In a recent case, the Kerala High Court dismisses petition against show cause notice (SCN) and provisional attachment order under Prohibition of Benami Property Transactions Act, 1988 on availability of statutory remedy.
Muhammed Suhaib P C.,the Petitioner challenges show cause notice as well as the provisional attachment order ssued under Section 24(3) of the Prohibition of Benami Property Transactions Act, 1988 [the Act’].
Sri.P.Raghunathan, the counsel for the petitioner, submitted that the show cause notice is not maintainable since the cash allegedly seized, which is the subject matter of the show cause notice, cannot be treated as a benami property as the said amount had already been assessed as income of the petitioner. It was further submitted that the provisional attachment of the petitioner’s benami account is also perverse, warranting an interference by this Court.
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Sri.Navaneeth N. Nath, the Standing counsel for the respondent, on the other hand, submitted that, large amount of cash was seized from two persons and on production of the said currency before the learned Magistrate, six persons claimed ownership to the said amount. It is in view of the aforesaid circumstances that the provisions of the Act have been invoked and show cause notices were issued, apart from ordering provisional attachment.
Counsel further submitted that, since it is only a show cause notice, it is too premature a stage for this Court to interfere. The Standing counsel also referred to the judgment dated 27.11.2024 in W.P.(C) No.30547/2024 wherein petitioners therein, who claimed ownership to the amount approached this Court challenging the show cause notice and the provisional attachment. Still, this Court relegated them to pursue the remedies available under the Statute.
On a consideration of the rival contentions this Court notices that petitioner is challenging the show cause notice issued on 05.08.2024 directing him to explain why the property which was specifically mentioned as cash of Rs.1,56,00,000/- seized by Nilambur Police should not be treated as benami property as per the provisions of the Act. Petitioner has not yet filed an objection to the show cause notice.
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Similarly, on the same day of show cause notice, a provisional attachment order has also been issued. Since the proceedings initiated are statutory proceedings, the petitioner has the remedy of preferring an objection against the show cause notice and obtain an adjudication on the said matter.
The single bench of Justice Bechu Kurian Thomas court viewed that the petitioner can raise all contentions before the adjudicating authority and since such a remedy is available, it is not proper for this Court to exercise the extra ordinary jurisdiction under Article 226 of the Constitution of India. The court dismissed the petition and held that the petitioner is at liberty to file an objection within a period of three weeks from today.
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