Settlement Commission : Abatement of proceedings : S.245D(4A)(1), S.245HA(1) (iv) and S. 245HA(3) not valid : Settlement applications not disposed of by 31-3-2008 for reasons not attributable to the applicant cannot be treated as having abated.

[Star Television News Ltd. v. UOI (Bom.), W.P. No.
952 of 2008 dated 7-8-2009]

The Finance Act, 2007, amended S. 245D(4A) and S. 245HA to
provide that if in respect of a settlement application filed before 1-6-2007,
the Settlement Commission did not pass a final order before 31-3-2008, the
proceedings would abate. In a group of writ petitions the constitutional
validity of the said amendment was challenged. The Bombay High Court allowed
the petitions and held as under :

“(i) The fixing of the cut-off date u/s.245D(4A)(i), the
abatement of proceedings u/s.245HA(1)(iv) and the making available of
confidential information u/s.245HA(3) for no fault of the applicant are
ultra vires the Constitution. In order to save these provisions from
being struck down as being unconstitutional, they will have to be read down
as applying only to cases where the Settlement Commission is unable to pass
an order on or before 31-3-2008 for any reasons attributable on the part of
the applicant.

(ii) Accordingly, the Settlement Commission has to
consider whether the proceedings have been delayed on account of any reasons
attributable on the part of the applicant. If it comes to the conclusion
that it is not so, then it has to proceed with the application as if not
abated.

(iii) The Government shall consider appointment of more
benches of the Settlement Commission if it desires early disposal of pending
applications.”