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IN THE HIGH COURT OF DELHI
Yashwant Varma, J.
Cobol Technologies Pvt. Ltd. - Appellant
Versus
Union of India - Respondent
W.P.(C) 12846 of 2021, CM Appls. 12338 of 2022, 12440 of 2022, W.P.(C) 12847 of 2021, CM Appls. 14748 of 2022, 15538 of 2022 and W.P.(C) 12853 of 2021, CM Appls. 15545 of 2022, 14217 of 2022
Decided On : 04-05-2022




The appointment of a new Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 is valid despite prior hearings, and petitioners cannot claim a right to the previous authority's decisions post-appointment.

Headnote:(A) Prohibition of Benami Property Transactions Act, 1988 - Section 7 - Writ petitions regarding appointment of Adjudicating Authority and reserved judgments - Petitioners sought a direction to set aside a notification extinguishing the previous authority's ability to decide cases. The court noted that the change in authority was by statutory amendment, thus finding no wrongdoing on the part of the respondents. The petitioners claimed a right to seek the continuation of the previous authority, which the court rejected, emphasizing valid appointment of the new authority. (Paras 3-8)

(B) Judicial authority - No indefeasible right for continuance of previous Adjudicating Authority despite valid statutory appointments - The appointment of the new authority is procedural and cannot be interrupted administratively. (Paras 6-8)

Facts of the case:
Petitioners challenged the notification that ended the previous Adjudicating Authority's ability to decide cases that were reserved post-hearing. The matter involved complex statutory provisions and multiple hearings.

Findings of Court:
The court found the petitions misconceived, affirming the legitimacy of new appointments under changing statutory provisions.

Issues: Whether petitioners could compel the former authority to continue despite changes in statutory authority.

Ratio Decidendi: The court ruled the appointment under the new law was valid and not subject to challenge and affirmed the procedural validity that allows for regulatory changes in authority.

Result: Writ petitions dismissed with costs of Rs.50,000.

JUDGMENT

Yashwant Varma, J. (Oral)--Since these writ petitions raise common questions, they were with the consent of parties taken up for disposal together. For the sake of brevity, the Court notes the reliefs claimed in the lead writ petition being W.P. (C) 12846/2021. Those reliefs read thus:

    a. Issue a Writ, Order or Direction in the nature of a Mandamus or any other appropriate Writ, Order or Direction thereby setting aside the notification dated 08.10.2021 issued by the Ministry of Finance, Government of India, whereby it has extinguished the ability of the existing Member Adjudicating Authority, New Delhi to deliver orders/judgments in the matters in which orders are reserved by appointing a new officer to the post of Member, Adjudicating Authority at New Delhi, for Prohibition for Benami Property Transactions Act, 1988, without providing any time period for him to pass orders/judgments though done earlier in previous notifications, and thereby directing the concerned Member, Adjudicating Authority to (i) pass orders/judgment within a specified time frame (2-3 months) in respect of all cases which he has reserved judgments after hearing arguments, in particular the case of the Petitioner which has now undergone two full rounds of hearing and where judgment has been reserved now for the second time as recently as on 16th September 2021;

OR ALTERNATIVELY

    b. Issue a Writ, order or direction including a Writ in the nature of Mandamus and/or Certiorari or any other appropriate Writ, Order or Direction, thereby directing Respondent No. 2 Adjudicating Authority and its concerned officer to pass orders/judgment within a specified time frame (2-3 months) in respect of all cases which have been heard by him and where judgment has been reserved, in particular the case of the Petitioner;

AND

    c. Pass necessary orders and directions thereby laying down guidelines for the Respondent No. 1 that during issuing transfer orders, the same should have a provision that the concerned Authority/Tribunal Member/etc. shall be authorized to pass judgments within a relevant period of time in the matters which have already been reserved for judgment;"

2. When the writ petition was initially entertained, a learned Judge of the Court on 16 November 2021 proceeded to pass the following interim order:

    "5. Issue notice. Ms.Nidhi Raman, CGSC accepts notice. She prays for, and is granted, two weeks' time to obtain instructions and file a reply, explaining the stand of the respondent as also how this issue can be resolved. In its reply, the respondent will also give a comprehensive list of the matters in which judgment has been reserved by the then incumbent officers holding the post of Member, Adjudicating Authority under the Prohibition Benami Property Transactions Act, 1988.

    6. Response thereto, if any, be filed before the next date.

    7. In case, before the next date, the matters are once again listed for arguments before the Adjudicating Authority, it will be open for the petitioners to make a request to the said Authority for adjourning the matter to await the outcome of the present petition, which request, if made, will be considered favourably by the Adjudicating Authority."

3. The grievance of the petitioners essentially is that on more than one occasion the Adjudicating Authority constituted under the Prohibition for Benami Property Transactions Act, 1988 ["1988 Act"] has been transferred out after final hearing of matters had been concluded and orders reserved.

4. From the facts which are disclosed in the writ petition it appears that proceedings against the petitioner in the lead matter commenced in February 2021. Undisputedly pursuant to amendments introduced in Section 7 of the 1988 Act by Finance Act, 2021, the competent authority under the Smugglers and Foreign Exchange Manipulators (forfeited of property) Act, 1976 [SAFEMA] was nominated and appointed to act as the Adjudicating Authority under the 1988 Act also. It is the case of the pe

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