TMI Blog1990 (7) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... The Competent Authority initiated proceedings under the Act against Chatar Singh and his wife, Satpal Kaur, and issued them notices under section 6, with respect to the following properties : Chatar Singh : 1. 2K-3M of agricultural land in Village Behbalpur, Teh-Garh Shankar, Dist., Hoshiarpur. This was purchased on December 31, 1970, for Rs. 3,180. 2. 113K-1M of agricultural land (109K-11M in Village Boot and 3K-10M in Village Khingram) in Teh. and Dist. Jullunder. This was purchased on June 15, 1971, for Rs. 3,88,732. 3. Shop No. 1-C, Dilkusha Market, Jullundur City. This was purchased on November 27, 1972, for Rs. 47,700. Satpal Kaur : 1. 2K-4M of agricultural land in village Behbalpur, Teh. Garh Shankar, Dist. Hoshiarpur. This was purchased on December 31, 1970, for Rs. 3,180. 2. Plot No. 323, New Jawahar Nagar, Jullundur. This plot, measuring 3 Karnals, 185 square feet was purchased on January 6, 1971, for Rs. 47,700. In reply to the notices, the stand taken by the appellants was that they were settled in England and Rs. 3,50,000 by a bank draft had been sent by Chatar Singh to his brother, Ajaib Singh, and that it is with this money sent that the properties ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the person affected). It is clear that section 6(1) makes it obligatory on the part of the Competent Authority to consider the following points before issuing a formal notice to the affected person : (1) the value of the property acquired by the affected person, (2) his known sources of income, earnings or assets, and (3) any other information or material available to it as a result of action taken under section 18 or otherwise. The section further enjoins upon the Competent Authority to record his "reasons to believe" in writing. The point for consideration is whether, in the face of this express provision, the Competent Authority is justified in not providing a copy of his "reasons to believe" to the affected person in spite of repeated requests. We are clearly of the opinion that the Competent Authority is not so justified. The object of the provision contained in section 6 of the Act is primarily to protect the interest of the affected person to whom a notice under section 6 is issued. In other words, it has been so provided to avoid the issue of unjustified or frivolous notices. The person to whom such a notice has been issued has, therefore, a right to know that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the sale deed executed by them on June 15, 1971 (copy placed in the file) that out of the sale consideration of Rs. 3,66,712, they had received Rs. 1 lakh from Darbara Singh. Chatar Singh was to pay the balance of Rs. 2,66,712 to the vendors. The three vendors were given bank drafts for Rs. 72,000 each on Bank of Baroda. The balance of Rs. 50,712 was paid in cash before the Sub-Registrar at the time of registration of the sale deed. It is interesting to note that it is Ajaib Singh who was present at the time of the execution of the sale deed on behalf of his brother, Chatar Singh, and it was he who made the requisite payment. It is so recorded in the sale deed itself. The other two items in the case of Chatar Singh at S. Nos. 1 and 3 relate to the purchase of land measuring 2K-3M for Rs. 3,180 on December 31, 1970, and a shop for Rs. 47,700 on November 27, 1972. The total amount spent for the purchase of the three properties detailed above in the name of Chatar Singh comes to Rs. 3,17,592. On December 31, 1970, Satpal Kaur purchased 2K-4M of agricultural land for Rs. 3,180 and Plot No. 323, New Jawahar Nagar, Jullundur, for Rs. 47,700 on January 6, 1970. The total amount spent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew, it will be prudent to infer that the money sent by Chatar Singh, the appellant, was spent for the purchase of the properties in dispute. The learned Deputy Director, appearing on behalf of the Competent Authority, has argued that the sale expenses incurred for the execution of the sale deeds are normally by the vendees. The vendees in the instant case are the two appellants. The sale expenses come to about Rs. 27,000. The legal source of money spent for the execution of the documents has not been proved. This argument is rather fallacious. In such matters, the source of every penny spent on the acquisition of properties is not required to be explained. The facts that the appellants are persons of substance and that they had legal means to acquire the properties are sufficient to record a finding in their favour. The appellants are settled in England since early 1960s. They had gone to a foreign country to earn money. It is a matter of common knowledge that persons, after migration to foreign countries, did make good money by hard work. It is admitted that, in 1970, Chatar Singh, the appellant, sent a bank draft for Rs. 3,50,000 to his brother, Ajaib Singh, in India. This fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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