Point of law: Provisional attachment - Adjudicating Authority does not become functus officio on expiry of the period of 180 days from the passing of the order of provisional attachment unless such order is confirmed under Section 8(3) in view of the provisions of Section 5(3) of the PMLA.

JUDGMENT :

ARINDAM MUKHERJEE, J.

This is an application inter alia for modification of the order dated 26th March, 2021 passed in the Writ Petition being WPA 8232 of 2020. Although, the scope of the instant application is very limited but, for proper appraisal of the grounds on which the order has been sought to be modified, the basic facts are stated hereinbelow:

1. On the basis of a complaint made on 14th January, 2015 by Sri Pranav Kumar, the then Zonal Head, UCO Bank, Zonal Office, Gariahat Branch, Kolkata,an FIR was registered by Central Bureau of Investigation(CBI, BS & FC), Kolkata. A charge-sheet bearing number 06/2016 dated 18th August, 2016 was filed before the competent Court against the petitioner no. 1 and its directors for offence under Sec. 120- B read with Sections 406 and 420 of the Indian Penal Code (in short ‘IPC’). As Sections 120B, 406 and 420 of IPC are scheduled offence as defined under Section 2 (1) (y) of the Prevention of Money Laundering Act, 2002 (in short ‘PMLA’) an investigation under PMLA was initiated by recording an Enforcement Case Information Report (in short ECIR) number KLZO/17/2016 on 2nd December, 2016 against the petitioner no. 1 and its Directors for alleged commission of offence under Section 3 which is punishable under Section 4 of PMLA. The directors of the petitioner no. 1 have, however, not joined the writ petition as petitioners. The petitioner no. 2 claims to be an authorized signatory.

2. On 20th January, 2020 the Deputy Director, Directorate of Enforcement, Government of India being an officer under the provisions of Section 5 (1) of PMLA passed an order of Provisional Attachment. On 19th February, 2020 a complaint being Complaint no. 1262 of 2020 was filed by the said Deputy Director before the Adjudicating Authority under Section 5(5) of PMLA inter alia stating the facts of attachment and praying for confirmation of the order of provisional attachment dated 20th January, 2020 under the provisions of Section 8(3) of PMLA.

3. On 19th February, 2020, the Adjudicating Authority issued a notice under Section 8(1) of the PMLA.

4. The petitioners filed a writ petition on or about 7th October, 2020. In the said writ petition, on 21 October, 2020 an interim order was passed.

The operative portion of the order is set out hereunder for convenience:

“This Court is of the view that since an adjournment has been prayed for on behalf of the respondents, the respondent should not take any steps in terms of the impugned order until the matter is heard out on merits.”

5. The writ petition was again taken up on 5th February, 2021, when the matter was fixed for hearing in view of the interim order of stay being in operation.

6. On 18th March, 2021 when the matter was again taken up, it was submitted on behalf of the petitioners that the petitioners intended to withdraw the writ petition as the order of provisional attachment had lapsed with the expiry of 180 days in view of the provisions of Section 5 (1) (b) of the PMLA. The petitioners’ prayer was opposed by the respondents no. 2, 3, 4 and 13 and as such the matter was adjourned. On 22nd March, 2021, the petitioners prayer for withdrawal of the writ petition on the ground that the order of provisional attachment had expired by efflux of time under the provisions of Section 5(1)(b) was again opposed by respondents no. 2, 3, 4 and 13 on the ground that the order of provisional attachment according to the said respondents did not expire by efflux of time in view of the order dated 8th March, 2021 passed by the Hon’ble Supreme Court of India in suo motu Writ Petition (C) No. 3 of 2020) (In re: Cognizance of Extension of Limitation). The matter was again taken up on 26th March, 2021, when an order was passed, the operative portion whereof is set out hereunder for convenience:

“The petitioners thereafter wanted to withdraw the writ petition as, according to the petitioners, the order of provisional attachment dated 20th January, 2020 had lost its force on exp