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Supreme Court of India

SMT. HEENA KAUSARversusCOMPETENT AUTHORITY

Citation
2008 INSC 528
Decided
24 April 2008
Disposal
Dismissed

Holding

The amendment’s proviso to Section 68C does not apply to the earlier confiscation proceedings, and the earlier order remains final; the classification is reasonable and does not offend Article 14.

Summary

The wife of a man detained under the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act was served a show‑cause notice under Chapter V‑A of the NDPS Act for alleged illegal acquisition of properties. The Appellate Tribunal ordered confiscation of the flats; the Bombay High Court dismissed that order but remitted the question of three bank accounts. While the proceedings were pending, the NDPS Act was amended in 2001 inserting a proviso to Section 68C prescribing a six‑year limitation for forfeiture actions. The appellant sought to invoke the amendment to set aside the confiscation order, arguing that the proviso was ultra‑viole​t of Article 14 and that the show‑cause notice was defective. The Supreme Court held that the amendment could not be applied retrospectively, that the High Court’s order was final and that the principle of constructive res judicata bars reopening the matter; the classification under the proviso was a reasonable classification and did not violate Article 14. Consequently, the appeal was dismissed with costs.

Issues considered

  • The proviso inserted in Section 68C of the NDPS Act (2001 amendment) is applicable to forfeiture proceedings initiated before its insertion.
  • Whether the six‑year limitation period under the proviso can be invoked to set aside the earlier confiscation order.
  • Whether the proviso violates Article 14 of the Constitution as an unreasonable classification.
  • The applicability of constructive res judicata to writ proceedings and the finality of the High Court’s order.

Legislation cited

Subjects

NDPS ActSection 68Cprohibition of holding illegally acquired propertyperiod of limitationArticle 14constructive res judicatapreventive detentionforfeiture of propertyclassificationeconomic aspect

Judgment

                                [2008] 6 S.C.R. 967


)
                             SMT. HEENA KAUSAR                               A
                                         II.
                           COMPETENT AUTHORITY
                       (Criminal Appeal No.1058 of 2003)
                                 APRIL 24, 2008
                                                                             B
'.                 [S.S. SINHA AND V.S. SIRPURKAR, JJ.]

               Narcotic Drugs and Psychotropic Substance Act, 1985;
          Section 68, proviso to s.68C as inserted by Amendment Act
          No. 9 of 2001:                                                     c
                 Prohibition of holding illegally acquired property -
          Exception to, in terms of proviso to s. 68C as inserted by
          'amendment in the Act providing for period of limitation -
          Applicability of - Held: Not applicable - Order of Appellate
          Authority directing confiscation of property allegedly acquired D
          illegally by appellant challenged before High Court - Since
    " .   appellant did not raise contention about applicability of proviso
          to s. 68 as amended before the Appellate Authority or High
           Court, the order of High Court dismissing the petition atta1::e :
          finality - Principle of Constructive Res Judicata also applies E
          to writ proceedings - Not invoking of period of /imitation by
          the Authorities for initiation of proceedings for forfeiture of the
          properties that by itself would not be sufficient to attract wrath
          of Article 14 of the Constitution -It is not a case where the
           validity of the statute is in question - Moreover, Parliament
                                                                              F
          exclude the applicability of the period of limitation in term of
     )    amended provision u/s 68C of the Act - No case has been
          made to invoke Article 14 of the Constitution - Constitution of
          India, 1950-Article 14.
               NDPS Act, 1985 -Economic aspects - Scope of -                 G
          Discussed.
              State Government of Maharasthra passed an order
          of preventive detention against the husband of the
          appellant under the provisions of the Prevention of Illicit
                                     967                                     H
    968      SUPREME COURT REPORTS               [2008] 6 S.C.R.


A Traffic in Narcotic Drugs and Psychotropic Substances
  Act. However, her husband had not been taken in custody
  by the police/authorities. A proceeding was initiated
  against her in term of Chapter V-A of the Act by serving
  her a show cause notice for confiscation of the properties
B allegedly acquired by her illegally. Aggrieved the appellant
  preferred an appeal before the Tribunal. The Tribunal
  directed to confiscate the properties. The order was
  challenged by the appellant by filing a writ petition. The
  petition was dismissed by the High Court insofar as the
C order of confiscation of the properties was concerned but
  in regard to the confiscation of three bank accounts, the
  matter was remitted to the Tribunal for decision afresh. In
  the meantime, the NDPS Act was amended. An Application
  purported to be for rectification having regard to the said
  amendment, was filed by the appellant before.the Tribunal,
0
  praying for setting aside the order passed by it as also
  the order ot the competent authority passed earlier. The
  Application was dismissed by the Tribunal. Appeal
  preferred thereagainst by the appellant was dismissed by
  the High Court. Hence, the present appeal.
E
       Appellant contended that a classification made in a
  statute by way of under inclusion would not validate the
  proviso to Section 68E of the NDPS Act as it stood prior
  to 2001 insofar as there did not exist any valid or cogent
F reason for not providing the period of limitation of six
  years in respect of a person who was charged for
  commission of an offence relating to illicit traffic vis-a-vis
  a person who is sought to be detained under a preventive
  detention; and that the show cause notice did not contain
G any reason which was required to be recorded in terms
  of Section 68E read with Section 68H of the Act.
          Dismissing the appeal, the Court
       HELD: 1.1 The order of the Appellate Authority was
H the subject matter of the writ petition. The contentions
      SMT. HEENA KAUSAR v. COMPETENT AUTHORITY               969


    raised before this Court were not raised before the said       A
    Authority or before the High Court. The order of the High
    Court dated 15.12.1999 attained finality. [Para 9] [975-C]
         1.2 The property in question stood forfeited to the
    State Government. The said proceedings cannot be
    permitted to be reopened. Only because in relation to the      B
"
    bank accounts, the matter was remanded, during
    pendency whereof, the proviso appended to s.68C of
    Narcotic Drugs Psychotropic Substance Act was inserted,
    the same by itself, would not give rise to another cause of
    action so as to enable the appellant to raise the              c
    contentions which he could and ought to have raised in
    the earlier proceedings. The principle of 'Constructive Res
    Judicata', it is trite, applies also to a writ proceeding.
    [Paras 9 and 10] [975-C-F]
                                                                    D
          2.1 The 'Proviso' appended to Section 68C of the Act
    was in the statute book since 1989. Appellant's husband
    was served with an order of detention as far back as in
    the year 1994. The notice under Section 680 of the Act
    was issued in the year 1995. Only because at a later stage,
    a period of limitation was prescribed for initiation of E
    proceedings for forfeiture of the properties, the same, by
    itself would not be sufficient to arrive at a conclusion that
    the same attracts the wrath of Article 14 of the Constitution
    of India. [Paras 11 and 12] [975-G-H; 976-A]
                                                                    F
y         2.2 It is now well settled that validity of a statute can
    be upheld if there exists a valid and reasonable
    classification therefor, being based upon the substantial
    distinction bearing a reasonable and just relation with the
    object sought to be attained. [Para 13] [976-B]
                                                                   G
         2.3 A law may be constitutional even though it affects
    an individual. There exists a presumption in favour of the
    constitutionality of an enactment. The burden of proof that
    the legislation is unconstitutional is upon the person who
    attacks it, save and except the cases where, inter alia,       H
    970      SUPREME COURT REPORTS                  [2008] 6 S.C.R.


A arbitrariness appears on the face of the statute and the
  burden of proof in regard to constitutionality of the statute
  is on the State. The principle of equality would not mean
  that every law must have universal application for all
  persons who, by nature, attainment or circumstances, are
B in the same position. [Para 14] (976-C-D]
        2.4 A law is amended by the Parliament having regard
  to its experience. It is a matter of legislative policy and for
  that purpose mere inequality cannot be the sole factor
  for determining the constitutionality of the impugned
C provision. [Para 15] (976-E]
           2.5Article 14 of the Constitution forbids classification,
    it is trite, it does not forbid reasonable classification. The
    classification, however, should be based on reasonable
    and rational differentia and should not be arbitrary. It is
0
    not a case where validity of the statute itself is in question.
    Ordinarily, a statute providing for 'under inclusion' would
    not be held to be attracting the wrath of Article 14.
    [Paras 16, 17, 18] [976-F-H; 977-A]
E         State of Gujarat & Anr. V Shri Ambika Mills Ltd.& Anr
    (1974) 4 sec 656 - followed.
        M.P Rural Agriculture Extension Officers Association v.
  State of M. P & Anr (2004) 4 SCC 646; State of Bihar & Ors. v
  Bihar State +2 Lecturers Associations & Ors. (2007) 7 SCALE
F 697; State of West Bengal v Anwar Ali Sarkar AIR 1952 SC
  75; Ram Krishna Oalmia v Shri Justice S.R Tendolkar & Ors.
  (1959) SCR 279 and The Superintendent and Remembrancer
  of Legal Affairs, West Bengal v Girish Kumar Navalakha and
  Ors. (1975) 4 sec 754 - relied on.
G
         3.1 The statute deals with an economic aspect of the
    matter. The purported object for which such a statute has
    been enacted must be noticed in interpreting the
    provisions thereof. The nexus of huge amount of money
    generated by drug trafficking and the purpose for which
H
        SMT. HEENA KAUSAR v. COMPETENT AUTHORITY               971


       they are spent is well known. Harsh laws, not only for A
       punishing the drug traffickers but also for preventive
       detention, if the conditions therefor are satisfied, were
       made. Necessity was felt for introduction of strict
       measures so that money earned from the drug trafficking
       by the persons concerned may not continue to be B
....   invested, inter alia, by purchasing moveable or
       immoveable properties not only in his own name but also
       in the names of his near relatives. [Para 19] [979-E-G]
            3.2 The case in hand itself throws sufficient light as
       to why the Parliament thought it fit to exclude the C
       applicability of the provisions of the period of limitation in
       the matter of initiation of proceedings for forfeiture of
       properties. [Para 19] [979-H; 980-A]
            3.3 A person might have committed only one time
                                                                 0
       offence, another not only may be an offender but also
       might have been indulging in drug trafficking for a long
       time. Whereas in the former an order of preventive
       detention may not be necessary, in case of the latter, it
       may be found to be necessary. The distinction although
       appears to be fine, but real. [Para 20] [980-B-C]         E
            In Re: The Special Courts Bill, 1978 (1979) 1 SCC 380
       - referred to.
            4. In view of the settled legal position no case has
       been made out to invoke Article 14 of the Constitution of     F
       India so as to hold that the proviso to s.68C of the Act as
       amended in the year 2001 shall also apply to the present
       category of cases. [Para 22] [982-E-F]
            State of Gujarat & Anr v. Shri Ambika Mills Ltd. & Anr   G
       (1974) 4 sec 656 - referred to.
           CRIMINALAPPELLATE JURISDICTION: Criminal Appeal
       No.1058 of 2003.
            From the final Judgment and Order dated 27.11.2002 of    H
    972       SUPREME COURT REPORTS                   (2008] 6 S.C.R.


A   the High Court of Judicature at Bombay in Criminal Writ Petition
    No. 1283 of 2002.
        Raju Ramachandran, G.S. Pikale, E.C. Agrawala, Rishi
    Agrawala, Amit Sharma and Saurabh S. Sinha for the Appellant.

B         Sushma Suri for the Respondent.                                 ..
          The Judgment of the Court was delivered by
         S.B. SINHA, J. 1. Validity of the proviso appended to
    Section 68C of the Narcotic Drugs and Psychotropic
c   Substances Act, 1985 (NDPS Act) is in question in this appeal
    which arises out of a judgment and order dated 27.11.2002
    passed by a Division Bench of the High Court of Judicature at
    Bombay.
          2. The basic fact of the matter is not in dispute.
D
        3. Appellant herein is wife of one Iqbal Mohammed                 ,,
  Memon. An order of detention was passed against him under
  the provisions of the Prevention of Illicit Traffic in Narcotic Drugs
  and Psychotropic Substances Act, 1988 (PINDPS Act) by the
  State of Marharashtra. Allegedly, both the appellant and her
E husband left India in or about the year 1991. Appellant has not
  yet come back to India. Her husband admittedly had not been
  taken incustody pursuant to the order of detention. Admittedly
  again, Appellant has several properties in her name. A
  proceeding was initiated against her in terms of Chapter V-A of
F the Act, wherefor, she was served with a show cause notice
  dated 9.5.1995 asking her to furnish the proof and/or source of
  income and/or the channels from which the assets being Flat
  Nos.501 and 502A along with stilt parking No.19 in Milton
  Apartments at Juhu Tara Road, Santacruz {W) had been
G acquired as also to show cause why the said properties should
  not be held to be "illegally acquired properties" and forfeited by
  the Central Government under the Act.
        4. An appeal thereagainst was preferred before the
    Appellate Tribunal. By an order dated 10.2.1999, the properties
H
      SMT. HEENA KAUSAR v. COMPETENT AUTHORITY                      973
                    [S.B. SINHA, J.]

     were directed to be confiscated.                                      A·
                                    "
          A writ petition was filed by her before the Bombay High
     Court which was marked as Writ Petition No.1867of1999. The
     said writ petition was dismissed by a judgment and order dated
     15.12.1999 insofar as the order of confiscation of flat No.501
'·   and 502 and stilt parking in Milton Apartments were concerned.        8
     However, in regard to the confiscation of three bank accounts,
     the matter was remitted to the Appellate Tribunal for its decision.
         5. Proviso appended to Section 68-C prior to its
     amendment stood as follows :                                          c
           "Provided that no property shall be forfeited under this
           Chapter, if such property was.acquired by a person to
         · whom this Act applies before a period of six years from
           the date on which he was charged for an offence relating
           to illicit traffic."                                            D
          Section 68-C, after the amendment, reads as under :
          "Section SSC - Prohibition of holding illegally acquired
          property-(1) As from the commencement of this
          Chapter, it shall not be lawful for any person to whom this      E
          Chapter applies to hold any illegally acquired property
          either by himself or through any other person on his behalf.
          (2) Where any person holds any illegally acquired property
          in contravention of the provisions of sub-section (1 ), such
          property shall be liable to be forfeited to the Central          F
          Government in accordance with the provisions of this
          Chapter:
          Provided that no property shall be forfeited under this
          Chapter if such property was acquired, by a person to G
          whom this Act applies, before a period of six years from
          the date he was arrested or against whom a warrant or
          authorisation of arrest has been issued for the commission
          of an offence punishable under this Act or from the date
          the order or detention was issued, as the case may be." H
    974        SUPREME COURT REPORTS                    (2008] 6 S.C.R.


A         Indisputably, the Act was amended by Act No.9 of 2001
    with effect from 2.10.2001.

          6. An application purported to be for rectification having
    regard to the said amendment, was filed by the appellant before
    the Appellate Tribunal, inter alia, praying therein for setting aside
B   its order dated 15.2.1999 as also the order of the competent            .'
    authority dated 20.10.1997.

        7. In the said purported application for rectification, the
    appellant raised the following contentions :
c         1.   That prior to coming into force of the said Act, the
               Competent Authority had no jurisdiction to initiate
               any proceeding under the said Act against a citizen
               of India who had been residing out of the country.

          2.   That the proviso, as it stood prior to amendment,
D
               was ultra vires Article 14 of the Constitution of India.
         The said application was dismissed by the Appellate
    Tribunal by an order dated 20.6.2002. A writ petition was filed
    theragainst before the Bombay High Court which was marked
E   as writ petition No.1283 of 2002.

         By reason of the impugned judgment, the said writ petition
    has been dismissed.

           8. Mr. Raju Ramachandran, learned senior counsel
F   appearing on behalf of the appellant, at the outset, did not press
    the first contention raised before the Appellate Authority as also
    before the High Court.
        The learned counsel, however, would submit that a
  classification made in a statute by way of under inclusion would
G not validate the proviso to Section 68E of the Act as it stood
  prior to 2001 insofar as there did not exist any valid or cogent
  reason for not providing the period of limitation of six years in
  respect of a person who was charged for commission of an
  offence relating to illicit traffic vis-a-vis a person who is sought
H
            SMT.1-iEENA KAUSAR v. COMPETENT AUTHORITY                    975
                           [S.8. SINHA, J.]
                                                     I

          to be detained under a preventive detention.                         A
               9. The learned counsel would subrnitthat the show cause
          notice did not contain any reason which was required to be
          recorded in terms of Section 68E read with Section 68H of the
          NDPS Act, and, thus, the Impugned judgment cannot be
          sustained.                                                           B
                 Admittedly, the order of the Appellate Authority was the
          subject matter of the writ petition. The contentions raised herein . ·
          were not raised before the said Authority or before the High
          Court .. The order of the High Court dated 15.12.1999 attained       c
          finality.
               The flats in question stood forfeited to the State
          Government. The said proceedings cannot be permitted to be
          reope11ed.
                                                                               D
               10. Only because in relation to the bank accounts; the
......
          matter was remanded, during pendency whereof, the proviso
          appehded to Section 68C was inserted, the same by itself, in
          our opinion, would not give rise to another cause of action so
          as to enable ttie appellant to raise the contentions which. he
          could and ought to have raised in the earlier proceedings.           E
                 The principle of 'Constructive Res Judicata', it is trite,
           applies also to a writ proceeding. Furthermore, admittedly such
           a .contention has not been raised even in the second writ
           application. The documents which were necessary to be taken F
           into consideration for determining the saic! question are also
           not before us. We, therefore, 'are---Qf the opinion that it is not
         . possible for us to go into the said question.      ··
               ·11. The. 'Pro~iso'· appended to Section 68C\·w~s ln th~        "'
          statute book since 1989. Appellant's husband was served with         G
          an order of.detention as far back as in the year 1994. The notice
          under Section 680 of the Act wcjs issued in the year 1995.
                                                .        . .
              12. Only because at a later stage, a period oflimitation
         was prescribed for initiation of proceedings for forfeiture of the    H
    976       SUPREME COURT REPORTS                    [2008] 6 S.C.R.

                                                                           I.
A   properties, the same, in our opinion, by itself would not be
    sufficient to arrive at a conclusion that the same attracts the
    wrath of Article 14 of the Constitution of India.

          13. It is now well settled that validity of a statute can be

8
    upheld if there exists a valid and reasonable classification
    therefor, being based upon the substantial distinction bearing a
    reasonable and just relation with the object sought to be attained.
                                                                           ..
        14. In this regard, we may notice some well settled legal
  principles. A law may be constitutional even though it affects an
c individual. There exists a presumption in favour of the
  constitutionality of an enactment. The bur~en of proof that the
  legislation is unconstitutional is upon the person who attacks it,
  save and except the cases where, inter alia, arbitrariness
  appears on the face of the statute and the burden of proof in
D regard to constitutionality of the statute is on the State. The
  principle of equality would not mean that every law must have
  universal application for all persons who, by nature, attainment
  or circumstances, are in the same position.

          15. A law is amended by the Parliament having regard to
E   Its experience. It is a matter of legislative policy and for that
    purpose mere inequality cannot be the sole factor for
    determining the constitutionality of the impugned provision.

          16. Whereas Article 14 forbids classification, it is trite, it
    does not forbid reasonable classification. {See M.P Rural
F   Agriculture Extension Officers Association v State of M.P &
    Anr. [(2004) 4 SCC 646]; and State of Bihar & Ors. v Bihar
    State +2 Lecturers Associations & Ors. [(2007) 7 SCALE 697]}.
        17. This court in State of West Bengal v Anwar Ali Sarkar
G (AIR 1952 SC 75] as also Ram Krishna Dalmia v Shri Justice
  S. R. Tendolkar & Ors. [1959 SCR 279], categorically laid down
  the twin test of classification. The classification, however, should
  be based on reasonable and rational differentia and should not
  be arbitrary.

H
         SMT. HEENA KAUSAR v. COMPETENT AUTHORITY                      977
_,'                    [S.B. SINHA, J.]

            18. It is not a case where validity of the statute itself is in A
       question .. Ordinarily, a statute providing for 'under inclusion' would
       not be held to be attracting the wrath of Article 14. A Constitution
       Bench of this Court held so in State of Gujarat & Anr. v. Shri
       Ambika Mills Ltd. & Anr. [(1974) 4 SCC 656], in the following
....   words:                                                                  B
             "54. A reasonable classification is one which includes all
             who are similarly situated and none who are not The
             question then is: what does the phrase "similarly situated"
             mean? The answer to the question is that we must look
             beyond the classification to the purpose of the law. A           c
             reasonable classification is one which includes all persons
             who are similarly situated with respect to the purpose of
             the law. The purpose of a law may be either the elimination
            ·of a public mischief or the achievement of some positive
             public good.                                                D
            55. A classification is under-inclusive when all who are
            included in the class are tainted with the mischief but there
            are others.also tainted whom the classification does not
            include. In other words, a classification is bad as under-
            inclusive when a State benefits or burdens persons in a E
            manner that furthers a legitimate purpose but does not
            confer the same benefit or place the same burden on           •
            others who are similarly situated. A classification is over-
            inclusive when it includes not only those who are similarly
            situated with respect to the purpose but others who are F
            not so situated as well. In other words, this type of
            classification imposes a burden upon a wider range of
            individuals than are included in the class of those attended
            with mischief at which the law aims. Herod ordering the
            death of all male children born on a particular day because G
            one of them would some day bring about his downfall
            employed such a classification.
             56. The first question, therefore, is, whether the exclusion
             of establishments carrying on business or trade and
                                                                              H
    978       SUPREME COURT REPORTS                     [2008] 6 S. C.R.


A         employing less than 50 persons makes the classification
          under-inclusive, when it is seen that all factories employing
          10 or 20 persons, as the case may be, have been included
          and that the purpose of the law is to get in unpaid

B
          accumulations for the welfare of the labour. Since the
          classification does not include all who are similarly situated
          with respect to the purpose of the law, the classification
                                                                            ..
          might appear, at first blush, to be unreasonable. But the
          Court has recognised the very real difficulties under which
          legislatures operate - difficulties arising out of both the
c         nature of the legislative process and of the society which
          legislation attempts perennially to re-shape - and it has
          refused to strike down indiscriminately all legislation
          embodying classificatory inequality here under
          consideration. Mr. Justice Holmes, in urging tolerance of
          under-inclusive classifications, stated that such legislation
D
          should not be disturbed by the Court unless it can clearly
          see that there is no fair reason for the law which would not
          require with equal force its extension to those whom it
          leaves untouched. What, then, are the fair reasons for
          non-extension? What should a court do when it is faced
E         with a law making an under-inclusive classification in areas
          relating to economic and tax matters? Should it, by its
          judgment, force the legislature to choose between inaction
          or perfection?"

F       The said ratio was followed by this Court in The
    Superintendent and Remembrancer of Legal Affairs, West
    Bengal v. Girish Kumar Navalakha and Ors. [(1975) 4 SCC
    754, holding:
          "8. Oftentimes the courts hold that under-inclusion does
G         not deny the equal protection of laws under Article 14. In
          strict theory, this involves an abandonment of the principle
          that classification must include all who are similarly situated
          with respect to the purpose. This under-inclusion is often
          explained by saying that the legislature is free to remedy
H         parts of a mischief or to recognize degrees of evil and
      SMT. HEENA KAUSAR v. COMPETENT AUTHORITY                       979
                    [S.B. SINHA, J.)

          strike at the harm where it thinks it most acute."                 A
          It was furthermore held :
             "10. There are two main considerations to justify an under-
     . ' · · i'nCLusive classification. First, administrative necessity.

..           Second: 'the legislature might not be fully convinced that B
             the particular policy which it adopts will be fully successful
             or wise. Thus to demand application of the policy_to all
             whom it might logically encompass would restrict the
             opportunity of a State to make experiment. These
             techniques would show that some sacrifice of absolute           c
             equality may be required in order that the legal system
             may preserve the flexibility to evolve new solutions to social
             and economic problems. The gradual and piecemeal
             change is often regarded as desirable and legitimate
             though in principle it is achieved at the cost of some
                                                                            0
             equality It would seem that in fiscal and regulatory matters
             the court not only entertains a greater presumption of
             coristitutionality but also places the burden on the party
             challenging its validity to show that it has no reasonable
             basis for making the classification."
                                                                             E
            19. The statute deals with an economic aspect of the
     matter. The purported object for which such a statute has been
     enacted must be noticed in interpreting the provisions thereof.
     The nexus of huge amount of money generated by drug
     trafficking and the purpose for which they are spent is well            F
     known. Harsh laws, not only for punishing the drug traffickers
     but also for preventive detention, if the conditions therefor are
     satisfied, were made. Necessity was felt for introduction of strict
     measures so that money earned from the drug trafficking by the
     persons concerned may not continue to be invested, inter alia,          G
     by purchasing moveable or immoveable properties not only in
     his own name but also in the names of his near relatives.
          This case, itself throws sufficient light as to why the
     Parliament thought it fit to exclude the applicability of the
     provisions of the period of limitation in the matter of initiation of   H
    980       SUPREME COURT REPORTS                    [2008) 6 S.C.R.


A   proceedings for forfeiture of properties.                              \_




         20. The Union of India and the State of Maharashtra have
    not been able to serve even the order of detention upon the
    husband of the appellant. There may be a large number of other
    cases of that nature.
B
          A person might have committed only one time offence,             ..
    another not only may be an offender but also might have been
    indulging in drug trafficking for a long time. Whereas in the former
    an order of preventive detention may not be necessary, in case
c   of the latter, it may be found to be necessary. The distinction
    although appears to be fine, but real.
         21. This Court in Re : The Special Courts Bill, 1978
    [(1979) 1 sec 380, held that the offences which were
    emergency related form a class of offences, stating :
D
          "72. As long back as in 1960, it was said by this Court in
          Kangsari Haldarthat the propositions applicable to cases              .1

          arising under Article 14 "have been repeated so many
          times during the past few years that they now sound almost
          platitudinous". What was considered to be platitudinous
E
          some 18 years ago has, in the natural course of events,
          become even more platitudinous today, especially in view
          of the avalanche of cases which have flooded this Court.
          Many a learned Judge of this Court has said that it is not
          in the formulation of principles under Article 14 but in their
F         application to concrete cases that difficulties generally
          arise. But, considering that we are sitting in a larger Bench
          than some which decided similar cases under Article 14,
          and in view of the peculiar importance of the questions
          arising in this reference, though the questions themselves
G         are not without a precedent, we propose, though
          undoubtedly at the cost of some repetition, to state the
          propositions which emerge from the judgments of this
          Court insofar as they are relevant to the decisio:-1 of the
          points which arise for ou; consideration. Those
H         propositions may be stated thus:
           SMT. HEENA KAUSAR v. COMPETENT AUTHORITY                         981
                         [S.B. SINHA, J.]

               The Court noticed as many as thirteen propositions, some             A
          of which are:

               "(2) The State, in the exercise of its governmental power,
                    has of necessity to make laws operating differently

...                 on different groups or classes of persons within its
                    territory to attain particular ends in giving effect to its     B
                    policies, and it must possess for that purpose large
                    powers of distinguishing and classifying persons or
                    things to be subjected to such laws.

               (3)   The constitutional command to the State to afford              c
                     equal protection of its laws sets a goal not attainable
                     by the invention and application of a precise formula.
                     Therefore, classification need not be constituted by
                     an exact or scientific exclusion or inclusion of persons
                     or things. The courts should not insist on delusive
                                                                                    D
                     exactness or apply doctrinaire tests for determining
                     the validity of classification in any given case.
                     Classification is justified if it is not palpably arbitrary.
               (4)   The principle underlying the guarantee of Article 14
                     is not that the same rules of law should be applicable         E
                     to all persons within the Indian territory or that the
                     same remedies should be made available to them
                     irrespective of differences of circumstances. It only
                     means that all persons similarly circumstanced shall
                     be treated alike both in privileges conferred and              F
      )
                     liabilities imposed. Equal laws would have to be
                     applied to all in the same situation, and there should
                     be no discrimination between one person and
                     another if as regards the subject-matter of the
                     legislation their position is substantially the same.
                                                                                    G
               (5)   By the process of classification, the State has the
                     power of determining who should be regarded as a
                     class for purposes of legislation and in relation to a
                     law enacted on a particular subject. This power, no
                     doubt, in some degree is likely to produce some                H
    982        SUPREME COURT REPORTS                    (2008] 6 S.C.R.


A              inequality; but if a law deals with the liberties of a
               number of well defined classes, it is not open to the
               charge of denial of equal protection on the ground
               that it has no application to other persons.
               Classification thus means segregation in classes
8              which have a systematic relation, usually found in           .   ~



               common properties and characteristics. It postulates
               a rational basis and does not mean herding together
               of certain persons and classes arbitrarily.
               xxx                 xxx            xxx
c
          (11) Classification necessarily implies the making of a
               distinction or discrimination between persons
               classified and those who are not members of that
               ~lass. It is the essence of a classification that upon
               the class are cast duties and burdens different from
D
               those resting upon the general public. Indeed, the
               very idea of classification is that of inequality, so that
               it goes without saying that the mere fact of inequality
               in no manner determines the matter of
               constitutionality."
E
        22. In view of the settled legal position as noticed above,
  we are of the opinion that no case has been made out for us to
  invoke Article 14 of the Constitution of India so as to hold that
  the proviso amended in the year 2001 shall also apply to the
F present category of cases. Accordingly, the appeal is dismissed
  with costs. Counsel's fee assessed to Rs.50,000/- (Rupees fifty
  thousand only)
    S.K.S.                                         Appeal dismissed.


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