The Union Of India vs Winston Tan on 16 March, 2009

IN THE HIGH counr or 

'AT BANGALORE

Dated this the 16"! day of    % Z --

Pmsmwr

THE HONBLI3 m. P 9    %

TI-IE HoN':BLE   sanmmw

Writ Ap, pg :11 Na;?I_'_._31=9zA53;iO_7«:("§C}1'J-RES)

BETWEEN   

1 THE_L;NI(3N"oEI,NmA- V  '-
mam ozmiuamrgg  
GOVERNMEN'F.Q'FINDIR . '
NEW_DELHI_    " _

BY 1Ti3__MIN:s?R&'--..oF I«'mA«rJcI3

2 TEE COEviPE'E'E'.NT AK-ITH()RiTY
. s3,MU'c3GLERs&; FOREIGN EXCHANGE
 . - _.1MA;§:.PU%LATORsWGRFEITURE or? -

 PP.O£?EI§'f1'"{.}VACT

 T UTS.A,_V,.,64:f1: G N CHETTY ROAD

 N=nG.aR,.cfiENNA:~600 01*? .. AFPELLABFFS

[By Sri Aravind Kumar, ASG]

   'WINSTON TAN

Sf O.WINS'I'ON TAN
R[A'I'.FLA'I' NOD04
KAMALA MANSION
GROUND FLOOR

ROMENADE PLACE

 



 Ne'

filed by the respondents 1 and 2 herein, 

the order dated 23-6~2005, Whereunder the   

to have been acquired by the re_spc;'ndents_1 :-got 

forfeited in View of Section 6'.,theV' fioreilcgiii»
Exchange Manipulators.    Act, 1976
[for short, the Act],   Judge quashed
the same  .::&'remende(i:::,   to the second
respondent   further direction to
the   and 2 -- Writ petitioners
and to vihoid  proceeding further in the

matter, in  the principles of natural justice.

  Rdofioiidfiilts 3 and 4- are the original owners of the

  from whom the respondents 1 and 2 --

-V  have purchased it, after the initiation of the
 V' "faction tinder Section 6 of the Act, but however, the
 respondents 3 and 4, despite service of notice  them,

 V  u heiroided the proceedings, both before the learned Single

Judge as well as before this court, in spite of newspaper

publication of the notice in The Times of India, dated 2&2-

 



2009, notifying that the matter will be takenfup' 

hearing today.

3. The undisputed facts  __  
are treated as 'the persons',    éection
2(1) of the Act, on  t_'t'1eV_'of  Act are
attracted. A detention   came to be
passed against"   the provisions
of the   and Prevention of
Atct,~:'_'vv_:9'7uftVVFIOFEPOSA], pm-suam to

which preeeedhigdtte. the property acquired by the

V respondents   4, as provided under Section 6 of the Act,

   'on 8- 1i2H;t2003. An explanation was called from

 and 4 by the said notice issued under

 . Section V-6(i}:"'of the Act. Thereafter on 21-442004, the

it 0' ' fl--respo_ndVents 3 and 4 were served with a second notice to

-0   their explanation on or before 4-5-2004. On receipt

" efithe second notice dated 2144-12004, respondents 3 and-4

submitted their explzmation on 26«5«~2004, wherein the

respondents 3 and 4 also sought for personal hearing, on

    



which date the proceeding was adjourned  at

the request of respondents 3 and 4 and 

to 25-27-2004 and finally it was  4pg1o-2foo4o p giyin~g  

fair opportunity to the respondents_T3- and 
avoided personal hearing. 2  was 
adjourned to 16-3-20!.£:)p_$j. toVv't3(V)fl-3~20O5, on
which date too, the  absent.
As a result,  3 and 4
on 3-5~200:'.$..,.  directorate, as they
continued   -and' an order of forfeiture was

passed   Section 7(1) of the Act, which

V was    petition.

  V' In inxeanwhfle, on 10-2~2005, respondents 3 and 4

sotd   in question in favour of the respondents I

and 2 ~44 xtriit petitioners. The respondents 1 and 2 ---- writ

  pdpetifjoiiers chalienged the impugned proceedings of

h  forfeiture of the property on the grounds that they had never

  -« :been heard before passing the impugned order and that the

impugned order dated 23-6-2005 violates the principles of

 



V'  :2 person has been convicted of an ofience
   wholesale price_ of the goods in the
 ._ "-ordirufiy  of trade in India as on the date of

' the  of the ojfenoe.

* : "reactive", in relation to a person, means -

 - ! "fij : spouse of the person;

'T (ii) brother or sister of the person;

10

sectionéi, read with subsection (5) of.,
 12A, ofthatAct; or   "  

(iv) Such order of detention    u  

by a court of competent ~:' --  2 _ 

((3) every person who  _ a rehtive of
referred to in clause {afar clcmse  '    

(at) every associate perso;z._referred   (a)
or clauses (b); V ._ 'A  

(e) any holder  -'Vita' this clause _
refen*er.i"to as titeii p_re4$e§ru':3 heider) of any
propertyfi:;w'hieh  a.tVany--£:1Eme previously
held' by ~.referred»to in clause (a)
or arms (5)  thefpresent holder or,
,a"e~t.he. trtczy-.be, 'rz.v:.rg"one who held such
pmpeirfii%y_«VofierV%e:;¢h person and before the
pres-eat  __or was a transferee in
,faith ;,for_ tuieqtzate consideration

Q For  purposes of sub-clause (i)
 (a), "the...:;a£ue of any goods in relation to

Exploinatian 2.----For the purposes of clause (0),

(iii) brother or sister of the spouse of the person;



£2 
3 3:? J'
a':»*"""'"

  



18

declared as null and void. Therefore, it is not   
Court to elasticaliy extend the principles of _i1aivL:ii'ai 'j"e1s'tjce_  . 
ail the cases, where a notice is not =at  file

statute by operatian 01' law.

13. In the result,   andvyihéx impugned
order passed by thc  aside.
     Chlef Justice

Sd/-2
Judge

  ..... 

V

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