C.R.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE MR. A.MUHAMED MUSTAQUE &

THE HONOURABLE MR. JUSTICE S.MANU MONDAY, THE 15^TH DAY OF JULY 2024 / 24TH ASHADHA, 1946 WA NO. 982 OF 2024 AGAINST THE JUDGMENT DATED 05.07.2024 IN WP(C) NO.21755 OF 2024 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

SELF EMPLOYERS SERVICE SOCIETY, REG NO K-705/97, KOTTATHIL BUILDING, NEW MARKET ROAD,KOTTAYAM DISTRICT, PIN-686011 REPRESENTED BY, ITS GENERAL SECRETARY, KURUVILA THOMAS AGED 79 YEARS S/O.

THOMAS POOPPADA, RUBBER BOARD P.O, MANARCKADU, RUBBER BOARD, KOTTAYAM, PIN – 686 009 BY ADVS.

P.CHANDRASEKHAR ANAND SANKAR ANOOP KRISHNA C.RAMAN JENNY THANKAM PRATHEEKSHA RAJ REGIMOL M.K.

RESPONDENTS/RESPONDENTS:

1 THE COMPETENT AUTHORITY, SECRETARY TO THE GOVERNMENT (UNDER SEC.7(3) OF BANNING OF UNREGULATED DEPOSIT SCHEMES (BUDS) ACT 2019), THIRUVANANTHAPURAM, PIN – 695 001

2 THE ADDITIONAL DIRECTOR GENERAL OF POLICE (CRIMES)

THIRUVANANTHAPURAM, PIN – 695 001

3 DISTRICT REGISTRAR (GENERAL) KOTTAYAM, OFFICE OF THE DISTRICT REGISTRAR (GENERAL), COLLECTORATE P.O., KOTTAYAM., PIN – 686 002

4 S. SOMARAJ, AGED 52 YEARS, S/O LATE RAMAKRISHNAN, AYYANKOIICKAL HOUSE, PUTHUPPALLY VILLAGE,PUTHUPPALLY P.O KOTTAYAM, PIN – 686 011 K.R. RANJITH GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON

15.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

C.R.

J U D G M E N T

A. Muhamed Mustaque, Acg.C.J.

A charitable society called Self Employees Service Society, registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955, approached this Court questioning the proceedings of the competent authority constituted under the Kerala Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act). The competent authority passed a provisional order invoking Section 7(3) of the BUDS Act, provisionally attaching all movable and immovable properties belonging to the society. A reasoned order has been passed. The question raised before the Court is that whether such a provisional order, without enlisting the movable and immovable properties, is legally sustainable and whether it is in the statutory form (Form 1) or not.

2. The learned Single Judge disposed of the matter relegating the appellant/petitioner to approach the Designated Court.

3. The learned counsel appearing for the appellant/petitioner argued in extenso and submitted that the impugned order is per se illegal as it does not contain the list of movable and immovable properties belonging to the society. It is further argued that Rule 4 of the Kerala Banning of Unregulated Deposit Scheme Rules, 2021 (BUDS Rules) prescribes the procedure to be followed for issuing such provisional order.

4. We also heard the learned Government Pleader and the learned counsel for the party respondents.

5. Section 7(3) of the BUDS Act refers to the power of the competent authority to pass provisional order attaching the deposits or any other property acquired by the deposit taker.

6. Section 14 of the BUDS Act states that the competent authority shall, within the maximum period of 60 days from the date of provisional order, file an application with such particulars as may be prescribed before the Designated Court for making the provisional attachment absolute and for permission to sell the property so attached by public auction or, if necessary, private sale.

7. The simple question in this case is the legality of the provisional order passed. Once the order is passed and the procedure under Section 14 of the BUDS Act is complied, the rest of the remedy lies before the Designated Court and the Designated Court can pass appropriate orders invoking Section 15(3) of the BUDS Act either by making attachment absolute, or varying it by releasing a portion of the property from attachment or cancelling the provisional order of attachment.

8. The BUDS Act is central legislation wherein the procedure to be followed in the matter of attachment is silent. However, under Section 38 of th