TMI Blog2019 (12) TMI 1506X X X X Extracts X X X X X X X X Extracts X X X X ..... hall continue till further order - Status quo be maintained at this stage with respect to those properties till next date of hearing. - MP-PMLA-6767/CHD/2019 (U.H.), MP-PMLA-6768/CHD/2019 (Exem.), MP-PMLA-6769/CHD/2019 (Stay), FPA-PMLA-3382/CHD/2019 - - - Dated:- 23-12-2019 - Shri G.C. Mishra : Acting Chairman For the appellant : Mr. Manu Sharma Adv. Ms. Ridhima Mandhar, Adv., Mr. Kartik Khanna, Adv., Mr. Dhruv Sheoran, Adv. For the respondent : Mr. S.K. Sharma, Adv. ORDER MP-PMLA-6767/CHD/2019 (U.H.)MP-PMLA-6768/CHD/2019 (Exem.) MP-PMLA-6769/CHD/2019 (Stay) FPA-PMLA-3382/CHN/2019 Fresh appeal has been filed u/s 26 of Prevention of Money Laundering Act-2002 against the order dated 08.11.2019 passed by the Adjudicating Authority in O.C. no. 1151/2019. Upon hearing, issue notice in the appeal. Mr. S.K. Sharma, ld. counsel for the respondent accepts the notice and seeks time to file the reply. Let the reply be filed within six weeks with an advance copy to the counsel for the appellant who may file the rejoinder four weeks thereafter. List the appeal on 14th May, 2020. Alongwith the appeal, an application for stay of the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated under Section 8(3)(b). But whether such understanding or interpretation will be in tune with the scheme of the Act, and in tune with Constitutional guarantees, is the question that we should address ourselves to. 58. Sub-section (5) of Section 8 declares that the attachment under Section 8(3) shall cease to have effect, if the person concerned is acquitted on conclusion of a trial for any scheduled offence. But if a person is convicted and the order of attachment becomes final in terms of Section 8(3)(b), the Adjudicating Authority may pass an order confiscating such property, under Section 8(6). 59. If the Legislative intent behind Section 8(4) was to take actual physical possession of the attached property, immediately after confirmation of attachment under Section 8(3), but before the attachment attains finality under Section 8(3)(b), then as a corollary of such intent, Section 8(5) should contain a provision for handing over possession back to the accused person, upon his acquittal. But Section 8(5) stops with a mere declaration that upon the acquittal of a person, the attachment confirmed under Section 8(3) shall cease to have effect. Section 8(5) does not speak abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Statute should, as far as possible, be agreeable to justice and reason and that in case of two or more interpretations, one which is more reasonable and just, shall be adopted, for there is always a presumption against the law-maker intending to do injustice. When an interpretation leads to a manifest contradiction of the apparent purpose of the enactment or to some inconvenience or absurdity, hardship or injustice, a construction may be put upon it which modifies the meaning of the words and even the structure of the sentence. Therefore, I am of the view that understanding the expression possession appearing in Section 8(4) of the Act, to mean constructive or symbolic possession, would not only save the validity of Section 8(4), but also save the Constitutional and human rights guaranteed to the accused, victims and third parties who are in possession of such properties. 71. Apart from arriving at the conclusion on the basis of the Constitutional Scheme, I can also derive an additional factor of comfort from a few other provisions of the Act, itself. For instance, Section 10 of the Act, deals with the management of properties confiscated under Chapter III of the Act. Interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfiscation are not frustrated. Once a property is attached and necessary encumbrances are entered in the records of the Sub Registrar and once a prohibitive order is also passed, no alienation can take place. Even if any alienations take place, they would be null and void. Therefore, merely because physical possession is retained by a person accused of the scheduled offences under the Prevention of Money Laundering Act, 2002, it does not mean that the proceedings for confiscation may get frustrated. Section 5(4) of the Act, in fact, makes it clear that nothing in Section 5 shall prevent the person interested in the enjoyment of the immovable property attached under sub-section (1) from such enjoyment. It must be noted that Section 5(4) uses the expression enjoyment of the immovable property . Therefore, without depriving persons interested, from enjoying the immovable property, the respondents can always take symbolic possession under Section 8(4). .. 75.Therefore, it is clear that Section 8(4) cannot be understood to confer a power to take actual physical possession. But the respondents, including the Adjudicating Authority, have understood the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant and Judgment passed by Hon ble High Court of Madras I am of the view that there is a prima facie case in favour of the appellant at this stage, if the appellant and his family members are evicted from the said property as it will cause irreparable injury to the appellant and his family members, so balance of convenience lies in passing a status quo order till the next date of hearing at this stage. In view of the facts and circumstance of the case, both the parties are directed to maintain the status quo‟ with respect to the property in question till the next date of hearing with following conditions: (i) Attachment shall continue till further order. (ii) Status quo be maintained at this stage with respect to those properties till next date of hearing. (iii) The appellants are prohibited from transferring, converting or disposing the immovable properties in question in favour of any third party till the disposal of appeal. (iv) No encumbrances shall be created by the appellant in respect of these immovable properties till disposal of appeal. Respondent is allowed to take the symbolic possession, if not already taken. Liberty is also granted to the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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