2020 (3) TMI 1288 - HC - Money Laundering

Notice of eviction for attaching the properties - section 26 of Prevention of Money Laundering Act, 2002 - Case of respondent is that no doubt law gives the petitioners period of 45 days but they cannot be permitted to create third party interest in the subject matter - HELD THAT - The interest of justice can be met with by directing respondent not to implement the notice of eviction for period of 55 days from 18/2/2020 that is the date of service of the order of confirmation of attachment - Petitioners shall however in the meanwhile not create third party interest and shall not encumber the said property. Petition disposed off.

Summary

Issues:
Challenge to order of provisional attachment, Statutory appeal under Prevention of Money Laundering Act, Time period for appeal, Notice of eviction, Third party interest, Direction regarding implementation of eviction notice, Prohibition on creating third party interest, Disposal of the petition.

Analysis:
The petitioners have challenged the order of provisional attachment dated 16/8/2019, which was confirmed by the adjudicating Authority on 7/2/2020. The confirmation order was extensive, spanning about 289 pages. The petitioners are seeking to file a statutory appeal under section 26 of the Prevention of Money Laundering Act, 2002, which allows a period of 45 days for such appeals. The Respondent Authority promptly issued a notice of eviction for attaching the properties, granting the petitioners 10 days to comply. The petitioners' main request is for time to approach the Appellate Authority to seek appropriate orders.

The Respondent's counsel acknowledged the facts and the 45-day appeal period granted by law but raised concerns about the creation of third-party interests in the subject matter. It was clarified that the 10-day period mentioned in the eviction notice would commence after the 45-day appeal period expires. To address the situation, the Court directed that the eviction notice not be implemented for 55 days from 18/2/2020, the date of service of the confirmation order. The petitioners were instructed not to create third-party interests or encumber the property during this period.

The Court's directive regarding the implementation of the eviction notice was contingent upon the orders that the Appellate Authority may deem appropriate in the exercise of its jurisdiction. The petition was disposed of with these arrangements in place, ensuring that the interests of justice were served while maintaining the integrity of the legal process.