Reportable IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS.

772-773 OF 2014
[Arising out of SLP (Civil) Nos.16872-16873 of 2007]

is!"n"t#

#"tt"$#"r%"

&A''(ll"nt

Versus )nion of *n+i" , -t#(rs &.(s'on+(nts

JUDGMENT Chel !e"# $% J. 1. 2. L("v( gr"nt(+. /#(s( t!o "''("ls "r( 'r(f(rr(+ "g"inst t#( fin"l

0u+g1(nt +"t(+ 2t# August 2007 '"ss(+ 3% t#( C"l$utt" 4ig# Court in 56A No.206 of 2003 "n+ or+(r +"t(+ 30 t# August 2007 in .(vi(! A''li$"tion 3("ring .78 No.2372 of 2007 +is1issing t#( s"i+ r(vi(! "''li$"tion fil(+ 3% t#( "''(ll"nt #(r(in. 3. /#( f"$ts l("+ing to t#( inst"nt litig"tion "r( "s

follo!s9

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:.

/#( "''(ll"nt !"s initi"ll% +(t"in(+ 3% or+(r +"t(+

12.12.127: un+(r t#( 'rovisions of t#( 6"int(n"n$( of *nt(rn"l S($urit% A$t; 1271 (sin$( r('("l(+) "n+ l"t(r un+(r t#( 'rovisions of t#( Cons(rv"tion of 5or(ign <=$#"ng( "n+ Pr(v(ntion of S1uggling A$tiviti(s A$t; 127: (#(r(in"ft(r r(f(rr(+ to "s t#( >C-5<P-SA?) on t#( groun+ t#"t #( in $oll"3or"tion !it# #is 3rot#(r; !#o !"s living in Lon+on "t t#"t 'oint of ti1(; !"s in+ulging in "$tiviti(s !#i$# "r( 'r(0u+i$i"l to t#( $ons(rv"tion of for(ign (=$#"ng(. /#( "''(ll"nt unsu$$(ssfull%

$#"ll(ng(+ t#( +(t(ntion or+(r. r(l("s(+ in 1277. @.

4( !"s (v(ntu"ll%

8#il( #( !"s in $usto+%; t#( s($on+ r(s'on+(nt

issu(+ " noti$( +"t(+ :t# 6"r$# 1277 un+(r s($tion 6(1) of t#( S1uggl(rs "n+ 5or(ign <=$#"ng( 6"ni'ul"tors

(5or(f(itur( of Pro'(rt%) A$t; 1276 (#(r(in"ft(r r(f(rr(+ to "s >t#( A$t?) $"lling u'on t#( "''(ll"nt to (='l"in t#( sour$(s of #is in$o1( out of !#i$# #( #"+ "$Auir(+ t#( "ss(ts +(s$ri3(+ in t#( s$#(+ul( to t#( noti$(. So1(

$orr(s'on+(n$( (nsu(+ 3(t!((n t#( s($on+ r(s'on+(nt

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on on( #"n+ "n+ t#( !if( of t#( "''(ll"nt "n+ t#( "''(ll"nt on t#( ot#(r #"n+; t#( +(t"ils of !#i$# 1"% not 3( n($(ss"r% for t#( ti1( 3(ing. 6. <v(ntu"ll% on 27t# Nov(13(r 1282; t#( s($on+

r(s'on+(nt '"ss(+ "n or+(r un+(r s($tion 7(1) of t#( A$t forf(iting t#( 'ro'(rti(s 1(ntion(+ in t#( s$#(+ul( to t#( s"i+ or+(r. 7. Aggri(v(+ 3% t#( s"i+ or+(r; "n "''("l !"s $"rri(+ to

t#( A''(ll"t( /ri3un"l $onstitut(+ un+(r s($tion 12 of t#( A$t. /#( "''("l !"s '"rtl% "llo!(+ s(tting "si+( t#(

forf(itur( of t!o it(1s of t#( 'ro'(rti(s. 8. Not s"tisfi(+ !it# t#( A''(ll"t( Aut#orit%Bs

$on$lusion; t#( "''(ll"nt $#"ll(ng(+ t#( s"1( in !rit '(tition No. C.-. No.10@:3 (8) of 1221 3(for( t#( 4ig# Court of C"l$utt". *n t#( s"i+ !rit '(tition; t#( "''(ll"nt "lso 'r"%(+ for t!o +($l"r"tions C (1) t#"t t#( A$t is ill(g"l "n+ ultra vires t#( Constitution "n+ (2) t#"t t#( +(t(ntion of t#( "''(ll"nt un+(r t#( C-5<P-SA 3% t#( or+(r +"t(+ 12t# D($(13(r 127: !"s ill(g"l "n+ voi+ C " $oll"t(r"l "n+ s($on+ roun+ of "tt"$E.

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2.

L("rn(+ Singl( Fu+g( of t#( C"l$utt" 4ig# Court 3%

"n or+(r +"t(+ 10t# 6"% 2002 '"rtl% "llo!(+ t#( !rit '(tition #ol+ing t#"t t#( forf(itur( of t#( 'ro'(rt% 3% t#( s($on+ r(s'on+(nt "s $onfir1(+ 3% t#( A''(ll"t( /ri3un"l !"s ill(g"l on t#( groun+ t#"t t#( noti$( un+(r s($tion 6(1) of t#( A$t +"t(+ :t# 6"r$# 1277 !"s not in "$$or+"n$( !it# t#( l"! "s t#( noti$( +i+ not $ont"in t#( r("sons !#i$# $onstitut(+ t#( 3"sis for t#( 3(li(f of t#( $o1'(t(nt "ut#orit% t#"t t#( "''(ll"nt ill(g"ll% "$Auir(+ t#( s$#(+ul(+ 'ro'(rti(s. 10. Aggri(v(+ 3% t#( or+(r of t#( l("rn(+ Singl( Fu+g(; t#( r(s'on+(nts #(r(in $"rri(+ t#( 1"tt(r in "''("l to t#( Division (n$#. % t#( 0u+g1(nt un+(r "''("l; t#( "''("l

!"s "llo!(+. 11. *t "''("rs fro1 t#( 0u+g1(nt un+(r "''("l t#"t t#oug# t#( "''(ll"nt soug#t " +($l"r"tion t#"t t#( A$t (SA5<6A) is un$onstitution"l; su$# " 'l(" !"s not 'r(ss(+ 3(for( t#( l("rn(+ Singl( Fu+g(.1
-n '(rus"l of t#( 0u+g1(nt "n+ or+(r of t#( L("rn(+ Singl( Fu+g( it "''("rs t#"t "lt#oug# t#( vir(s of t#( s"i+ A$t !"s un+(r $#"ll(ng( t#( r(s'on+(nt No.1 onl% "sE(+ for $"n$(ll"tion of t#( or+(r of +(t(ntion issu(+ un+(r S($tion 3 of t#( C-5<P-SA "n+ t#( or+(rs '"ss(+ 3% t#( $o1'(t(nt "ut#orit% so 1(rg(+ in t#( "''(ll"t( "ut#orit% un+(r s($tion 6(1) of t#( SA5<6A "s !(ll "s 'r"%(+ for r(l("s( of t#( 'ro'(rti(s $onfis$"t(+ 3% t#( "''(ll"t( "ut#orit% in t(r1s of t#( or+(r
1

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12.

(for( us; t#( "''(ll"nt 1"+( t#r(( su31issions C

(1) t#"t t#( noti$( issu(+ un+(r S($tion 6 of t#( A$t is +(f($tiv( "n+ t#(r(for( ill(g"l "s t#( noti$( +i+ not $ont"in t#( r("sons !#i$# 1"+( t#( $o1'(t(nt "ut#orit% 3(li(v( t#"t t#( noti$( s$#(+ul(+ 'ro'(rti(s "r( ill(g"ll% "$Auir(+ 'ro'(rti(s. *n ot#(r !or+s; t#( r("sons !(r( not $o11uni$"t(+ to t#( "''(ll"ntG (2) t#"t t#( forf(itur(; su$# "s t#( on( 'rovi+(+ un+(r t#( A$t; is viol"tiv( of Arti$l( 20 of t#( Constitution of *n+i"G "n+ (3) in t#( "lt(rn"tiv(; it is "rgu(+ C t#"t t#( 4ig# Court f"il(+ to $onsi+(r t#( Au(stion !#(t#(r t#( +($ision of t#( $o1'(t(nt "ut#orit% "s $onfir1(+ 3% t#( "''(ll"t( "ut#orit% is sust"in"3l( "n+ t#(r(for(; t#( 1"tt(r is r(Auir(+ to 3( r(1itt(+ to t#( 4ig# Court for "n "''ro'ri"t( $onsi+(r"tion of t#( l(g"lit% of or+(r of forf(itur(. 13. .(g"r+ing t#( non $o11uni$"tion of t#( r("sons; t#( 0u+g1(nt un+(r "''("l r($or+(+ "s follo!s9
>/#( 1"tt(r 1"% 3( looE(+ into fro1 "not#(r "ngl(. *n 1276 #( !"s un+(r +(t(ntion. 4is !if( r('li(+ to t#( s"i+ noti$( !it#out $o1'l"ining of non-su''l% of r("soning. Aft(r #is
i1'ugn(+ t#(r(in.

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r(l("s( t#( r(s'on+(nt No.1 g"v( " furt#(r r(0oin+(r 3% "+o'ting !#"t #"+ 3((n s"i+ 3% #is !if(. /#( "ut#orit% +i+ not 'ro$((+ "g"inst #i1 until #( !"s s(rv(+ !it# t#( r("soning in 1288. /#( r(s'on+(nt No.1 !"s "lso "ffor+(+ o''ortunit% to +("l !it# t#( r("sonings in #is r(0oin+(r. /#( $o1'(t(nt "ut#orit% "ft(r "ffor+ing #i1 o''ortunit% of #("ring '"ss(+ " +(t"il(+ r("son(+ or+(r. 4( 'r(f(rr(+ "n "''("l. /#( "''("l !"s "llo!(+ in '"rt t#"t too 3% " +(t"il(+ r("son(+ or+(r. 4(n$(; !( +o not fin+ "n% r("son to #ol+ t#"t t#( fun+"1(nt"l rig#t of t#( r(s'on+(nt No.1 !"s infring(+.?

*t "''("rs fro1 t#( r($or+ t#"t initi"ll% noti$( +"t(+ :.3.1277 un+(r S($tion 6(1) !"s issu(+ "t " 'oint of ti1( !#(n t#( "''(ll"nt !"s un+(r 'r(v(ntiv( +(t(ntion. Su3s(Au(ntl%; 3% " $o11uni$"tion +"t(+ 1 st Fun(; 1288; t#( r($or+(+ r("sons for t#( 3(li(f !#i$# l(+ to t#( issu"n$( of noti$( un+(r S($tion 6(1) of t#( A$t !"s s(rv(+ on t#( "''(ll"nt. /#( "''(ll"nt not onl% fil(+ "

r(0oin+(r to t#( s"i+ noti$( 3ut #( !"s "lso giv(n " #("ring 3(for( "n or+(r of forf(itur( un+(r S($tion 7 !"s '"ss(+. *t is in t#( 3"$Egroun+ of t#( "3ov(1(ntion(+ f"$ts !( "r( r(Auir(+ to $onsi+(r t#( su31ission t#"t t#( 4ig# Court (rr(+ in $o1ing to t#( $on$lusion t#"t noti$(

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un+(r S($tion 6(1) +i+ not viti"t(2 t#( su3s(Au(nt 'ro$((+ings. 1:. *n su''ort of t#( su31ission; l("rn(+ $ouns(l for t#( "''(ll"nt v(r% #("vil% r(li(+ u'on " 0u+g1(nt of t#is Court in Ajantha Industries and others v. Central Board of Direct Taxes and others; (1276) 1 SCC 1001. *t !"s " $"s( !#(r( t#is $ourt #"+ to $onsi+(r t#( l(g"lit% of t#( or+(r un+(r S($tion 127 tr"nsf(rring t#( H$"s(B of t#( Ajantha Industries. 1@. S($tion 127 of t#( *n$o1( /"= A$t; 1261 (1'o!(rs t#( "ut#oriti(s (1(ntion(+ t#(r(in) to tr"nsf(r >"n% $"s(? ((='l"in(+ in t#( s"i+ s($tion) fro1 on( *n$o1( /"= -ffi$(r to "not#(r. 5urt#(r; t#( s($tion sti'ul"t(s t#"t

3(for( su$# "n or+(r of tr"nsf(r is 1"+(; t!o $on+itions "r( r(Auir(+ to 3( $o1'li(+ !it# C (1) t#"t t#( "ss(ss(( 1ust 3( giv(n " r("son"3l( o''ortunit% to (='l"in !#% #is $"s( s#oul+ not 3( tr"nsf(rr(+G "n+ (2) t#( "ut#orit%
2

The respondent No.1 for the first time in the writ petition contended that the notice under Section 6(1) was bad due to non-supply of reasons whereas it would appear that the reasons were supplied as and when asked for. elayed supply of reasons! in our "iew! did not "itiate the subse#uent orders of the competent authority as well as appellate authority. Show cause notice was ser"ed in 1$%6. &t was not proceeded with till 1$'' when reasons were supplied. (rder was passed by the competent authority upon affordin) ade#uate opportunity of hearin). The respondent No.1 a"ailed the remedy of appeal where his appeal was partly allowed. *ith deepest re)ard we ha"e for the learned sin)le +ud)e! ,is -ordship was perhaps not ri)ht in interferin) with the show cause notice at the sta)e when the respondent No.1 a"ailed of the remedies in law and became partly successful before the appellate authority.

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tr"nsf(rring t#( $"s( is r(Auir(+ to r($or+ t#( r("sons !#i$# l(+ #i1 to initi"t( t#( 'ro$((+ings. *t "''("rs fro1

t#( 0u+g1(nt t#"t t#oug# first of t#( "3ov(1(ntion(+ t!o r(Auir(1(nts !"s $o1'li(+ !it#; it !"s foun+ t#"t no r("sons !(r( r($or+(+ 1u$# l(ss $o11uni$"t(+. D("ling !it# t#( l(g"lit% of su$# "n or+(r; t#is Court #(l+ t#"t t#(r( is " r(Auir(1(nt of not onl% r($or+ing t#( r("sons for t#( +($ision to tr"nsf(r t#( $"s( 3ut "lso su$# r("sons "r( r(Auir(+ to 3( $o11uni$"t(+ to t#( "ss(ss((. 16. /#oug# s($tion 127 (='r(ssl% 'rovi+(+ for r($or+ing of r("sons it +i+ not (='r(ssl% 'rovi+( $o11uni$"ting t#( s"1( to t#( "ss(ss((. Still; t#is Court #(l+ t#"t su$# "

$o11uni$"tion is 1"n+"tor%.
&10. /#( r("son for r($or+ing of r("sons in t#( or+(r "n+ 1"Eing t#(s( r("sons Eno!n to t#( "ss(ss(( is to (n"3l( "n o''ortunit% to t#( "ss(ss(( to "''ro"$# t#( 4ig# Court un+(r its !rit 0uris+i$tion un+(r Arti$l( 226 of t#( Constitution or (v(n t#is Court un+(r Arti$l( 136 of t#( Constitution in "n "''ro'ri"t( $"s( for $#"ll(nging t#( or+(r; int(r "li"; (it#(r on t#( groun+ t#"t it is 1"l" fi+( or "r3itr"r% or t#"t it is 3"s(+ on irr(l(v"nt "n+ (=tr"n(ous $onsi+(r"tions. 8#(t#(r su$# " !rit or s'($i"l l("v( "''li$"tion ulti1"t(l% f"ils is not r(l(v"nt for " +($ision of t#( Au(stion. 11. 8( "r( $l("rl% of o'inion t#"t t#( r(Auir(1(nt of r($or+ing r("sons un+(r S($tion 127(1) is " 1"n+"tor% +ir($tion un+(r t#( l"!.?

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17. *n our vi(!; su$# " $on$lusion 1ust 3( un+(rstoo+ in t#( lig#t of t#( o3s(rv"tion of t#( Court t#"t t#(r( !"s no 'rovision of "''("l or r(vision un+(r t#( *n$o1( /"= A$t "g"inst "n or+(r of tr"nsf(r. 5or t#( s"1( r("son; t#is

Court +istinguis#(+ "n+ +($lin(+ to follo! "n ("rli(r 0u+g1(nt in S. Narayanappa v. The Co Inco issioner of

e!tax A*. 1267 SC @23 !#(r( t#is Court on "n

int(r'r(t"tion of S($tion 3: of t#( *n$o1( /"= A$t; 1222; o'in(+ to t#( $ontr". S($tion 3: 'rovi+(+ for r(-o'(ning of t#( "ss(ss1(nt !it# t#( 'rior s"n$tion of t#(

Co11ission(r; if t#( in$o1( t"= offi$(r #"s Hr("sons to 3(li(v(B t#"t t"="3l( in$o1( #"+ 3((n un+(r-"ss(ss(+. D("ling !it# t#( Au(stion !#(t#(r t#( r("sons !#i$# l(+ t#( Co11ission(r to "$$or+ s"n$tion for t#( initi"tion of 'ro$((+ings un+(r s($tion 3: "r( r(Auir(+ to 3(

$o11uni$"t(+ to t#( "ss(ss((; t#is Court #(l+ C >/#(r( is no r(Auir(1(nt in "n% of t#( 'rovisions
of t#( A$t or "n% s($tion l"%ing +o!n "s " $on+ition for t#( initi"tion of t#( 'ro$((+ings t#"t t#( r("sons !#i$# in+u$(+ t#( Co11ission(r to "$$or+ s"n$tion to 'ro$((+ un+(r S.3: 1ust 3( $o11uni$"t(+ to t#( "ss(ss((.?

18. *n Ajantha Industries case" Narayanappa#s case !"s +istinguis#(+ on t#( groun+ C
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?8#(n "n or+(r un+(r S($tion 3: is 1"+( t#( "ggri(v(+ "ss(ss(( $"n "git"t( t#( 1"tt(r in "''("l "g"inst t#( "ss(ss1(nt or+(r; 3ut "n "ss(ss(( "g"inst !#o1 "n or+(r of tr"nsf(r is 1"+( #"s no su$# r(1(+% un+(r t#( A$t to Au(stion t#( or+(r of tr"nsf(r. (si+(s; t#( "ggri(v(+ "ss(ss(( on r($(i't of t#( noti$( un+(r S($tion 3: 1"% (v(n s"tisf% t#( *n$o1(-t"= -ffi(r t#"t t#(r( !(r( no r("sons for r(o'(ning t#( "ss(ss1(nt. Su$# "n o''ortunit% is not "v"il"3l( to "n "ss(ss(( un+(r S($tion 127(1) of t#( A$t. /#( "3ov( +($ision is; t#(r(for(; $l("rl% +istinguis#"3l(.? 12. 8( r(0($t t#( su31ission of t#( "''(ll"nt for t#( follo!ing r("sons. 5irstl%; t#(r( is no (='r(ss st"tutor%

r(Auir(1(nt to $o11uni$"t( t#( r("sons !#i$# l(+ to t#( issu"n$( of noti$( un+(r S($tion 6 of t#( A$t. S($on+l%; t#( r("sons; t#oug# not initi"ll% su''li(+ "long!it# t#( noti$( +"t(+ :.3.1277; !(r( su3s(Au(ntl% su''li(+

t#(r(3% (n"3ling t#( "''(ll"nt to (ff($tiv(l% 1((t t#( $"s( of t#( r(s'on+(nts. /#ir+l%; !( "r( of t#( o'inion

t#"t t#( $"s( on #"n+ is sAu"r(l% $ov(r(+ 3% t#( r"tio of Narayanappa case. /#( "''(ll"nt $oul+ #"v(

(ff($tiv(l% $onvin$(+ t#( r(s'on+(nts 3% 'ro+u$ing t#( "''ro'ri"t( 1"t(ri"l t#"t furt#(r st('s in furt#(r"n$( to t#( noti$( un+(r S($tion 6 n((+ not 3( t"E(n. A'"rt fro1 t#"t; "n or+(r of forf(itur( is "n "''("l"3l( or+(r !#(r( t#( $orr($tn(ss of t#( +($ision un+(r S($tion 7 to forf(it
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t#( 'ro'(rti(s $oul+ 3( (="1in(+.

8( +o not s((

"n%t#ing in t#( r"tio of Ajantha Industries case !#i$# l"%s +o!n " univ(rs"l 'rin$i'l( t#"t !#(n(v(r " st"tut( r(Auir(s so1( r("sons to 3( r($or+(+ 3(for( initi"ting "$tion; t#( r("sons 1ust n($(ss"ril% 3( $o11uni$"t(+. 20. No!; !( +("l !it# t#( s($on+ su31ission. /#( A$t (n"3l(s t#( Iov(rn1(nt of *n+i" to forf(it >ill(g"ll% "$Auir(+ 'ro'(rt%? of "n% '(rson to !#o1 t#( A$t is 1"+( "''li$"3l(. /#( A$t is 1"+( "''li$"3l( to t#( '(rsons

s'($ifi(+ in s($tion 2(2)3. 5iv( $"t(gori(s of '(rsons "r(

.

Section 2. /pplication0(1) The pro"isions of this /ct shall apply only to the persons specified in sub-section (2). (2) The persons referred to in sub-section(1) are the followin)! namely10 (a) e"ery person0 (i) who has been con"icted under the Sea 2ustoms /ct! 1'%' (' of 1'%')! or the 2ustoms /ct! 1$62 (32 of 1$62)! of an offence in relation to )oods of a "alue e4ceedin) one lakh of rupees5 or (ii) who has been con"icted under the 6orei)n 74chan)e 8e)ulation /ct! 1$9% (% of 1$9%)! or the 6orei)n 74chan)e 8e)ulation /ct! 1$%. (96 of 1$%.)! of an offence! the amount of "alue in"ol"ed in which e4ceeds one lakh of rupees5 or (iii) who ha"e been con"icted under the Sea 2ustoms /ct! 1'%' (' of 1'%')! or the 2ustoms /ct! 1$62 (32 of 1$62)! has been con"icted subse#uently under either of those /cts5 or (i") who ha"in) been con"icted under the 6orei)n 74chan)e 8e)ulation /ct! 1$9% (% of 1$9%)! or the 6orei)n 74chan)e 8e)ulation /ct! 1$%. (96 of 1$%.)! has been con"icted subse#uently under either of those /cts5 (b) e"ery person in respect of whom an order of detention has been made under the 2onser"ation of 6orei)n 74chan)e and pre"ention of Smu))lin) /cti"ities /ct! 1$%9 (32 of 1$%9)1 :ro"ided that0 (i) such order of detention bein) an order to which the pro"isions of section $ or section 12/ of the said /ct do not apply! has not been re"oked on the report of the /d"isory ;oard under section ' of the said /ct or before the receipt of the report of the /d"isory ;oard or before makin) a reference to the /d"isory ;oard5 or (ii) such order of detention bein) an order to which the pro"isions of section $ of the said /ct apply! has not been re"oked before the e4piry of the time for! or on the basis of! the re"iew under sub-section (.) of section $

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$ov(r(+ t#(r(un+(r. Cl"us( (") C '(rsons !#o #"v( 3((n $onvi$t(+ un+(r v"rious (n"$t1(nts r(f(rr(+ to t#(r(inG $l"us( (3) - '(rsons in r(s'($t of !#o1 "n or+(r of +(t(ntion #"s 3((n 1"+( un+(r t#( C-5<P-SA (su30($t to $(rt"in $on+itionsJ(=$('tions t#( +(t"ils of !#i$# "r( not
or on the report of the /d"isory ;oard under section '! read with subsection (2) of section $ of the said /ct5 or such order of detention! bein) an order to which the pro"isions of section 12/ of the said /ct apply! has not been re"oked before the e4piry of the time for! or on the basis of! the first re"iew under sub-section (.) of that section! or on the basis of the report of the /d"isory ;oard under section '! read with sub-section (6) of section 12/! of that /ct5 or such order of detention has not been set aside by a court of competent <urisdiction5 e"ery person who is a relati"e of a person referred to in clause (a) or clause

(iii)

(i") (c) (b)5 (d) (e)

e"ery associate of person referred to in clause (a) or clause (b)5 any holder of any property which was at any time pre"iously held by a person referred to in clause (a) or clause (b) unless the present holder or! as the case may be! any one who held such property after such person and before the present holder! is or was a transferee in )ood faith for ade#uate consideration.

74planation 1.0 6or the purposes of sub-clause (i) of clause (a)! the "alue of any )oods in relation to which a person has been con"icted of an offence shall be the wholesale price of the )oods in the ordinary course of trade in &ndia as on the date of the commission of the offence. 74planation 2.0 6or the purpose of clause =! >relati"e? in relation to a person! means0 (i) (ii) (iii) (i") (") ("i) (")5 ("ii) means0 (i) (ii) (iii) (i") any indi"idual who had been or is residin) in the residential premises (includin) out houses) of such person5 any indi"idual who had been or is mana)in) the affairs or keepin) the accounts of such person5 any association of persons! body of indi"iduals! partnership firms! or pri"ate company within the meanin) of the 2ompanies /ct! 1$36 (1 of 1$36)! of which such person had been or is a member! partner or director5 any indi"idual who had been or is a member! partner or director of an association of persons! body of indi"iduals! partnership firm! or pri"ate company within the meanin) of the 2ompanies when such person had been or is a member! any lineal descendant of a person referred to in clause (ii) or clause (iii). 74planation ..0 6or the purposes of clause (d)! >associate?! in relation to a person! spouse of the person5 brother or sister of the person5 brother or sister of the spouse of person5 any lineal ascendant or descendant of the person5 any lineal ascendant or descendant of the spouse of the person5 spouse of a person referred to in clause (ii)! clause (iii)! clause (i") or clause

12 Page 12

n($(ss"r% for our 'ur'os()G $l"us( ($) C '(rsons !#o "r( r(l"tiv(s of '(rsons r(f(rr(+ to in $l"us( (") or $l"us( (3). <='r(ssion >r(l"tiv(? is its(lf (='l"in(+ in (='l"n"tion 2. Cl"us( (+) C (v(r% "sso$i"t( of '(rsons r(f(rr(+ to in $l"us( (") or $l"us( (3). -n$( "g"in t#( (='r(ssion

>"sso$i"t(? is (='l"in(+ un+(r (='l"n"tion 3 to su3s($tion (2). Cl"us( (() C su3s(Au(nt #ol+(rs of 'ro'(rt% !#i$# "t so1( 'oint of ti1( 3(long(+ to '(rsons r(f(rr(+ to (it#(r in $l"us( (") or $l"us( (3). 21. S($tion : 1"E(s it unl"!ful (for "n% '(rson to !#o1 t#( A$t "''li(s) to #ol+ "n% ill(g"ll% "$Auir(+ 'ro'(rt% "n+ it furt#(r +($l"r(s t#"t su$# 'ro'(rt% s#"ll 3( li"3l( to 3( forf(it(+ to t#( C(ntr"l Iov(rn1(nt (follo!ing t#(

'ro$(+ur( 'r(s$ri3(+ un+(r t#( A$t).

(") ("i)

/#( 'ro$(+ur( is

("ii)

partner or director of such association! body! partnership firm of a pri"ate company5 any person who had been or is mana)in) the affairs! or keepin) the accounts! of any association of persons! body of indi"iduals! partnership firm or pri"ate company referred to in clause (iii)5 the trustee of any trust! where!0 (a) the trust has been created by such person5 or (b) the "alue of the assets contributed by such person (includin) the "alue of the assets! if any! contributed by him earlier) to the trust amounts! on the date on which the contribution is made! to not less than twenty per cent! of the "alue of the assets of the trust on that date5 where the competent authority! for reasons to be recorded in writin) considers that any properties of such person are held on his behalf by any other person! such other person.

74planation 9.0 6or the a"oidance of doubt! it is hereby pro"ided that the #uestion whether any person is a person to whom the pro"isions of this /ct apply may be determined with reference to any facts! circumstances or e"ents includin) any con"iction or detention which occurred or took place before the commencement of this /ct.

13 Page 13

$ont"in(+ un+(r s($tions 6 "n+ 7 of t#( A$t. S($tion 8 'r(s$ri3(s t#( s'($i"l rul( of (vi+(n$( !#i$# s#ifts t#( 3ur+(n of 'roving t#"t "n% 'ro'(rt% s'($ifi(+ in t#( noti$( un+(r s($tion 6 is not ill(g"ll% "$Auir(+ 'ro'(rt% of t#( noti$((. S($tion 6 inter alia 'ostul"t(s t#"t #"ving r(g"r+ to t#( v"lu( of t#( 'ro'(rt% #(l+ 3% "n% '(rson (to !#o1 t#( A$t "''li(s) "n+ #is Eno!n sour$(s of in$o1(; if t#( >$o1'(t(nt "ut#orit%? (notifi(+ un+(r s($tion @) #"s r("son to 3(li(v( t#"t su$# 'ro'(rti(s "r( >ill(g"ll% "$Auir(+ 'ro'(rti(s?; t#( $o1'(t(nt "ut#orit% is

"ut#oriK(+ to $"ll u'on t#( #ol+(r of t#( 'ro'(rt% to Hin+i$"t(B t#( sour$( of #is in$o1( (t$. !#i$# (n"3l(+ t#( "$Auisition (vi+(n$(. of su$# 'ro'(rt% "long !it# n($(ss"r%

*t "lso "ut#oriK(s t#( $o1'(t(nt "ut#orit% to

$"ll u'on t#( noti$(( to s#o! $"us( "s to !#% "ll or "n% of su$# 'ro'(rti(s 1(ntion(+ in t#( noti$( s#oul+ not 3( +($l"r(+ ill(g"ll% "$Auir(+ 'ro'(rti(s "n+ 3( forf(it(+ to t#( C(ntr"l Iov(rn1(nt. S($tion 7 'rovi+(s for "

r("son"3l( o''ortunit% of 3(ing #("r+ "ft(r t#( r($(i't of r(s'ons( to t#( noti$( un+(r s($tion 6 to t#( noti$(( "n+ r(Auir(s t#( $o1'(t(nt "ut#orit% to r($or+ " fin+ing

14 Page 14

!#(t#(r "ll or "n% of t#( 'ro'(rti(s in Au(stion "r( ill(g"ll% "$Auir(+ 'ro'(rti(s. S($tion 7 "lso 'rovi+(s for $(rt"in in$i+(nt"l 1"tt(rs t#( +(t"ils of !#i$# "r( not n($(ss"r% for t#( 'r(s(nt 'ur'os(. 22. <='r(ssion >ill(g"ll% "$Auir(+ 'ro'(rt%? is +(fin(+ in (l"3or"t( t(r1s un+(r t#( A$t :. ro"+l% s'("Eing t#(

+(finition $ov(rs t!o t%'(s of 'ro'(rti(s9 1) 2) "$Auir(+ 3% t#( in$o1( or ("rningsG "n+ "ss(ts +(riv(+ or o3t"in(+

Section .(c) >ille)ally ac#uired property?! in relation to any person to whom this /ct applies! means! 0 (i) any property ac#uired by such person! whether before or after the commencement of this /ct! wholly or partly out of or by means of any income! earnin)s or assets deri"ed or obtained from or attributable to any acti"ity prohibited by or under any law for the time bein) in force relatin) to any matter in respect of which :arliament has power to make laws5 or (ii) any property ac#uired by such person! whether before or after the commencement of this /ct! wholly or partly out of or by means of any income! earnin)s or assets in respect of which any such law has been contra"ened5 or (iii) any property ac#uired by such person! whether before or after the commencement of this /ct! wholly or partly out of or by means of any income! earnin)s or assets the source of which cannot be pro"ed and which cannot be shown to be attributable to any act or thin) done in respect of any matter in relation to which :arliament has no power to make laws5 or (i") any property ac#uired by such person! whether before or after commencement of this /ct! for a consideration! or by any means! wholly or partly traceable to any property referred to in sub-clauses (i) to (ii) or the income or earnin)s from such property5 and includes0t (/) any property held by such person which would ha"e been! in relation to any pre"ious holder thereof! ille)ally ac#uired property under this clause if such pre"ious holder had not ceased to hold it! unless such person or any other person who held the property at any time after such pre"ious holder or! where there are two or more such pre"ious holders! the last of such pre"ious holders is or was a transferee in )ood faith for ade#uate consideration5 (;) any property ac#uired by such person! whether before or after the commencement of this /ct! for a consideration! or by any means! wholly or partly traceable to any property fallin) under item (/)! or the income or earnin)s therefrom.

15 Page 15

fro1 or "ttri3ut"3l( to "n% "$tivit% !#i$# is 'ro#i3it(+ 3% or un+(r " l"! in for$(. Su$# l"! 1ust 3( " l"! !it#

r(s'($t to !#i$# '"rli"1(nt #"s t#( 'o!(r to 1"E( l"!. A $o1'l(t( "n"l%sis of t#( +(finition in "ll its f"$(ts 1"% not 3( n($(ss"r% for our 'ur'os(. 23. 5ro1 t#( l"ngu"g( "n+ t#( s$#(1( of t#( A$t it +o(s not "''("r t#"t t#( "''li$"tion of t#( A$t is li1it(+ to '(rsons !#o (it#(r suff(r(+ " $onvi$tion un+(r on( of t#( "$ts s'($ifi(+ in s($tion 2(2)(") t#( A$t or +(t"in(+ un+(r t#( C-5<P-SA su3s(Au(nt to t#( $o11(n$(1(nt of t#( A$t in Au(stion. -n t#( ot#(r #"n+; (='l"n"tion : to

s($tion 2 (='r(ssl% +($l"r(s "s follo!s9

>Explanation 4.L5or t#( "voi+"n$( of +ou3t; it is #(r(3% 'rovi+(+ t#"t t#( Au(stion !#(t#(r "n% '(rson is " '(rson to !#o1 t#( 'rovisions of t#is A$t "''l% 1"% 3( +(t(r1in(+ !it# r(f(r(n$( to "n% f"$ts; $ir$u1st"n$(s or (v(nts (in$lu+ing "n% $onvi$tion or +(t(ntion !#i$# o$$urr(+ or tooE 'l"$( 3(for( t#( $o11(n$(1(nt of t#is A$t).?

A'"rt fro1 t#"t !( #"v( "lr("+% t"E(n not( of t#( f"$t t#"t t#(r( "r( ot#(r $"t(gori(s of '(rsons to !#o1 t#( A$t "''li(s. 2:. /#( "''(ll"nt #"''(ns to 3( " '(rson to !#o1 t#( A$t "''li(s. 4( !"s +(t"in(+ un+(r t#( 'rovisions of t#(

16 Page 16

C-5<P-SA. 4o!(v(r; su$# " +(t(ntion !"s "nt(rior to t#( $o11(n$(1(nt of t#( A$t; !#i$# $"1( into for$( on 2@ t# F"nu"r% 1276; !#il( t#( +(t(ntion or+(r !"s '"ss(+ on 12t# D($(13(r 127:. *t "''("rs fro1 t#( 0u+g1(nt un+(r "''("l t#"t t#( "''(ll"nt !"s (v(ntu"ll% s(t "t li3(rt% in 1277. 2@. S($tion 7(3) of t#( A$t 'rovi+(s for forf(itur( of t#( ill(g"ll% "$Auir(+ 'ro'(rt% of t#( '(rsons to !#o1 t#( A$t is 1"+( "''li$"3l( "ft(r "n "''ro'ri"t( (nAuir%

$ont(1'l"t(+ un+(r S($tions 6 "n+ 7 of t#( A$t. *n ot#(r !or+s; t#( A$t 'rovi+(s for t#( +('riv"tion of t#( (ill(g"ll% "$Auir(+) 'ro'(rt% of t#( '(rsons to !#o1 t#( A$t "''li(s. /#( Au(stion !#i$# !( !(r( $"ll(+ u'on to +("l !it# is !#(t#(r su$# " +('riv"tion is $onsist(nt !it# Arti$l( 20@ of t#( Constitution of *n+i" in t#( s'($ifi$ f"$tu"l s(tting of t#( $"s( $ou'l(+ !it# t#( (='l"n"tion : to s($tion 2 !#i$# r("+s "s follo!s9
>Explanation 4.L5or t#( "voi+"n$( of +ou3t; it is #(r(3% 'rovi+(+ t#"t t#( Au(stion !#(t#(r "n% '(rson is "
3 20. P rot ec ti on in re sp ec t of conv ic tio n fo r off en ce s. (1) No pe rson sh al l b e c on"i ct ed of a ny of fe nc e e 4c ept for "io la tion of a la w in for ce at the t im e of the com mi ss ion of the /c t c ha r)e d as an of fe nc e! nor be sub <e ct ed to a pena lty )r ea te r tha n th at whi ch mi )ht ha"e b een in fli ct ed unde r th e la w in fo rc e at th e tim e of th e com mi ss io n of th e of fe nc e. (2 ) No p er son sha ll be pro se cu te d a nd puni she d fo r the sa me of fen ce mor e tha n on ce . (. ) No p er son a cc us ed of any of fe nc e sha ll be co mp el led to be a wi tne ss a )a ins t hi ms el f.

17 Page 17

'(rson to !#o1 t#( 'rovisions of t#is A$t "''l% 1"% 3( +(t(r1in(+ !it# r(f(r(n$( to "n% f"$ts; $ir$u1st"n$(s or (v(nts (in$lu+ing "n% $onvi$tion or +(t(ntion !#i$# o$$urr(+ or tooE 'l"$( 3(for( t#( $o11(n$(1(nt of t#is A$t).?

/#( "ns!(r to t#( Au(stion +('(n+s u'on !#(t#(r su$# +('riv"tion is " '(n"lt% !it#in t#( 1("ning of t#( s"i+ (='r(ssion o$$urring in Arti$l( 20. 26. Arti$l( 20 $ont"ins on( of t#( 1ost 3"si$ gu"r"nt((s to t#( su30($ts of t#( .('u3li$ of *n+i". /#( Arti$l( in so f"r "s is r(l(v"nt for our 'ur'os( sti'ul"t(s t!o t#ings9 /#"t no '(rson s#"ll 3( $onvi$t(+ of "n% off(n$( (=$('t for viol"tion of t#( l"! in for$( "t t#( ti1( of t#( $o11ission of t#( "$t $#"rg(+ "s "n off(n$(G "n+ /#"t no '(rson s#"ll 3( su30($t(+ to " '(n"lt% gr("t(r t#"n t#"t !#i$# 1ig#t #"v( 3((n infli$t(+ un+(r t#( l"! in for$( "t t#( ti1( of t#( $o11ission of t#( off(n$(. 27. *t is " !(ll s(ttl(+ 'rin$i'l( of $onstitution"l l"! t#"t sov(r(ign l(gisl"tiv( 3o+i(s $"n 1"E( l"!s !it#

r(tros'($tiv( o'(r"tionG "n+ $"n 1"E( l"!s !#os( o'(r"tion is +('(n+(nt u'on f"$ts or (v(nts "nt(rior to t#( 1"Eing of t#( l"!. 4o!(v(r; $ri1in"l l"! is (=$('t(+ fro1 su$# g(n(r"l .ul(; un+(r "not#(r (Au"ll% !(ll s(ttl(+ 'rin$i'l( of $onstitution"l l"!; i.(. no ex post facto
18 Page 18

l(gisl"tion is '(r1issi3l( !it# r(s'($t to $ri1in"l l"!. Arti$l( 20 $ont"ins su$# (=$('tion to t#( g(n(r"l "ut#orit% of t#( sov(r(ign l(gisl"tur( fun$tioning un+(r t#(

Constitution to 1"E( r(tros'($tiv( or r(tro"$tiv( l"!s. 28. /#( su31ission of t#( "''(ll"nt is t#"t sin$( t#( A$t 'rovi+(s for " forf(itur( of t#( 'ro'(rt% of t#( "''(ll"nt on t#( groun+ t#"t t#( "''(ll"nt !"s +(t"in(+ un+(r t#( C-5<P-SA; t#( 'ro'os(+ forf(itur( is not#ing 3ut " '(n"lt% !it#in t#( 1("ning of t#( (='r(ssion un+(r Arti$l( 20 of t#( Constitution. Su$# "n inf(r(n$( is in(vit"3l( in t#( lig#t of t#( +(finition of >ill(g"ll% "$Auir(+ 'ro'(rt%? !#i$# 3% +(finition (un+(r t#( A$t) is 'ro'(rt% "$Auir(+ (it#(r >out of? or 3% 1("ns >of "n% in$o1(; ("rnings &? >o3t"in(+ fro1 or "ttri3ut"3l( to "n% "$tivit% 'ro#i3it(+ 3% or un+(r "n% l"! &?. -n t#( ot#(r #"n+; if t#( forf(itur( $ont(1'l"t(+ 3% t#( A$t is not tr("t(+ "s " '(n"lt% for t#( "ll(g(+ viol"tion of l"! on t#( '"rt of t#( "''(ll"nt; it !oul+ 3( 'l"in $onfis$"tion of t#( 'ro'(rt% of t#( "''(ll"nt 3% t#( St"t( !it#out "n% f"$tu"l 0ustifi$"tion or t#( $onstitution"l "ut#orit%.

19 Page 19

22. /#( l("rn(+ $ouns(l for t#( "''(ll"nt furt#(r "rgu(+ t#"t t#( forf(itur( $ont(1'l"t(+ un+(r t#( A$t !#(t#(r 3"s(+ on 'rov(n guilt or sus'i$ion of involv(1(nt in " $(rt"in s'($ifi(+ "$tivit% 'ro#i3it(+ 3% t#( Custo1s A$t $"n onl% 3( " H'(n"lt%B "ttr"$ting t#( 'ro#i3ition of Arti$l( 20 of t#( Constitution of *n+i". *t is su31itt(+ t#"t un+(r S($tion @36 of t#( *n+i"n P(n"l Co+(; forf(itur( of 'ro'(rt% is on( of t#( 'r(s$ri3(+ 'unis#1(nts for so1( of t#( off(n$(s $ov(r(+ un+(r t#( *n+i"n P(n"l Co+(. 30. L("rn(+ $ouns(l for t#( "''(ll"nt 'l"$ing r(li"n$( on R.S. $oshi" Sales Tax %fficer" &ujarat and %thers v. Ajit 'ills (td. and Another" (1277) : SCC 28 su31itt(+ t#"t " Constitution (n$# of t#is Court "lso o'in(+ t#(

(='r(ssion >forf(itur(? to 1("n >" '(n"lt% for 3r("$# of " 'ro#i3itor% +ir($tion?.7
6

Section 3.. :unishments.0The punishments to which offenders are liable under the pro"isions of this 2ode are0 First eath5 Secondly.&mprisonment for life5 Thirdly. (mitted Fourthly.&mprisonment! which is of two descriptions! namely.0 (1) 8i)orous! that is! with hard labour5 (2) Simple5 Fifthly.06orfeiture of property5 Sixthly.6ine.
%

18. 2omin) to >forfeiture@! what is the true character of a >forfeiture@A &s it puniti"e in infliction! or merely another form of e4action of money by one from anotherA &f it is penal! it falls within implied powers. &f it is an act of mere transference of money from the dealer to the State! then it falls outside the le)islati"e entry. Such is the essence of the decisions which we will presently consider. There was a contention that the e4pression >forfeiture? did not denote a penalty. This! perhaps! may ha"e to be decided in the specific settin) of a statute. ;ut! speakin) )enerally! and ha"in) in mind the ob<ect of

20 Page 20

31. -n t#( ot#(r #"n+; t#( l("rn(+ A++l. Soli$itor I(n(r"l "''("ring for t#( r(s'on+(nt su31itt(+ t#"t t#( forf(itur( $ont(1'l"t(+ un+(r t#( A$t is not " H'(n"lt%B !it#in t#( 1("ning of t#"t (='r(ssion o$$urring in Arti$l( 20 3ut onl% " +('riv"tion of 'ro'(rt% of " l(gisl"tiv(l% i+(ntifi(+ $l"ss
Section .% read with Section 96! we are inclined to the "iew that forfeiture has a puniti"e impact. ;lack@s -e)al ictionary states that >to forfeit? is >to lose! or lose the ri)ht to! by! some error, fault, offence or crime, >to incur a penalty@. >6orfeiture@! as <udicially annotated! is >a punishment anne4ed by law to some ille)al act or ne)li)ence . . .@. >somethin) imposed as a punishment for an offence or delin#uency@. The word! in this sense! is fre#uently associated with the word >penalty@. /ccordin) to Blacks Legal Dictionary! The terms >fine?! >forfeiture?! and >penalty?! are often used loosely! and e"en confusedly 1 but when a discrimination is made! the word >penalty? is found to be )eneric in its character! includin) both fine and forfeiture. / >fine? is a pecuniary penalty! and is commonly (perhaps always) to be collected by suit in some form. / >forfeiture? is a penalty by which one loses his ri)hts and interest in his property. Bore e4plicitly! the C.S. Supreme 2ourt has e4plained the concept of >forfeiture? in the conte4t of statutory construction. 2hief +ustice Taney! in the State of Maryland ". Baltimore !hio "" #o., 11 -.7d. %19! %22 obser"ed 1 >/nd a pro"ision! as in this case! that the party shall forfeit a particular sum! in case he does not perform an act re#uired by law! has always! in the construction of statutes! been re)arded not as a contract with the delin#uent party! but as the punishment for an offence. Cndoubtedly! in the case of indi"iduals! the word forfeit is construed to be the lan)ua)e of contract! because contract is the only mode in which one person can become liable to pay a penalty to another for breach of duty! or the failure to perform an obli)ation. &n le)islati"e proceedin)s! howe"er! the construction is otherwise! and a forfeiture is always to be re)arded as a punishment inflicted for a "iolation of some duty en<oined upon the party by law 5 and such! "ery clearly! is the meanin) of the word in the act in #uestion.? 19. The same connotation has been imparted by our 2ourt too. / ;ench has held D Bankura Munici$ality %.Lal&i "a&a Sons, 1$3. 2ri -+ 11E1F 1 >/ccordin) to the dictionary meanin) of the word Gforfeiture@ the loss or the depri"ation of )oods has )ot to be in conse#uence of a crime! offence or breach of en)a)ement or has to be by way of penalty of the trans)ression or a punishment for an offence. Cnless the loss or depri"ation of the )oods is by way of a penalty or punishment for a crime! offence or breach of en)a)ement it would not come within the definition of forfeiture.? This word >forfeiture? must bear the same meanin) of a penalty for breach of a prohibitory direction. The fact that there is arithmetical identity! assumin) it to be so! between the fi)ures of the ille)al collections made by the dealers and the amounts forfeited to the State cannot create a conceptual confusion that what is pro"ided is not punishment but a transference of funds. &f this "iew be correct! and we hold so! the le)islature! by inflictin) the forfeiture! does not )o outside the crease when it hits out a)ainst the dealer and depri"es him! by the penalty of the law! of the amount ille)ally )athered from the customers. The 2riminal :rocedure 2ode! 2ustoms H 74cise -aws and se"eral other penal statutes in &ndia ha"e used diction which accepts forfeiture as a kind of penalty. *hen discussin) the rulin)s of this 2ourt we will e4plore whether this true nature of >forfeiture? is contradicted by anythin) we can find in Sections .%(1)! 96 or 6.. 7"en here we may re<ect the notion that a penalty or a punishment cannot be cast in the form of an absolute or no-fault liability but must be preceded by mens rea. The classical "iew that >no mens rea! no crime? has lon) a)o been eroded and se"eral laws in &ndia

21 Page 21

of '(rsons C in t#( (v(nt of t#(ir in"3ilit% to (='l"in (to t#( s"tisf"$tion of t#( St"t() t#"t t#(% #"+ l(giti1"t( sour$(s of fun+s for t#( "$Auisition of su$# 'ro'(rt%. /#( l("rn(+ A++l. Soli$itor I(n(r"l furt#(r su31itt(+ t#"t !#il( in t#( $"s( of t#"t $l"ss of '(rsons $ov(r(+ un+(r S($tion 2(2) (") of t#( A$t; t#( forf(itur( t#oug# #"s " r(1ot( $onn($tion !it# t#( $o11ission of " $ri1( "n+ $onvi$tionG !it# r(f(r(n$( to t#( ot#(r four $l"ss(s of '(rsons to !#o1 t#( A$t is 1"+( "''li$"3l( un+(r S($tion 2(2) (3) to ((); t#( forf(itur( #"s not#ing to +o !it# "n% $ri1( or $onvi$tion. /#(r(for(; to s"% t#"t t#( forf(itur( un+(r t#(

A$t is #it 3% t#( 'ro#i3ition un+(r Arti$l( 20 is !it#out "n% 3"sis in l"!. /#( l("rn(+ A++l. Soli$itor I(n(r"l "lso

r(li(+ u'on The State of )est Ben*al v. S.+. &hosh% [A*. 1263 SC 2@@] "n+ R.S. $oshi (su'r") in su''ort of #is su31ission. Alt(rn"tiv(l%; t#( l("rn(+ A++l. Soli$itor

I(n(r"l su31itt(+ t#"t in vi(! of t#( f"$t t#"t t#( A$t is in$lu+(+ in t#( Nint# S$#(+ul(; t#( A$t is i11un( fro1 "n% "tt"$E on t#( groun+ t#"t it viol"t(s "n% on( of t#(

and abroad! especially re)ardin) economic crimes and departmental penalties! ha"e created se"ere punishments e"en where the offences ha"e been defined to e4clude mens rea. Therefore! the contention that Section .%(1) fastens a hea"y liability re)ardless of fault has no force in depri"in) the forfeiture of the character of penalty.

22 Page 22

fun+"1(nt"l rig#ts $ont"in(+ in P"rt *** of t#( Constitution of *n+i"; "s !"s #(l+ 3% " Constitution (n$# of t#is Court ratlal

in Attorney &eneral for India , %thers v. A -rajivandas and others (122:) @ SCC @:.

32. Lor+ Ir((n in Bidie v. &eneral Accident" .ire and (ife Assurance Corporation [(12:8) 2 All <. 22@ "t 228] s"i+ in t#( $ont(=t of "s$(rt"ining t#( 1("ning of "n (='r(ssion in "n% st"tut( t#"t >5(! !or+s in t#( <nglis# l"ngu"g( #"v( " n"tur"l or or+in"r% 1("ning in t#( s(ns( t#"t t#(% 1ust 3( so r("+ t#"t t#(ir 1("ning is (ntir(l% in+('(n+(nt of t#(ir $ont(=t?. 33. C#i(f Fusti$( SiEri in /is /oliness +esavananda Bharati Sripada*alvaru v. State of +erala and another (1273) : SCC 22@ +!(lt on t#is su30($t r(f(rring to t!o <nglis# +($isions "n+ on( A1(ri$"n +($ision st"ting in su3st"n$( t#"t t#( 1("ning of " !or+ o$$urring in " st"tut( $"nnot 3( "s$(rt"in(+ !it#out (="1ining t#( $ont(=t "n+ "lso t#( s$#(1( of t#( A$t in !#i$# t#( (='r(ssion o$$urs.8
'

36. &n construin) the e4pression >amendment of this 2onstitution? & must look at the whole scheme of the 2onstitution. &t is not ri)ht to construe words in "acuum and then insert the meanin) into an article. -ord Ireen obser"ed in Bidie %. 'eneral (ccident, Fire and Life (ssurance #or$oration (1$9') 2 /ll 78 $$3! $$'.

23 Page 23

3:. /#( r(gi1( of forf(itur( of 'ro'(rt% $ont(1'l"t(+ un+(r t#( A$t is not n(!. At l("st fro1 12:: su$# "

r(gi1( (t#oug# not i+(nti$"l 3ut si1il"r to t#( i1'ugn(+ on() is 'r(v"l(nt in t#is $ountr%. /!o or+in"n$(s !(r(

1"+( in 12:3 "n+ 12::; su3s(Au(ntl% "1(n+(+ 3% "not#(r or+in"n$( in 12:@; "ll $"ll(+ Cri1in"l L"! A1(n+1(nt -r+in"n$(s; !#i$# $ontinu(+ to 3( in for$( in t#is $ountr% 3% virtu( of o'(r"tion of Arti$l( 372 "n+ so1( "nt(rior l"!s - t#( +(t"ils of !#i$# 1"% not 3( n($(ss"r% for t#( 'r(s(nt 'ur'os(. )n+(r t#( 12:3 -r+in"n$(; t!o

>The first thin) one has to do! & "enture to think! in construin) words in a Section of an /ct of :arliament is not to take those words in %acuo, so to speak! and attribute to them what is sometimes called their natural or ordinary meanin). 6ew words in the 7n)lish lan)ua)e ha"e a natural or ordinary meanin) in the sense that they must be so read that their meanin) is entirely independent of their conte4t. The method of construin) statutes that & prefer is not to take particular words and attribute to them a sort of prima facie meanin) which you may ha"e to displace or modify. &t is to read the statute as a whole and ask oneself the #uestion 1 G&n this state! in this conte4t! relatin) to this sub<ect-matter! what is the true meanin) of that words@.? 3%. & respectfully adopt the reasonin) of -ord Ireen in construin) the e4pression >the amendment of the 2onstitution.? 3'. -ord Ireen is not alone in this approach. (1$6%) 2 /-- 78 3%6! 3%' it is obser"ed1 &n Bourne %. )or*ich #rematorium,

>7n)lish words deri"e colour from those which surround them. Sentences are not mere collections of words to be taken out of the sentence defined separately by reference to the dictionary or decided cases! and then put back a)ain into the sentence with the meanin) which you ha"e assi)ned to them as separate words! so as to )i"e the sentence or phrase a meanin) which as a sentence or phrase it cannot bear without distortion of the 7n)lish lan)ua)e.? 3$. ,olmes! +.! in To*ne %. +isner, 293 CS 91'! 923 had the same thou)ht. ,e obser"ed 1 >/ word is not a crystal! transparent and unchan)ed5 it is the skin of li"in) thou)ht and may "ary )reatly in colour and content accordin) to the circumstances and the time in which it is used.?

24 Page 24

s'($i"l /ri3un"ls !(r( $onstitut(+ to tr% $"s(s "llott(+ to t#(1 >in t#( first S$#(+ul( in r(s'($t of su$# $#"rg(s of off(n$( 'r(s$ri3(+ un+(r t#( s($on+ S$#(+ul( (t$.?. <ss(nti"ll%; su$# $"s(s !(r( $"s(s (it#(r of $#"rg( of r($(i't of ill(g"l gr"tifi$"tion 3% " 'u3li$ s(rv"nt or (13(KKl(1(nt of 'u3li$ 1on(% (t$. /#( 12:: -r+in"n$( 'rovi+(+ for t#( "tt"$#1(nt of t#( 1on(% or ot#(r 'ro'(rt% !#i$# is 3(li(v(+ to #"v( 3((n 'ro$ur(+ 3% 1("ns of on( of t#( "3ov( 1(ntion(+ s$#(+ul(+ off(n$(s 3% t#( off(n+(r. Su$# "tt"$#(+ 'ro'(rt% is r(Auir(+ to 3( +is'os(+ of "s 'rovi+(+ un+(r s($tion 13 of t#( s"i+ -r+in"n$(. )n+(r S($tion 12 of t#( -r+in"n$(; t#(

Cri1in"l Court tr%ing " s$#(+ul(+ off(n$( is o3lig(+ to "s$(rt"in t#( "1ount or v"lu( of t#( 'ro'(rt% 'ro$ur(+ 3% t#( "$$us(+ 3% 1("ns of t#( off(n$(. )n+(r s($tion 13(3); it is 'rovi+(+ t#"t so 1u$# of t#( "tt"$#(+ 'ro'(rt% r(f(rr(+ to ("rli(r (Auiv"l(nt to t#( v"lu( "s$(rt"in(+ 3% t#( Cri1in"l Court un+(r s($tion 12 is r(Auir(+ to 3( '($'e)*e+ to t#( St"t(. 3@. D("ling !it# t#( Au(stion C !#(t#(r su$# forf(itur( (in t#( f"$tu"l s(tting of t#( $"s() viol"t(+ Arti$l( 20 of

25 Page 25

t#( Constitution of *n+i"M; " Constitution

(n$# of t#is

Court #(l+ t#"t t#( forf(itur( $ont(1'l"t(+ in t#( -r+in"n$( !"s not " '(n"lt% !it#in t#( 1("ning of Arti$l( 20 3ut it is onl% " s'((+i(r 1o+( of r($ov(r% of t#( 1on(% (13(KKl(+ 3% t#( "$$us(+.2 36. &n R.S. $oshi case; t#( Au(stion !"s !#(t#(r it !"s '(r1issi3l( for t#( St"t( L(gisl"tur( to (n"$t t#"t su1s $oll($t(+ 3% +("l(rs 3% !"% of s"l(s t"= 3ut "r( not (=igi3l( un+(r t#( St"t( L"! C in+((+ 'ro#i3it(+ 3% it C s#"ll 3( forf(it(+ to t#( (=$#(Au(r. 37. /#( Au(stion - !#(t#(r su$# " forf(itur( !"s " '(n"lt% viol"ting Arti$l( 20 +i+ not "ris( in t#( f"$ts of t#"t $"s(. /#( +is$ussion r(volv(+ "roun+ t#( Au(stion -

!#(t#(r su$# " forf(itur( is " '(n"lt% for t#( viol"tion of " 'ro#i3ition $ont"in(+ un+(r s($tion :6 of t#( r(l(v"nt S"l(s /"= A$tM /#( $ontr"v(ntion of s($tion :6 is 1"+(

'unis#"3l( !it# i1'rison1(nt "n+ fin( un+(r s($tion 63 of t#( s"i+ A$t. A'"rt fro1 t#"t; s($tion 37 of t#( s"i+ A$t
$

The State of *est ;en)al ". S.J. Ihosh! /&8 1$6. S2 233 :ara 13. .. *e are therefore of opinion that forfeiture pro"ided in S. 1.(.) in case of offences which in"ol"e the embeKKlement etc. of Io"ernment money or property is really a speedier method of realiKin) )o"ernment money or property as compared to a suit which it is not disputed the Io"ernment could brin) for realiKin) the money or property and is not punishment or penalty within the meanin) of /rticle 2E(1). Such a suit could ordinarily be brou)ht without in any way affectin) the ri)ht to realiKe the fine that may ha"e been imposed by a criminal 2ourt in connection with the offence.

26 Page 26

'rovi+(+ for " +('"rt1(nt"l 'ro$((+ing "g"inst t#( +("l(rs !#o viol"t(+ t#( 'ro#i3ition un+(r s($tion :6. /#( s"i+ +('"rt1(nt"l 'ro$((+ing $oul+ r(sult in t#( forf(itur( of >.. "n% su1s $oll($t(+ 3% "n% '(rson 3% !"% of t"= in $ontr"v(ntion of s($tion :6 ..?. /#( l(g"l issu( 3(for( t#is Court !"s C !#(t#(r t#( St"t( L(gisl"tur( #"+ n($(ss"r% $o1'(t(n$( to 'rovi+( for su$# forf(itur(M /#( "ns!(r to t#( Au(r% +('(n+(+ u'on !#(t#(r su$# " forf(itur( is " '(n"lt% for t#( viol"tion of l"! 1"+( 3% t#( St"t( for t#( l(v% "n+ $oll($tion of s"l(s t"=. *f it is not " '(n"lt% 3ut " 'l"in tr"nsf(r of 1on(% (ill(g"ll% $oll($t(+ 3% t#( +("l(r) to t#( St"t( it !oul+ 3( in$o1'(t(nt for t#( l(gisl"tur( to 1"E( su$# " 'rovision in t#( lig#t of "n ("rli(r

Constitution

(n$# +($ision of t#is Court in R. Abdul

0uader , Co. v. ST%; A*. 126: SC 222.10

1E

The first #uestion therefore that falls for consideration is whether it was open to the State le)islature under its powers under 7ntry 39 of -ist && to make a pro"ision to the effect that money collected by way of ta4! e"en thou)h it was not due as a ta4 under the /ct! shall be made o"er to Io"ernment. Now it is clear that the sums so collected by way of ta4 are not in fact ta4 e4i)ible under the /ct. So it cannot be said that the State le)islature was directly le)islatin) for the imposition of sales or purchase ta4 under 7ntry 39 of -ist && when it made such a pro"ision! for on the face of the pro"ision! the amount! thou)h collected by way of ta4! was not e4i)ible as ta4 under the law. The pro"ision howe"er is attempted to be <ustified on the )round that thou)h it may not be open to a State le)islature to make pro"ision for the reco"ery of an amount which is not a ta4 under 7ntry 39 of -ist && in a law made for that purpose! it would still be open to the le)islature to pro"ide for payin) o"er all the amounts collected by way of ta4 by persons! e"en thou)h they really are not e4i)ible as ta4! as part of the incidental and ancillary power to make pro"ision for the le"y and collection of such ta4. Now there is no dispute that the heads of le)islation in the "arious -ists in the Se"enth Schedule should be interpreted widely so as to take in all matters which are of a character incidental to the topics mentioned therein. 7"en so! there is a limit to such incidental or ancillary power flowin) from the le)islati"e entries in the "arious -ists in the Se"enth Schedule. These incidental and ancillary powers ha"e to be e4ercised in aid of the main topic of le)islation! which! in the present case! is a ta4 on sale or purchase of )oods. /ll powers necessary for the le"y and collection of the ta4 concerned and for seein)

27 Page 27

38. As (='l"in(+ "3ov(; t#( issu( "n+ t#( ratio decidendi of R.S. $oshi case is (ntir(l% +iff(r(nt "n+ #"s not#ing to +o !it# t#( "''li$"tion of Arti$l( 20 of t#( Constitution of *n+i". 32. /o un+(rst"n+ t#( (="$t n"tur( of t#( forf(itur( $ont(1'l"t(+ un+(r t#( (SA5<6A) A$t it is n($(ss"r% to (="1in( t#( n"tur( of t#( 'ro'(rt% !#i$# is soug#t to 3( forf(it(+ "n+ "lso t#( '(rsons fro1 !#o1 su$# forf(itur( is soug#t to 3( 1"+(. As "lr("+% noti$(+; t#( A$t is 1"+( "''li$"3l( to fiv( $l"ss(s of '(rsons s'($ifi(+ un+(r s($tion 2. *n ot#(r !or+s; t#( 'ro'(rti(s of '(rsons

3(longing to "n% on( of t#( s"i+ fiv( $"t(gori(s onl% $oul+ 3( forf(it(+ un+(r t#( A$t. <v(n !it# r(f(r(n$( to t#(

that the ta4 is not e"aded are comprised within the ambit of the le)islati"e entry as ancillary or incidental. ;ut where the le)islation under the rele"ant entry proceeds on the basis that the amount concerned is not a ta4 e4i)ible under the law made under that entry! but e"en so lays down that thou)h it is not e4i)ible under the law! it shall be paid o"er to Io"ernment! merely because some dealers by mistake or otherwise ha"e collected it as ta4! it is difficult to see how such pro"ision can be ancillary or incidental to the collection of ta4 le)itimately due under a law made under the rele"ant ta4in) entry. *e do not think that the ambit of ancillary or incidental power )oes to the e4tent of permittin) the le)islature to pro"ide that thou)h the amount collected 0 may be wron)ly 0 by way of ta4 is not e4i)ible under the law as made under the rele"ant ta4in) entry! it shall still be paid o"er to Io"ernment! as if it were ta4. The le)islature cannot under 7ntry 39 of -ist && make a pro"ision to the effect that e"en thou)h a certain amount collected is not a ta4 on the sale or purchase of )oods as laid down by the law! it will still be collected as if it was such a ta4. This is what Section 11(2) has pro"ided. Such a pro"ision cannot in our opinion be treated as comin) within incidental or ancillary powers which the le)islature has )ot under the rele"ant ta4in) entry to ensure that the ta4 is le"ied and collected and that its e"asion becomes impossible. *e are therefore of opinion that the pro"ision contained in Section 11(2) cannot be made under 7ntry 39 of -ist && and cannot be <ustified e"en as an incidental or ancillary pro"ision permitted under that entry.

28 Page 28

'ro'(rti(s #(l+ 3% "n% on( f"lling un+(r "n% of t#( "3ov(1(ntion(+ fiv( $"t(gori(s; t#(ir (ntir( 'ro'(rt% $"nnot 3( forf(it(+ (=$('t t#( 'ro'(rt% !#i$# is

+(t(r1in(+ to 3( ill(g"ll% "$Auir(+ 'ro'(rt% "s +(fin(+ un+(r s($tion 3($) of t#( A$t. -f "ll t#( fiv( $"t(gori(s of '(rsons to !#o1 t#( A$t is 1"+( "''li$"3l(; onl% on( $"t(gor% s'($ifi(+ un+(r s($tion 2(2)(") #"''(ns to 3( of '(rsons !#o "r( foun+ guilt% of "n off(n$( un+(r on( of t#( (n"$t1(nts 1(ntion(+ t#(r(in "n+ $onvi$t(+. /#(

ot#(r four $"t(gori(s of '(rsons to !#o1 t#( A$t is "''li$"3l( "r( '(rsons un$onn($t(+ !it# "n% $ri1( or $onvi$tion un+(r "n% l"! !#il( t#( $"t(gor% of '(rsons f"lling un+(r s($tion 2(2)(3) "r( '(rsons !#o "r( 3(li(v(+ 3% t#( St"t( to 3( viol"tors of l"!. /#( ot#(r t#r((

$"t(gori(s "r( si1'l% '(rsons !#o "r( "sso$i"t(+ !it# (it#(r of t#( t!o $"t(gori(s 1(ntion(+ in s($tion 2(2)(") "n+ (3). At l("st !it# r(f(r(n$( to t#( four $"t(gori(s

ot#(r t#"n t#( on( $ov(r(+ 3% s($tion 2(2)("); t#( forf(itur(J+('riv"tion of t#( 'ro'(rt% is not " $ons(Au(n$( of "n% $onvi$tion for "n off(n$(.

29 Page 29

:0. /#(r(for(; !it# r(f(r(n$( to t#(s( four $"t(gori(s; t#( Au(stion of viol"tion of Arti$l( 20 +o(s not "ris(. *nsof"r "s first $"t(gor% 1(ntion(+ "3ov(; in our o'inion; Arti$l( 20 !oul+ #"v( no "''li$"tion for t#( r("son; $onvi$tion is onl% " f"$tor 3% !#i$# t#( P"rli"1(nt $#os( to i+(ntif% t#( '(rsons to !#o1 t#( A$t 3( 1"+( "''li$"3l(. /#( A$t +o(s not 'rovi+( for t#( $onfis$"tion

of t#( 'ro'(rti(s of "ll t#( $onvi$ts f"lling un+(r S($tion 2(2)(") or +(t(nu(s f"lling un+(r S($tion 2(2)(3). S($tion 6 of t#( A$t "ut#oris(s t#( $o1'(t(nt "ut#orit% to initi"t( 'ro$((+ings of forf(itur( onl% if it #"s r("sons to 3(li(v( (su$# r("sons for 3(li(f "r( r(Auir(+ to 3( r($or+(+ in !riting) t#"t "ll or so1( of t#( 'ro'(rti(s of t#( '(rsons to !#o1 t#( A$t is "''li$"3l( "r( ill(g"ll% "$Auir(+

'ro'(rti(s.

/#( $onvi$tion or t#( 'r(v(ntiv( +(t(ntion

$ont(1'l"t(+ un+(r S($tion 2 is not t#( 3"sis or $"us( of t#( $onfis$"tion 3ut t#( f"$tu"l 3"sis for " r(3utt"3l( 'r(su1'tion to (n"3l( t#( St"t( to initi"t( 'ro$((+ings to (="1in( !#(t#(r t#( 'ro'(rti(s #(l+ 3% su$# '(rsons "r( ill(g"ll% "$Auir(+ 'ro'(rti(s. *t is notorious t#"t '(o'l(

$"rr%ing on "$tiviti(s su$# "s s1uggling to 1"E( 1on(%

30 Page 30

"r( v(r% $l"n+(stin( in t#(ir "$tivit%.

Dir($t 'roof is

+iffi$ult if not i1'ossi3l(. /#( n"tur( of t#( "$tivit% "n+ t#( #"r1 it +o(s to t#( $o11unit% 'rovi+( " suffi$i(ntl% r"tion"l 3"sis for t#( l(gisl"tur( to 1"E( su$# "n "ssu1'tion. sti'ul"t(s 6or( '"rti$ul"rl%; S($tion 6 s'($ifi$"ll% gui+( t#(

t#(

'"r"1(t(rs

!#i$#

s#oul+

$o1'(t(nt "ut#orit% in for1ing "n o'inion; t#(% "r(G t#( v"lu( of t#( 'ro'(rt% "n+ t#( Eno!n sour$(s of t#( in$o1(; ("rnings (t$. of t#( '(rson !#o is soug#t to 3( 'ro$((+(+ "g"inst. <v(n in t#( $"s( of su$# '(rsons; t#( A$t +o(s not 1"n+"t( su$# "n (nAuir% "g"inst "ll t#( "ss(ts of su$# '(rsons. An (nAuir% is li1it(+ to su$# of t#( "ss(ts !#i$# t#( $o1'(t(nt "ut#orit% 3(li(v(s (to st"rt !it#) "r( 3(%on+ t#( fin"n$i"l "3ilit% of t#( #ol+(r #"ving r(g"r+ to #is Eno!n "n+ l(giti1"t( sour$(s of in$o1(; ("rnings (t$. Conn($tion !it# t#( $onvi$tion is

too r(1ot( "n+; t#(r(for(; in our o'inion; !oul+ not 3( #it 3% t#( 'ro#i3ition $ont"in(+ un+(r Arti$l( 20 of t#( Constitution of *n+i". :1. *f " su30($t "$Auir(s 'ro'(rt% 3% 1("ns !#i$# "r( not l(g"ll% "''rov(+; sov(r(ign !oul+ 3( '(rf($tl% 0ustifi(+ to

31 Page 31

+('riv( su$# '(rsons of t#( (n0o%1(nt of su$# ill-gott(n !("lt#. /#(r( is " 'u3li$ int(r(st in (nsuring t#"t '(rsons !#o $"nnot (st"3lis# t#"t t#(% #"v( l(giti1"t( sour$(s to "$Auir( t#( "ss(ts #(l+ 3% t#(1 +o not (n0o% su$# !("lt#. Su$# " +('riv"tion; in our o'inion; !oul+ $(rt"inl% 3( $onsist(nt !it# t#( r(Auir(1(nt of Arti$l( 300A "n+ 1: of t#( Constitution !#i$# 'r(v(nt t#( St"t( fro1 "r3itr"ril% +('riving " su30($t of #is 'ro'(rt%. :2. 8#(t#(r t#(r( is " rig#t to #ol+ 'ro'(rt% !#i$# is t#( 'ro+u$t of $ri1( is " Au(stion (="1in(+ in 1"n% 0uris+i$tions. /o un+(rst"n+ t#( su3st"n$( of su$#

(="1in"tion; !( $"n 'rofit"3l% (=tr"$t fro1 "n "rti$l( 'u3lis#(+ in t#( Fourn"l of 5in"n$i"l Cri1(; 200: 3% Ant#on% N(nn(+%.11
>..*t #"s 3((n sugg(st(+ t#"t " logi$"l int(r'r(t"tion of Art. 1 of t#( 5irst Proto$ol of t#( <uro'("n Conv(ntion on 4u1"n .ig#ts is9 H<v(r%on( is (ntitl(+ to o!n !#"t(v(r 'ro'(rt% t#(% #"v( (l"!full%) "$Auir(+ &..B #(n$( i1'l%ing t#"t t#(% +o not #"v( " rig#t un+(r Art. 1 to o!n 'ro'(rt% !#i$# #"s 3((n unl"!full% "$Auir(+. /#is 'oint !"s "rgu(+ in t#( *ris# 4ig# Court in Iillig"n v /#( Cri1in"l Ass(ts ur("u; n"1(l% t#"t !#(r( " +(f(n+"nt is in 'oss(ssion or $ontrol ov(r "ss(ts !#i$# +ir($tl%
4("+ of L(g"l C"s(!orE; Nort#(rn *r(l"n+ for t#( Ass(ts .($ov(r% Ag(n$% in #is Arti$l( HFustif%ing t#( $ivil r($ov(r% of $ri1in"l 'ro$((+sB 'u3lis#(+ in t#( Fourn"l of 5in"n$i"l Cri1(; 200: 7ol.12; *ss.1.
11

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or in+ir($tl% $onstitut( t#( 'ro$((+s of $ri1(; #( #"s no 'ro'(rt% rig#ts in t#os( "ss(ts "n+ no v"li+ titl( to t#(1; !#(t#(r 'rot($t(+ 3% t#( *ris# Constitution or 3% "n% ot#(r l"!. A si1il"r vi(! s((1s to #"v( 3((n (='r(ss(+ ("rli(r in " +iss(nting o'inion in Welch v United Kingdom 9 Hin 1% o'inion; t#( $onfis$"tion of 'ro'(rt% "$Auir(+ 3% $ri1(; (v(n !it#out (='r(ss 'rior l(gisl"tion is not $ontr"r% to Arti$l( 7 of t#( Conv(ntion; nor to Arti$l( 1 of t#( 5irst Proto$ol.B /#is 'rin$i'l( #"s "lso 3((n (='lor(+ in )S 0uris'ru+(n$(. *n United States v. Vanhorn " +(f(n+"nt $onvi$t(+ of fr"u+ "n+ 1on(% l"un+(ring !"s not (ntitl(+ to t#( r(turn of t#( s(iK(+ 'ro$((+s sin$( t#(% "1ount(+ to $ontr"3"n+ !#i$# #( #"+ no rig#t to 'oss(ss. *n United States v Dusenbery t#( $ourt #(l+ t#"t; 3($"us( t#( r(s'on+(nt $on$(+(+ t#"t #( us(+ +rug 'ro$((+s to 'ur$#"s( " $"r "n+ ot#(r '(rson"l 'ro'(rt%; #( #"+ no o!n(rs#i' int(r(st in t#( 'ro'(rt% "n+ t#us $oul+ not s((E " r(1(+% "g"inst t#( gov(rn1(ntBs +($ision to +(stro% t#( 'ro'(rt% !it#out r($ours( to for1"l forf(itur( 'ro$((+ings. /#( )N gov(rn1(nt #"s i1'li(+l% "+o't(+ t#is '(rs'($tiv(; st"ting t#"t9 H&. *t is i1'ort"nt to 3("r in 1in+ t#( 'ur'os( of $ivil r($ov(r%; n"1(l% to (st"3lis# "s " 1"tt(r of $ivil l"! t#"t t#(r( is no rig#t to (n0o% 'ro'(rt% t#"t +(riv(s fro1 unl"!ful $on+u$t.?

:3. Non-$onvi$tion 3"s(+ "ss(t forf(itur( 1o+(l "lso Eno!n "s Civil 5orf(itur( L(gisl"tion g"in(+ $urr(n$% in v"rious $ountri(s9 )nit(+ St"t(s of A1(ri$"; *t"l%; *r(l"n+; Sout# Afri$"; )N; Austr"li" "n+ $(rt"in 'rovin$(s of C"n"+". ::. Ant#on% N(nn(+% $on$('tu"lis(+ t#( $ivil forf(itur( r(gi1( in t#( follo!ing !or+s9>2i"il forfeiture represents a mo"e from a crime and punishment model of <ustice to a pre"enti"e model of <ustice. 33 Page 33

&t seeks to take ille)ally obtained property out of the possession of or)anised crime fi)ures so as to pre"ent them! first! from usin) it as workin) capital for future crimes and! secondly! from flauntin) it in such a way as they become role models for others to follow into a lifestyle of ac#uisiti"e crime. 2i"il reco"ery is therefore not aimed at punishin) beha"iour but at remo"in) the Gtrophies@ of past criminal beha"iour and the means to commit future criminal beha"iour. *hile it would clearly be more desirable if successful criminal proceedin)s could be instituted! the operati"e theory is that Ghalf a loaf is better than no bread@.?

:@. 5or "ll t#( "3ov(-1(ntion(+ r("sons; !( "r( of t#( o'inion t#"t t#( A$t is not viol"tiv( of Arti$l( 20 of t#( Constitution. <v(n ot#(r!is( "s !"s rig#tl% 'oint(+ out 3% t#( l("rn(+ A++l. Soli$itor I(n(r"l; in vi(! of its in$lusion in t#( *Ot# S$#(+ul(; t#( A$t is i11un( fro1 "tt"$E on t#( groun+ t#"t it viol"t(s "n% of t#( rig#ts gu"r"nt((+ un+(r P"rt *** of t#( Constitution 3% virtu( of t#( +($l"r"tion un+(r Arti$l( 31- . :6. No! !( "r( r(Auir(+ to $onsi+(r t#( "lt(rn"tiv( "n+ l"st su31ission i.(.; in vi(! of t#( f"ilur( of t#( 4ig# Court to (="1in( t#( t(n"3ilit% of t#( or+(r of t#( forf(itur( "s $onfir1(+ 3% t#( "''(ll"t( tri3un"l t#( 1"tt(r is r(Auir(+ to 3( r(1itt(+ to t#( 4ig# Court for "''ro'ri"t(

$onsi+(r"tion. /#is su31ission is r(Auir(+ to 3( r(0($t(+. 8( #"v( $"r(full% gon( t#roug# t#( $o'% of t#( !rit

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'(tition (" $o'% of !#i$# is "v"il"3l( on r($or+) fro1 !#i$# t#( inst"nt "''("l "ris(s. :7. <=$('t $#"ll(nging t#( or+(r of forf(itur( on t#( t!o l(g"l groun+s +is$uss(+ ("rli(r in t#is 0u+g(1(nt; t#(r( is no ot#(r groun+ on !#i$# $orr($tn(ss of t#( or+(r of forf(itur( is "ss"il(+ in t#( !rit '(tition. 5or t#( first ti1( in t#is "''("l; "n "tt(1't is 1"+( to "rgu( t#"t t#( $on$lusions +r"!n 3% t#( $o1'(t(nt "ut#orit% t#"t t#( 'ro'(rti(s forf(it(+ "r( ill(g"ll% "$Auir(+ - is not 0ustifi(+ on "n "''ro'ri"t( *n of "''r($i"tion !or+s; of t#( +(f(n$( "''(ll"nt of t#(

"''(ll"nt. r("''r($i"tion

ot#(r t#(

s((Es "n

(vi+(n$(

!it#out

(v(n

"''ro'ri"t( 'l("+ing in t#( !rit '(tition. *t is " +iff(r(nt 1"tt(r t#"t t#( 4ig# Court in (=(r$is( of its !rit 0uris+i$tion +o(s not nor1"ll% r("''r($i"t( (vi+(n$(. LooE(+ "t "n% "ngl(; !( s(( no r("son to r(1it t#( 1"tt(r to t#( 4ig# Court. :8. *n t#( r(sult; t#( "''("ls; 3(ing +(voi+ of 1(rit; "r( +is1iss(+.

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&&&&&&&&&&&&&.+. ,H.L. GO-HALE.

&&&&&&&&&&&&&.+. ,J. CHELAMES/AR . N(! D(l#iG F"nu"r% 21; 201:.

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