No Recall Without Sufficient Cause: Tribunal Rejects Bid to Set Aside Ex-Parte Benami Orders

Visakh K. Vs SRS Mining (Appellate Tribunal Under SAFEMA at Delhi)

The Appellate Tribunal under SAFEMA dismissed the recall applications filed by M/s SRS Mining seeking to set aside earlier ex-parte orders passed in benami proceedings under the Prohibition of Benami Property Transactions Act (PBPTA). The Tribunal held that the Applicant failed to demonstrate “sufficient cause” for non-appearance, despite being granted multiple opportunities over an extended period.

The contention that absence was due to personal difficulties (illness and death in family) and negligence of counsel was rejected, as the Tribunal observed that other partners of the firm could have pursued the matter, and adequate time existed even after the stated events. It emphasized that recall jurisdiction requires proof that non-appearance was beyond the party’s control, which was not established in this case.

The Tribunal also clarified the distinction between recall and review, stating that recall is permissible only when there is denial of opportunity due to sufficient cause, whereas review requires an error apparent on record. The Applicant failed on both counts.

Further, the attempt to rely on a subsequent Supreme Court judgment (in a PMLA matter) was rejected, noting that it was not relevant to PBPTA proceedings and, in any case, was not brought on record in time.

Accordingly, finding no justification to interfere, the Tribunal refused to recall its earlier orders, leaving the Department’s appeal (allowing benami attachment) intact.

FULL TEXT OF THE ORDER OF APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI

This Order disposes of the Applications I.A. Nos. MP-PBPT-917/CHN/2025 (Recall) dated 03.02.2025, MP-PBPT-918/CHN/ 2025 (Recall) dated 03.02.2025 and MP-PBPT-1286/CHN/2025 (Recall) dated 18.03.2025 have been filed by the Respondent/ Applicant M/s SRS Mining under Section 40 of the Prohibition of Benami Property Transaction Act, 1988 (PBPTA) seeking Recall of the Orders dated 03.07.2024, 14.01.2025 and 30.01.2025 passed by this Tribunal. The Applicant has also filed an Application for taking certain additional documents on record.