The High Court
Case Details
Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Designation: Junior Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 01-Sep-2023 18:09:58 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No. 18277 OF 2023 Goldenland Development Ltd., New Delhi and another …. Petitioners Mr. Soumya Jyoti Biswal, Advocate Sub-Registrar’s Office, Khalikot and others …. Opp. Parties -versus-
Legal Reasoning
Mr. Ajodhya Ranjan Dash, Additional Government Advocate (For Opp. Party Nos.1 and 2) Mr. Bibekananda Bhuyan, Advocate (For Opp. Party No.3) CORAM: JUSTICE K.R. MOHAPATRA Order No.
Decision
ORDER 01.09.2023 5. 1. This matter is taken up through hybrid mode. 2. The Petitioners in this writ petition seek for a direction to the Sub-Registrar, Khalikot-Opposite Party No.1 to register the sale deeds as per Annexure-6 series by declaring the letter dated 26th May, 2022 issued by the Superintendent of Police, EOW, CID CB, Odisha, Bhubaneswar to the Inspector General of Registration, Odisha, Cuttack. 3. Mr. Biswal, learned counsel submits that the Petitioner- company had accepted investments and deposits from the investors and depositors, but it could not act upon the promise made to them. Accordingly, proceeding under the Odisha Protection of Interests of Depositors (In Financial Establishments) Act, 2011 (for brevity ‘the Act’) was initiated Page 1 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Designation: Junior Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 01-Sep-2023 18:09:58 // 2 // and some of the properties of the Petitioner-company have been attached. Criminal proceedings are also pending against the Petitioner-company. At that juncture, the Petitioner-company presented the sale deeds under Annexure-6 series for registration. The Sub-Registrar, Khalikote-Opposite Party No.1 relying upon the instruction issued under Annexure-2 is not registering the documents. Hence, this writ petition has been filed. 3.1. It is his submission that no proceeding under Section 3 of the Act has been initiated in respect of the properties for which sale deeds under Annexure-6 series were presented. It is also submitted that there is no direction of the competent court of law for attachment/sale of those properties under the provision of the Act or there is no restraint order for sale of those properties. Hence, there is no legal impediment to register those documents. It is only on the instruction of the Superintendent of Police, EOW, the Sub-Registrar is not registering the documents. In support of his case, Mr. Biswal, learned counsel for the Petitioners relied upon the case of M/s. HI-TECH Estates and Promoters (P) Ltd. –v- State of Odisha and others, reported in 2017 (I) ILR-CUT 83, wherein it is held as under: Article 300-A of the Constitution of India provides “9. that no personal shall be deprived of his property save by authority of law. Deprivation of property comes in various ways, such as destruction or confiscation or revocation of a proprietary right granted by the proprietor, seizure of goods and immovable property from the possession of individual or assumption of control of a business, in exercise of the police power of a State. Under the Constitution, the Executive cannot deprive a person of his property (any kind) without specific legal authority which can be established in a court of law, however, laudable the motive behind may be such deprivation. The expression of Page 2 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Designation: Junior Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 01-Sep-2023 18:09:58 // 3 // authority of law means by or under any law made by the competent legislature. Admittedly, in the present case, no seizure has been affected under Section 102 of the Cr.P.C. The Superintendent of Police, E.O.W., CBI, Crime Branch has issued a notice to the Sub-Registrar, Jatni for prohibiting him from registering any sale executed by the petitioners or its Directors. Writing of such a letter is not by authority of law. It was open for the Investigating Agency, prosecuting or the executing agency to proceed the provisions of Criminal Law Amendment under the Odisha Ordinance, 1944 or the provisions of Protection of (In Finance Establishments) Act, 2011. Interests of Depositors So, instead of taking appropriate action against the petitioners, as the authority of law, they have simply issued a the registering authority, which accordingly to this Court, is not sustainable. letter to In the result, on the basis of the aforesaid 10. discussions, this Court is of the opinion that Annexues-4 of both the writ petitions cannot be upheld by this Court and the same have to be quashed. Accordingly, the Annexures- 4, i.e. letter no. 1912/CID-EOW, dated 22.05.2013 issued by the Superintendent of Police, E.O.W.,CID, Crime Branch, Odisha, Bhubaneswar in both the writ petitions are quashed. However, this order should not be taken to be mean that the investigating agency or the prosecuting agency or the State Government has any bar to approach the appropriate court under the aforesaid provisions of the Criminal Law Amendment Ordinance, 1994 or the OPID Act, With such observations, the writ petitions are allowed.” 3.2 He also relied upon several other decisions of this Court disposed of in the same light. He, therefore, submits that when the properties are not attached by the Competent Authority and there is no restraint order for sale of those properties by any competent Court of law, the registration of the sale deeds under Annexure-6 series should not be denied on mere communication of a Police Officer. He, therefore, prays for setting aside the letter under Annexure-2 and to direct the Sub-Registrar, Khalikot to register the sale deeds as at Annexure-6 series. Page 3 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Designation: Junior Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 01-Sep-2023 18:09:58 // 4 // 4. Mr. Bhuyan, learned counsel for the Competent Authority/Economic Offences Wing, CID Crime Branch, Khurdha-Bhubaneswar-Opposite Party No.3 submits that the properties sought to be alienated are more fully described in the additional affidavit filed by the Petitioner-company. Upon verification, it is found that those properties have not yet been attached. He further submits that as on date, the properties covered under Annexure-6 series have not been attached by the Competent Authority. He, however, submits that in view of Section 10 of the Act, the designated Court under the Act can direct sale of those properties for realization of money for refund to the depositors/investors. He, however, fairly concedes that no such order has yet been passed in respect of the properties under sale deeds under Annexure-6 series. He also submits that the competent authority is taking steps to attach some more properties for realization of the money invested by the depositors/investors. As on the date of filing of counter affidavit, the claim of the depositors was Rs.479,65,04,874/- whereas, the Competent Authority is in possession of Rs.102,17,75,690/-. He, therefore, submits that the Court may pass necessary orders taking into consideration the facts and circumstances of the case. 5. Mr. Dash, learned Additional Government Advocate submits that he has no instruction in the matter. 6. Taking into consideration the submissions made by learned counsel for the parties, this Court is of the considered opinion that law is no more res-integra on the issue to the effect that a police officer has no authority to direct the Sub-Registrar not to register any sale deed without any order of the competent Page 4 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Designation: Junior Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 01-Sep-2023 18:09:58 // 5 // Court of law or an order under Section 3 of the Act. In the instant case, no such order has been produced before this Court restricting alienation of the properties covered under the sale deeds under Annexure-6 series. 7. In that view of the matter, the letter under Annexure-2 issued by the Superintend of Police, EOW, CID CB, Odisha, Bhubaneswar is without jurisdiction and is hereby set aside. Consequently, the writ petition is allowed and the Sub-Registrar, Khalikot-Opposite Party No.1 is directed to consider the registration of the sale deeds under Annexure-6 series without taking note of the instruction issued under Annexure-2. The process of taking decision for registration of the sale deeds shall be completed within a period of four weeks from the date of production of certified copy of this order. 8. With the aforesaid observation and direction, this writ petition is disposed of. Urgent certified copy of this order be granted on proper application. ms (K.R. Mohapatra) Judge Page 5 of 5