In a notable legal turn, the Supreme Court of India has recalled its 2022 judgment in the Union of India vs Garipati Dealcom Pvt. Ltd. case, which had declared Sections 3(2) and 5 of the Benami Transactions (Prohibition) Act, 1988, unconstitutional. A bench led by Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, responded to a review petition filed by the Union Government, restoring these key legal provisions for fresh consideration.
The recall stems from the bench's observation that the constitutionality of the unamended 1988 Act was never directly contested in the original proceedings. Instead, the focus had been on whether the 2016 amendments should apply retrospectively. The court found that the earlier bench had gone beyond this issue, addressing the validity of provisions that were not part of the live dispute.
By recalling the 2022 judgment, the Court has reinstated Sections 3(2) and 5, which deal with punishment for benami transactions and confiscation of property, respectively. This opens the door for fresh adjudication on their constitutionality. The earlier ruling, delivered by a bench led by then Chief Justice NV Ramana, had not only struck down these sections but also limited the application of the 2016 amendments.
The Supreme Court's decision to recall the judgment and reopen the case signals a renewed legal examination of the Benami Act, with further hearings to follow.
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