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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Mars Envirotech Ltd. - Appellant
Versus
Directorate of Enforcement - Respondent
W.P.(C) 15015 of 2021 & CM Appl. 47398 of 2021
Decided On : 23-12-2021




The court upheld the necessity to maintain status quo during ongoing appeal proceedings due to the non-functionality of the appellate tribunal.

Headnote:(A) Prevention of Money Laundering Act, 2002 - Statutory appeal process - Possession notice - Petitioners contest the legality of a possession notice dated 17.09.2021 issued while an appeal is pending before the Appellate Tribunal due to lack of quorum - The petitioners pray for a stay until the appeal is heard. (Para 2)

(B) Writ Jurisdiction - The court recognizes the need to maintain status quo in light of the Appellate Tribunal's non-functionality. (Para 4)

Facts of the case:
The petitioners challenge a possession notice alleging procedural irregularities due to an ongoing statutory appeal that is stalled because the Tribunal lacks a quorum.

Findings of Court:
The court partly allows the writ petition and directs that the status quo be maintained regarding the subject matter of the impugned order until the resolution of the petitioners' appeal.

Issues: The core issue addressed is whether the notice can be enforced given the pending statutory appeal and the non-functionality of the Tribunal.

Ratio Decidendi: The court held that, without functioning oversight from the Appellate Tribunal, it is necessary to preserve the status quo to avoid irreparable harm to the petitioners.

Result: Writ petition partly allowed.

Table of Content
1. possession notice issued by the respondent. (Para 1)
2. petitioners argue against possession notice due to appeal pending. (Para 2)
3. tribunal not functional, government acknowledges. (Para 3)
4. court orders maintenance of status quo. (Para 4)
5. court's order does not prejudice tribunal's future decisions. (Para 5)

JUDGMENT

Sanjeev Sachdeva, J. (Oral)

CM APPL. 47399/2021 (Exemption)

Allowed, subject to all just exceptions.

W.P.(C) 15015/2021

1. The petitioners assail the possession notice dated 17.09.2021 issued by the respondent.

2. Learned counsel for the petitioners submits that being aggrieved by the impugned order, the petitioners have already preferred a statutory appeal along with an application for stay in February, 2021 before the Appellate Tribunal, PMLA, which is not being taken up for consideration as the Tribunal is presently not functional for want of quorum. He submits that taking benefit of the said fact, the respondents have already issued the impugned possession notice on 17.12.2021 and are threatening to take possession of the premises which form subject matter of the adjudication order dated 14.01.2021. He, therefore, prays that the operation of the impugned order and notice be stayed till the petitioners' appeal is taken up for consideration by the Tribunal.

3. Issue notice. Mr. Amit Mahajan, CGSC, accepts notice on behalf of the respondents and is not in a position to dispute the fact that the Appellate Tribunal is presently not functional.

4. In these circumstances, the writ petition is partly allowed by directing the parties to maintain status quo qua the subject matter of the impugned order till the petitioner's appeal and application assailing the order dated 14.01.2021 are taken up by the Tribunal. Consequently, the respondents will stand restrained from taking any further action in pursuance of the impugned order and notice till then.

5. Needless to state, this Court has not expressed any opinion on the rival contentions of the parties. It is further made clear that this order will merge with any order which may be passed by the Tribunal in the petitioner's appeal and application, as and when it becomes functional.

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