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2019 (9) TMI 737 - HC - Benami PropertyValidity of order of Tribunal staying the Show Cause Notice - Prohibition of Benami Property Transactions Act - HELD THAT:- The show-cause notice issued on 21st June 2019, is under Section 26(1) of the Benami Act and not under Section 26 (3). The reasons for this are not far to seek. The scheme of the Benami Act, under Section 5, provides for confiscation of any property which is subject matter of a benami transaction, by the Central Government. An Adjudicating Authority is appointed under Section 7. The proceedings for confiscation are initiated by the Initiating Officer under Section 24 of the Benami Act. If the Initiating Officer passes a provisional order of attachment of the property, he draws up a statement of case and refers it to the Adjudicating Authority under Section 24(5) of the Benami Act. The second level of adjudication then begins by the Adjudicating Authority issuing a show cause notice u/s 26(1) of the Benami Act. The said show-cause has to be issued within a period of thirty days upon the reference being received. At least 30 days’ period has to be given for filing of the reply and furnishing the information. After affording an opportunity of being heard, the Adjudicating Authority has to pass appropriate orders as per Section 26. However, the statute provides a specific time period for the said process to be concluded i.e., a period of one year. The questions raised by the respective parties shall be finally adjudicated after completion of pleadings. Clearly, the show-cause notice under challenge has been issued under Section 26(1) and the same does not, prima facie, constitute ‘an order’ passed by the Adjudicating Authority. The jurisdiction of the Appellate Tribunal to entertain the Respondent’s challenge to the show-cause notice is in doubt. Issue notice to the Respondents returnable on 30th January, 2020. Till the next date of hearing, the interim order passed by the Appellate Tribunal staying the operation of the notice dated 21st June, 2019, shall remain suspended. Replies to the show cause notice, shall be filed within 30 days from today. The Adjudicating Authority shall thereafter proceed in accordance with law and in accordance with the timelines prescribed under Section 26 of the Act.
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