Canbank Financial Services vs Custodian & Anr

The Supreme Court held that under Section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, the attachment of property belonging to a notified person is invalid if the property is held in trust for another. The Court established that the proceeds from the sale of shares, which were to be paid to the Appellant, do not belong to Respondent No.2 but are held in trust, thus the attachment of Rs. 2.90 crores is void. The Court ordered further inquiry into the sale proceeds to ascertain the rightful ownership of the funds.