JUDGMENT :

VIJAY BISHNOI, J.

1. Facts of all these cases are identical and common question of law is involved in these writ petitions, therefore, they are decided together. For the sake of convenience, the facts of D.B.Civil Writ Petition No.16732/2023 are taken into consideration for adjudication of these writ petitions.

2. The petitioner No.1 is a private limited company incorporated under the provisions of Companies Act, 1956, whereas the petitioner No.2 is the Director of the petitioner No.1-company.

3. Notices under Section 19 of the Prohibition of Benami Property Transaction Act, 1988 (hereinafter referred to as ‘the PBPT Act’) was issued to the petitioners by the Initiating Officer and responses to the same were filed. Thereafter show cause notice under Section 24(1) and (2) of the PBPT Act was issued to the petitioners by the respondents on 28.04.2023. On 01.05.2023, order for provisional attachment of the property was issued under Section 24(3) of the PBPT Act. On 28.07.2023, the respondents issued order for provisional attachment of the property under Section 24(4)(a)(i) of the PBPT Act till the passing of the order passed by the Adjudicating Authority under Section 26(3) of the PBPT Act. Vide order dated 07.08.2023 (Annexure 14), the Initiating Authority made a reference to the Adjudicating Authority.

4. Under the above referred circumstances, the petitioners filed this writ petition seeking following reliefs:

“It is, therefore, most humbly prayed that this Hon’ble Court may kindly be pleased to:-

a. Issue writ in the nature of certiorari or any other appropriate writ/order/direction quashing/nullifying the Respondent’s Impugned Provisional Attachment Order dated 01.05.2023 and all consequential orders/references thereto;

b. Issue writ in the nature of certiorari or any other appropriate writ/order/direction quashing/nullifying the Respondent’s Impugned Attachment Order dated 28.07.2023 and reference letter dated 07.08.2023 and all consequential orders/notices issued by the Respondent;

c. Issue writ in the nature of certiorari or any other appropriate writ/order/direction quashing/nullifying the proceedings initiated against the Petitioner No.1 including the Impugned Attachment Order and consequent proceedings thereto;

d. Grant any other relief as deemed to be fit and proper under the facts and circumstances of the case.”

5. Assailing the validity of the impugned orders, learned counsel for the petitioners have argued that the show cause notice under Section 24(1) and (2) of the PBPT Act was issued to the petitioners on 28.04.2023 asking them to submit their response to the show cause notice up to 15.05.2023, however, without waiting for the reply of the petitioners, the provisional attachment order under Section 24(3) of the PBPT Act was issued on 01.05.2023. It is submitted that the said action of the respondents is violative of principles of natural justice and, therefore, the provisional attachment order is liable to be quashed and set aside.

6. Learned counsel for the petitioners have further submitted that as per Section 24(1) and (2) of the PBPT Act, if the Initiating Officer, on the basis of material in his possession, has reason to believe that a person is a Benamidar and other person is beneficial owner in respect of the property, then only he may, after recording reasons in writing, issue a show cause notice to such persons. In the present case, the Initiating Officer has failed to record any reasons for initiating the impugned proceedings against the petitioners and the said action of the Initiating Officer is, therefore, violative of the provisions of the PBPT Act as well as the violative of principles of natural justice.

7. Learned counsel for the petitioners have further submitted that as per the circular dated 14.08.2019 issued by the Central Board of Direct Taxes, every communication issued by any Income Ta