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Smart Summary

Factual and Procedural Background

These writ petitions challenge the orders passed by the Adjudicating Authority under Section 26(3) of the Prohibition of Benami Property Transactions Act, 1988. The petitioners seek to quash the impugned orders dated 27.03.2024, which were alleged to be illegal, arbitrary, and without jurisdiction. The petitions were filed under Article 226 of the Constitution of India, invoking the writ of certiorari to call for and quash the records of the first respondent.

Legal Issues Presented

  1. Whether the impugned orders passed under Section 26(3) of the Prohibition of Benami Property Transactions Act, 1988 are liable to be quashed as illegal, arbitrary, and without jurisdiction.
  2. Whether the writ petitions are maintainable in view of the availability of an alternative statutory remedy by way of appeal under Section 46 of the Prohibition of Benami Property Transactions Act, 1988.

Arguments of the Parties

Respondents' Arguments

  • The learned Special Public Prosecutor submitted that the petitioners have an effective alternate remedy by way of appeal before the Appellate Tribunal under Section 46 of the Prohibition of Benami Property Transactions Act, 1988.
  • Given the existence of this statutory appeal mechanism, the writ petitions are not maintainable and should not be entertained by the High Court.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court noted the presence of a statutory remedy of appeal under Section 46 of the Prohibition of Benami Property Transactions Act, 1988, which provides an effective mechanism for challenging the impugned orders. Recognizing this, the Court held that it is not inclined to entertain the writ petitions as the petitioners must first exhaust the available statutory remedy. The Court therefore dismissed the writ petitions but granted liberty to the petitioners to file an appeal within four weeks from the date of receipt of the order. The Court also directed the respondents not to take any coercive action against the petitioners during this period to enable the filing of the appeal. The Appellate Tribunal was instructed to consider and dispose of the appeal on its merits and in accordance with law upon receipt.

Holding and Implications

DISMISSED

The writ petitions challenging the impugned orders under Section 26(3) of the Prohibition of Benami Property Transactions Act, 1988 are dismissed on the ground of availability of an alternative statutory remedy. The petitioners are permitted to file an appeal before the Appellate Tribunal within four weeks, and the respondents are restrained from taking coercive steps during this period. This decision reinforces the principle that statutory remedies must be exhausted before invoking writ jurisdiction under Article 226. No new precedent was set; the ruling limits the High Court's interference in matters where an effective statutory appeal exists.

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    C.PERIYASAMY v. ADJUDICATING AUTHORITY

    W.P.Nos.14142, 14147, 14156 and 14164 of 2024

    IN THE HIGH COURT OF JUDICATURE AT MADRAS

    DATED : 20.11.2024

    CORAM

    THE HONOURABLE MR.JUSTICE S.SOUNTHAR

    W.P.Nos.14142, 14147, 14156 and 14164 of 2024 and W.M.P.Nos.15328, 15331, 15344 and 15348 of 2024

    C.Periyasamy ...Petitioner (in WP.No.14142/2024) S.Kannapiran ...Petitioner (in WP.No.14147/2024) C.Akilesh ...Petitioner (in WP.No.14156/2024) S.K.Arumugasamy ...Petitioner (in WP.No.14164/2024) vs.

    1.Adjudicating Authority

    Under The Prohibition of Benami Property Transaction Act, 1988 Government of India, Ministry of Finance

    Department of Revenue

    Office of the Competent Authority [SAFEM (FOP) A & NDPSA Shastri Bhavan, New Building Complex 4thFloor, No.26, Haddows Road, Nungambakkam,

    Chennai - 600 006

    2.The Joint Commissioner of Income Tax,

    Benami Prohibition Unit,

    Room No. 2, Income Tax Investigation Wing Building, Ground Floor, 46, Mahatma Gandhi Road,

    Nungambakkam,

    Chennai - 600 034

    1/6

    3.The Additional Commissioner of Income Tax, Benami Prohibition Unit,

    Room No. 201, Income Tax Investigation Wing Building, 2ndFloor, 46 Mahatma Gandhi Road,

    Nungambakkam,

    Chennai - 600 034 ... Respondents (in all WPs)

    PRAYER in W.P.No.14142 of 2024: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records on the file of the 1stRespondent and quash the impugned order in F. No.OCA/MDS/15/2023-PBPT dated 27.03.2024 passed by the 1st Respondent u/s. 26(3) of the Prohibition of Benami Property Transaction Act, 1988 as illegal, arbitrary and without jurisdiction.

    PRAYER in W.P.No.14147 of 2024: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records on the file of the 1stRespondent and quash the impugned order in F. No.OCA/MDS/16/2023-PBPT dated 27.03.2024 passed by the 1st Respondent u/s. 26(3) of the Prohibition of Benami Property Transaction Act, 1988 as illegal, arbitrary and without jurisdiction.

    PRAYER in W.P.No.14156 of 2024: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records on the file of the 1stRespondent and quash the impugned order in F. No.OCA/MDS/11/2023-PBPT dated 27.03.2024 passed by the 1st Respondent u/s. 26(3) of the Prohibition of Benami Property Transaction Act, 1988 as illegal, arbitrary and without jurisdiction.

    PRAYER in W.P.No.14164 of 2024: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records on the file of the 1stRespondent and quash the impugned order in F.

    2/6

    No.OCA/MDS/18/2023-PBPT dated 27.03.2024 passed by the 1st Respondent u/s. 26(3) of the Prohibition of Benami Property Transaction Act, 1988 as illegal, arbitrary and without jurisdiction. For Petitioners : M/s.Vandana Vyas

    for M/s.R.Sivaraman (in all WPs)

    For Respondents : M/s.M.Sheela

    Special Public Prosecutor

    (Income Tax Department) (in all WPs)

    C O M M O N O R D E R

    These Writ Petitions are filed challenging the order passed by the Adjudicating Authority under Section 26(3) of the Prohibition of Benami Property Transactions Act, 1988.

    2. When the writ petitions are taken up for hearing, M/s.M.Sheela, learned Special Public Prosecutor (Income Tax Department), submitted that against the impugned orders, the petitioners have got an effective alternative remedy by way of appeal under Section 46 of the Prohibition of Benami Property Transactions Act, 1988 before the Appellate Tribunal.

    3. In view of the availability of statutory remedy of appeal, this Court

    3/6

    is not inclined to entertain these writ petitions.

    4. Accordingly, the Writ Petitions are dismissed with liberty to the petitioners to file appeal under Section 46 of the Prohibition of Benami Property Transactions Act, 1988, within period of four weeks from the date of receipt of copy of this order. On filing of such appeal, the Appellate Tribunal shall consider the same and dispose it on its own merits and in accordance with law. Till the petitioners file appeal before the Appellate Tribunal, the respondents are directed not to take any coercive steps against the petitioners for a period of four weeks to enable the petitioners to file an appeal before the Appellate Tribunal. No costs. Consequently, the connected writ miscellaneous petitions are closed.

    20.11.2024

    Index : Yes/No Speaking order:Yes/No Neutral Citation:Yes/No dm

    Note:The Registry is directed to return the original impugned orders to the learned counsel for the petitioners, after getting necessary endorsement.

    4/6

    To 1.Adjudicating Authority Under The Prohibition of Benami Property Transaction Act, 1988 Government of India, Ministry of Finance

    Department of Revenue

    Office of the Competent Authority [SAFEM (FOP) A & NDPSA Shastri Bhavan, New Building Complex 4thFloor, No.26, Haddows Road, Nungambakkam,

    Chennai - 600 006

    2.The Joint Commissioner of Income Tax,

    Benami Prohibition Unit,

    Room No. 2, Income Tax Investigation Wing Building, Ground Floor, 46, Mahatma Gandhi Road,

    Nungambakkam,

    Chennai - 600 034

    3.The Additional Commissioner of Income Tax, Benami Prohibition Unit,

    Room No. 201, Income Tax Investigation Wing Building, 2ndFloor, 46 Mahatma Gandhi Road,

    Nungambakkam,

    Chennai - 600 034

    5/6

    S.SOUNTHAR, J.

    dm

    W.P.Nos.14142, 14147, 14156 and 14164 of 2024

    20.11.2024

    6/6

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    C.PERIYASAMY v. ADJUDICATING AUTHORITY
    (Nov 20, 2024)