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2018 (8) TMI 2101 - HC - Benami PropertyBenami transaction - Power of Adjudicating Authority to regulate its own procedure - not giving opportunity to cross-examine - reason on the pending applications filed by the petitioners - HELD THAT:- Cross-examination in the proceeding initiated by the respondents, cannot be said to be a right of the petitioners and can be considered to be an integral part of the principle of natural justice, which is required to be followed in view of Section 11 of the PBPT Act, 1988 as the proceeding before the Adjudicating Authority has to be guided by the principle of natural justice. It is noteworthy to mention that as per subsection (5) of Section 24 of the PBPT Act, 1988 in which impugned show cause notice has been issued referring the matter to the Adjudicating Authority, the Initiating Officer after passing the provisional attachment of property is obliged to draw up the statement of the case and refer it to the adjudicating authority. On receipt of reference under Sub-section (5) of Section 24, the adjudicating authority shall issue notice to the stakeholders as provided under Sub-section (1) of Section 26 of the Act. Section 26(3) makes it clear that the adjudicating authority will examine the entire issue and relevant material. It the right to cross-examine cannot be considered to be an integral part of the principle of natural justice, however, it is open for the authority to examine the available circumstances and if deems fit, the opportunity to cross-examine can be provided, but not as a matter of right. Thus, considering the overall circumstances without expressing any opinion whether the respondents have to provide an opportunity of cross-examination or to supply the certified copies of the documents requested by the petitioners, an order has to be passed by the authority assigning reason on the pending applications filed by the petitioners as to why such applications cannot be accepted. It is not proper on the part of the respondents not answering the applications submitted by the petitioners and sitting silent over the applications demanding documents and asking opportunity for cross-examination is itself arbitrary and in violation to the principle of natural justice. This petition is disposed of directing the respondent No.2 to pass appropriate order on the pending applications of the petitioners assigning reason for not providing the certified copies of the documents and not giving opportunity to cross-examine.
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