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IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Frost International Ltd. & Ors. – Appellants
Versus
Directorate of Enforcement & Anr. – Respondents
W.P.(C) 3852 of 2022 & CM APPL. 27740 of 2023
Decided On : 23-05-2023
Money Laundering - Impugned Judgment - Prevention of Money Laundering Act, 2002 - Section 8
Fact of the Case:
The petition challenges the impugned judgment and provisional attachment order under Section 8 of the Prevention of Money Laundering Act, 2002 (PMLA) regarding the attachment of certain assets of the Petitioners.
Finding of the Court:
The Court restrained further steps under Section 8 of the PMLA and the Petitioner from disposing of the properties subject to the provisional attachment order. The matter is pending, and an application has been filed due to the company's insolvency proceedings.
Issues: The expiry of the 180-day period after the provisional attachment order, non-functioning of the Appellate Tribunal, and the effect of the Insolvency and Bankruptcy Code, 2016 (IBC) on the attachment of assets.
Ratio Decidendi: The Court allowed the Petitioner to approach the Appellate Tribunal for restoration of its appeal and filing of a stay application. The applicability of the IBC and its effect was to be considered by the Appellate Tribunal. The Court did not express any view on the merits of the case.
Final Decision: The petition and pending applications are disposed of, with the Court canceling the next date of hearing.
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.
2. The present petition has been filed challenging the impugned judgment dated 28th February 2022 passed by the Adjudicating Authority in Original Complaint No. 1503 of 2021 and the impugned Provisional Attachment Order No. 09 of 2021 (hereinafter `PAO') dated 28th June, 2021 whereby certain assets of the Petitioners have been attached under Section 8 of the Prevention of Money Laundering Act, 2002 (hereinafter `PMLA'). The details of the properties are as under-
| Sr. No. | Property Holder | Description of Property | Value in Rs.(in Crores) |
| 1. | M/s Frost International Limited | 402, Kalpana Plaza, 24/147 B, Birhana Road, Kanpur | 0.90 |
| 2. | M/s Frost International Limited | Half office accommodation no.403, Kalpana Plaza, 24/147 B, Birhana Road, Kanpur | 0.41 |
| 3. | M/s Frost International Limited | Half office accommodation no.403, Kalpana Plaza, 24/147 B, Birhana Road, Kanpur | 0.41 |
| 4. | M/s Frost International Limited (earlier known as Meta Cam) | 410, Kalpana Plaza, 24/147 B, Birhana Road, Kanpur | 0.33 |
| 5. | M/s Frost International Limited | 411, Kalpana Plaza, 24/147-B, Birhana Road, Kanpur | 0.29 |
| 6. | M/s. R.S. Builders Pvt. Ltd. | One Part of 114/107, Lakhanpur, Kanpur | 1.76 |
| 7. | Smt. Suman Jayant Desai (since expired on 06.01.2019) and Mr. Uday Jayant Desai | One Part of 114/107, Lakhanpur, Kanpur | 1.76 |
| 8. | M/s Frost International Limited | Property C-69, Okhla Industrial Area, Phase-I, New Delhi | 11.13 |
| 9. | M/s Frost International Limited | S-279, Panchsheel Park, New Delhi | 13.61 |
| 10. | Mr. Sunil Lalchand Verma | 510-511, B-Wing, Crystal Plaza, Andheri West, Mumbai | 1.54 |
| 11. | Smt. Nilima Uday Desai and Rita Sunil Verma | D-954, 3rd Floor, New Friends Colony, New Delhi | 8.90 |
| 12. | Mr. Anoop Kumar Baldevraj Wadhera and Smt. Poonam Anoop Kumar Wadhera | T-18/1, DLF City Phase 3, Gurgaon, Haryana | 5.92 |
| 13. | Mr. Anoop Kumar Baldevraj Wadhera and Smt. Poonam Anoop Kumar Wadhera | T-18/2, DLF City Phase 3, Gurgaon, Haryana | 4.12 |
| 14. | M/s Frost International Limited | C-70, Okhla Ind. Estate, Phase-I, New Delhi' | 11.13 |
| 15. | M/s Frost International Limited | 907-908, 9th Floor, The Meadows Tower, Sahar Plaza, Kondvita Village, J.B. Nagar, Andheri (East), Mumbai 400059 | 6.75 |
| 16. | M/s Frost International Limited | 909-910, 9th Floor, The Meadows Tower, Sahar Plaza, Kondvita Village, J.B. Nagar, Andheri (East), Mumbai 400059 | 7.59 |
| 17. | M/s Frost International Limited | Office Space 4, 4A, 4B, 4C, 4D on the third floor at SB Tower premises no.37, Shakespeare Sarani, Ward 63 of KMC Kolkata | 10.09 |
| 18. | M/S Globiz Exim Pvt. Ltd. | Shop No.1 to 4, Oberoi Chambers-1, CTS No.645, Village Oshiwara, Andheri West, Mumbai' | 18.36 |
| 19. | M/s NSD Nirman Pvt. Ltd. | Shop 101 to 108, 1st Floor, Oberoi Chambers 1, Plot bearing CTS No.645 and 646, Off Link Road, Village Oshiwara, Andheri West, Mumbai-40058 | 23.69 |
| 20. | M/s Frost International Limited | Apartment No.T-22, 401, Tower 22, Apt. No.401, third Floor, admeasuring 2830.04 sq. ft., Commonwealth Games Village, National Highway-24, Adjacent to Akshardham Temple, Noida Crossing, Delhi-110092 | 7.02 |
| 21. | M/s Frost International Limited | Office Unit No. 709, 7th Floor, C Wing bldg.. One-BKC, Bandra Kurla Complex, G Block Plot No. C-66, Bandra (E), Distt. Mumbai-40051 in the name of Frost International Limited, | |
| 22. | M/s Frost International Limited | Residential Flat on Ground Floor of Plot No. 38 Block-E, Greater Kailash Part-1, New Delhi | 5.14 |
| 23. | M/s Frost International Limited | Land at SF No 188/3A, Village Kalanaga Rajpatti, Tuticorin, Tamilnadu | 0.026 |
| 24. | M/s Frost International Limited | Land at S.F. No 338/8A, Sayamalai, Tirunelveli, Tamilnadu | 0.0325 |
| 25. | M/s Frost International Limited | Land at S.F. No 22/1 Chittikalam Tirunelveli, Tamilnadu | 0.0375 |
| 26. | M/s Frost International Limited | Land at S.F. No 96/1A & 96/1B, Village Mahendravadi, Tirunelveli, Tamilnadu | 0.03 |
| 27. | M/s Frost International Limited | Land at S.F. No 100/2 & 100/3, Village Kalanaga Raipatti, Tuticorin, Tamilnadu' | 0.028 |
| 28. | M/s Frost International Limited | Office No. 406 Shail's Mall Changispur, Taluka City, Ahmedabad, in name of FIL | 0.19 |
| 29. | M/s Frost International Limit | ||
The Court considered the applicability of the Insolvency and Bankruptcy Code, 2016 (IBC) and the effect of its declaration of moratorium on the attachment of assets under the Prevention of Money Laun....
The central legal point established in the judgment is the need for comprehensive consideration of the issue by the Appellate Tribunal under the PMLA Act and the implications of the establishment of ....
The maintainability of a petition challenging impugned orders under the Prevention of Money Laundering Act (PMLA) when the same orders had already been dealt with in a previous order, and the petitio....
The main legal principle established is that properties to be proceeded against under PMLA must be connected to the criminal activity, and ex facie illegal acts can be interfered with under Article 2....
The court emphasizes that when statutory remedies are available, the extraordinary jurisdiction under Article 226 of the Constitution should not be exercised unless there are exceptional reasons to d....
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