Supreme Court Upholds NCLAT Ruling on Benami Property Attachments

The Supreme Court confirmed an NCLAT decision, stating that challenges to property attachments under the Benami Act can only be made to designated authorities under the Act. This ruling dismisses an appeal and imposes fines on appellants, emphasizing adherence to correct legal processes.

The Supreme Court has affirmed the National Company Law Appellate Tribunal's (NCLAT) ruling that disputes over property attachments under the Benami Act must be addressed by authorities outlined in the Act itself.

A bench of justices PS Narasimha and Atul Chandurkar dismissed the appeal and imposed a Rs 5 lakh penalty on the petitioners. The justices criticized the appellants for what they termed as an attempt to circumvent established legal procedures.

The court's decision underscores the importance of seeking remedies through the correct legal channels and highlights the inefficiencies caused by misdirected appeals. The ruling reaffirms the comprehensive legal framework intended by the Benami Act.

(With inputs from agencies.)