KESAR DEVI Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal has been preferred by special leave against the judgment and order dated 12-1-1996 of a Division Bench of Rajasthan High Court by which the special appeal preferred by the appellant against the judgment and order dated 19-7-1995 of a learned single Judge was dismissed and the order passed by the Appellate Tribunal for Forfeited Property, New Delhi, was affirmed.

(2.) The appellant is widow of late Jagannath Sharma. The Customs and Central Excise Authorities of Jaipur recovered 5 gold bars from Jagannath Sharma on 24-7-1969. On 8-4-1972 police authorities recovered 15 gold bars from Radha Ballabh and on 15-11-1972 two gold bars of foreign origin were recovered from Ram Parekh and both of them gave statements that they had bought the same from Jagannath Sharma. On 11-10-1973 police recovered 38 gold bars from one Ram Prasad Sharma and the documents showed that the same belonged to Jagannath Sharma. Jagannath Sharma was then detained under MISA on 8-10-1974, but the detention order was revoked and he was released in November, 1974. Thereafter, he was again detained on 4-8-1975 under COFEPOSA Act by an order passed by the Deputy Secretary to the Home Department, Government of Rajasthan, Jaipur. The detention order was passed on the ground that the State Government was satisfied that with a view to prevent Jagannath Sharma from dealing in smuggled goods and engaging in transporting or concealing or keeping smuggled goods, it was necessary to make an order under S. 3(1) of the COFEPOSA Act to detain him.

(3.) Proceedings for forfeiture of three properties, namely, (1) House Property No. D-48, Bapu Nagar, Jaipur; (2) House property known as Haldia House, Johari Bazar, Jaipur (Municipal No. JD-JMC-1/106/1948); and (3) House property in Mehandi Ka Chowk, Ramganj Bazar, Jaipur (Municipal No. GD-JMC-1/276/1948) were initiated under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (for short "SAFEMA"). A notice under S. 6(1) of SAFEMA (hereinafter referred to as "the Act") was issued to the appellant-Smt. Kesar Devi with regard to Bapu Nagar property and a similar notice was issued to the appellants-husband Jagannath Sharma with regard to the other two properties, namely, Haldia House and Mehandi Ka Chowk. Jagannath Sharma gave a reply that the aforesaid two properties did not belong to him but belonged to his wife. Thereafter, the competent authority issued a letter dated 24-7-1977 purporting to be a notice under S. 6(2) of the Act to the appellant. In this letter apart from enclosing a copy of the notice under S. 6(1) issued to Jagannath Sharma as required by Cl. (2) of S. 6, the competent authority called upon the appellant "to produce evidence if she was the real owner of the aforesaid property, and if so, to indicate the source of her income, earnings or assets out of which or by means of which she had acquired the properties." In her reply dated 5-5-1977, the appellant asserted that she was the absolute and exclusive owner of all the three properties and the same had been purchased out of her own individual income and they had nothing to do with her husband Jagannath Sharma. The competent authority, after considering the material on record passed an order under S. 7(1) of the Act on 28-7-1977 against the appellant forfeiting Bapu Nagar property. A separate order was passed against Jagannath Sharma on the same date forfeiting the other two properties. The orders were passed on the finding that though the ostensible owner of the properties was Smt. Kesar Devi but the real owner was her husband Jagannath Sharma. In appeal, the Appellate Tribunal vide its order dated 26-10-1977 set aside the order and remanded the matter to the competent authority to enable the appellant and her husband to cross-examine the witnesses and also to produce such witnesses in support of their case, as they may desire. Thereafter, the competent authority, after affording an opportunity of hearing and leading evidence, passed a fresh order, forfeiting all the three properties, namely, properties at Bapu Nagar, Haldia House and Mehandi Ka Chowk.