IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
Jagdish Singh Raghuvanshi @ Jagdish Singh S/o Late Shivadan Singh – Petitioner
Versus
State of Jharkhand – Respondent
W.P. (Cr.) No. 162 of 2021
Decided On : 10-05-2022
Eviction Notice - Property Dispute - Prevention of Money Laundering Act, 2002 [Section 8, 9, 26] - The court discussed the provisions of the Prevention of Money Laundering Act, 2002, particularly sections 5, 8, 9, and 26, and the rules related to adjudication, attachment, and possession of properties involved in money laundering. The court emphasized the procedures for issuing notices, hearing the aggrieved party, and the availability of alternative remedies under the Act.
Fact of the Case:
The petitioner filed a writ petition to quash an eviction notice issued by the Enforcement Directorate. The petitioner claimed possession of the property through an agreement and subsequent purchase, while the Enforcement Directorate asserted that the property belonged to a person facing money laundering charges.
Finding of the Court:
The court found that the petitioner was not the owner of the property and that the property was involved in a money laundering case. The court emphasized the procedures for adjudication and the availability of alternative remedies under the Prevention of Money Laundering Act, 2002.
Issues: The issues involved the ownership of the property, the validity of the eviction notice, and the applicability of the Prevention of Money Laundering Act, 2002.
Ratio Decidendi: The court emphasized the procedures for adjudication and the availability of alternative remedies under the Prevention of Money Laundering Act, 2002, and dismissed the writ petition.
Final Decision: The court dismissed the writ petition, stating that the petitioner could avail remedies under the law and that the pendency of the writ petition would be considered for the purpose of limitation if it arises.
JUDGMENT :
SANJAY KUMAR DWIVEDI, J.
1. Heard Mr. Kalyan Roy, the learned Senior counsel assisted by Mr. Sidhartha Roy, the learned vice counsel appearing on behalf of the petitioner, Mr. Amit Kumar Das, the learned counsel assisted by Mr. Shivam Utkarsh Sahay, the learned vice counsel appearing on behalf of the respondent nos. 2 and 3 (Enforcement Directorate) and Mr. Rahul Kumar, the learned counsel appearing on behalf of the respondent nos. 6 to 8.
2. By order dated 29.11.2021 the notices were issued upon the respondent nos. 5 to 9 (now, respondent nos. 4 to 8). The respondent no. 5 has been served through her son. The respondent no. 6 has been served personally. The petitioner has filed supplementary affidavit stating therein that the petitioner made personal service of notice upon the respondent nos. 5 and 6 (now, respondent nos. 4 and 5) and both are residing together. Thereafter, this matter was adjourned to 28.04.2022 and 09.05.2022, however, the respondent nos. 5 and 6 (now, 4 and 5) have chosen not to appear in the Court. Mr. Rahul Kumar, the learned counsel has appeared for respondent nos. 6 to 8.
3. This petition has been filed for quashing the eviction notice dated 08.06.2021 issued by the respondent no. 5 whereby the petitioner has been directed to vacate the premises being holding no. 2154/A/228, MIG House No. M-28 situated at Mauza Bariatu Booty Road, Ranchi within 10 days of receipt of the notice.
4. Mr. Kalyan Roy, the learned counsel appearing on behalf of the petitioner submits that by virtue of an agreement this petitioner has come into possession of the property in question from the year 1991 itself and the petitioner has purchased the property in question by a sale deed dated 04.8.1993 in the name of his wife. He submits that due to family dispute the wife of this petitioner has deserted and thereafter she sold the property in question to one Pawan Kumar Singh by a sale deed dated 08.9.2005. He submits that said Pawan Kumar Singh is an accused in a case of money laundering and was facing the complaint with regard to ECIR/02/PAT/2012. He further submits that pursuant to that proceeding, the petitioner has been directed to vacate the premises in question. He submits that this notice has been issued without hearing the petitioner. He further contends that the provisional attachment order was passed in view of section 6 on 05.02.2021 in Original Complaint No. 1344/2020 and in that complaint, by order dated 05.02.2021 provisional order of attachment was passed and in provisional attachment order also the petitioner was not heard. He further submits that for the property in question Title Suit being Title Suit No. 212/2005 has been filed by this petitioner which is still pending. He further submits that in the suit, the respondents are not appearing. He further advanced his argument by way of referring section 8 of the Prevention of Money- Laundering Act, 2002 [hereinafter to be referred to as ‘the Act’] and submits that how the cases arising under the said statute are required to be adjudicated is prescribed therein. He submits that this section clearly provides that any person against whom any order is being passed is required to be heard and ignoring this provision, the order has been passed against the petitioner. He further draws the attention of the Court to Rule-5 of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority), Rules, 2013 [hereinafter to be referred to as ‘the Rules’] and submits that the manner of taking possession of the immovable property is made in the Rule-5. He submits that how the notice is required to be served is prescribed under the Rule 6 of the said Rules and also the Form-I and II is prescribed therein which is the mode of notice. He submits that all these statutory provisions have not been followed and the petitioner has already been evicted. He further submits that this matter was taken up on 28.06.2021, howeve
The main legal point established is the importance of following the procedures for adjudication and the availability of alternative remedies under the Prevention of Money Laundering Act, 2002.
Possession under Section 8(4) of the PMLA should be an exception, not a rule, and requires careful consideration of the case's specific circumstances.
The court established that taking possession under Section 8(4) of the PMLA requires a formal confiscation order and cannot be done arbitrarily.
Co-ownership grants rights for aggrieved parties to appeal eviction orders under money laundering laws, emphasizing that eviction procedures must respect rules on joint properties.
Properties acquired before the commission of an alleged offence cannot be attached under the Prevention of Money Laundering Act, and due process must be followed in such proceedings.
The court emphasized the availability of an alternate efficacious remedy within the scope of the PMLA Act and upheld the decision to relegate the Appellant/Bank to the Adjudicating Authority.
The impugned order was passed without proper appreciation of the provisions of PMLA, 2002 and PMLA Rule, 2016, and was set aside.
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