A bench headed by Chief Justice of India DY Chandrachud while hearing a review petition called a 2022 Judgement for fresh adjudication. The 2022 Judgement was passed by a 3 judge bench headed by then CJI NV Ramana which ruled that the 2016 Amendment act cannot be applied in a retrospective manner. Subsequently, the court quashed all matters where transactions before the 2016 act came into force.
The apex court was hearing a review petition which was filed by Union Government and Feputy Commisioner of Income Tax (Benami Prohibition). Solicitor General Tushar Mehta appeared for the government and argued that the 2022 ruling “had unsettled 40 years of jurisprudence”. He further submitted that the question before the 2022 court was to decide whether the 2016 Amendment on Benami Property law had a prospective effect or not. However, the then court went beyond the qustion raised and declared certain provisions unconstitutional. The review petition was allowed.
The 2022 judgement rendered the retrospective effect of 2016 act unconstitutional since it was in violation of the Articcle 20(1) which prohibits the imposition of a retrospective punishment. The judgement had struck down section 3 and 5 of the 1988 act which criminalsied Benami Transactions and allowed for confiscation of benami properties, the judgement had also said that any action taken on transactions between 1988-2016 under the old law are “null and void”.
The Chief Justice of India DY Chandrachud said that a new bench will be constituted to hear the constitutional validity of the Benami Law Provisions. The court order said “It is trite law that a challenge to the constitutional validity of a statutory provisions cannot be adjudicated upon in the absence of a live lis [legal action] and contest between the parties. In the present case, the constitutional validity was not squarely addressed. We accordingly allow the review petition and recall the judgment,”
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