Madras HC: Won’t interfere in benami case involving Sasikala

Chennai: Madras high court has refused to interfere in an appeal moved by the income tax department in connection with a transaction proceeding initiated against the late chief minister J Jayalalithaa's aide V K Sasikala and her alleged benami V S J Dinakaran. The issue pertains to sale of share held by Dinakaran at Spectrum Mall, Perambur, for 18 crore to Sasikala in 2017. A show cause notice was issued to Dinakaran dated Nov 1, 2019, under the Prohibition of Benami Property Transactions Act, alleging that he is a benamidar for Sasikala. An order of provisional attachment was also made under the Act.But the adjudicating authority refused to confirm the order of attachment, holding that there is no benami transaction. Thereafter, Dinakaran preferred the statutory appeal before the appellate tribunal with a delay of 763 days. The appellate tribunal condoned the delay and posted the matter for further hearing. Aggrieved, Dinakaran moved the present appeal. He contended that under the Prohibition of Benami Act, 45 days is the time limit for filing the appeal, whereas, in the case on hand, the appeal has been filed with a delay of 763 days, without showing sufficient cause and, therefore, the tribunal ought not to have condoned it considering the merits of the case or interest of the state. Refusing to concur, the first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan said, "Once the appellate tribunal, on being satisfied with the reasons assigned by the authorities, in the interest of substantial justice, has exercised its discretion and condoned the delay, this court sitting in appeal over the same cannot interfere, unless the exercise of discretion was on untenable grounds or arbitrary or perverse."