2019 (8) TMI 10 - AT - Money Laundering

Vicarious liability for the offences punishable under Sections 120-B read with 420 I.P.C. and Section 12 of the Prevention of Corruption Act - nonapplication of judicial mind - HELD THAT - This Tribunal is of the view that let the final outcome of Supreme Court is come, thereafter these appeals be heard and are decided, because one of the parties, who is party to common order, is contesting the appeals filed by CBI, let the further proceedings be adjourned till the said order is passed. This Tribunal is of the opinion that once the view has already been taken, it is appropriate not to disturb the same. As far as interim order is concerned, the appellants have made a strong case in their favour.

Summary

Issues:
1. Challenge to common order by appellants.
2. Modification of status quo order.
3. Decision of High Court of Hyderabad.
4. Pending appeal by CBI against India Cement Ltd.
5. Consideration of personal liability of Mr. N. Srinivasan.
6. Determination of alleged money laundering offences by India Cements.
7. Continuation of interim order.

Issue 1: The five appeals were filed by the appellants challenging the common order passed by the Adjudicating Authority on 04th August, 2015. The interim order was modified on 17th August, 2016, extending it to cover the rolling over of the interest amount accrued. The matter was adjourned awaiting the decision of the Supreme Court.

Issue 2: The High Court of Hyderabad passed a judgment quashing the proceedings against Mr. N. Srinivasan, Vice Chairman and Managing Director of India Cements Ltd., in favor of the petitioner. The judgment detailed instances of alleged illegal gratification by India Cements Ltd. into companies of Sri Y.S. Jagan Mohan Reddy. The High Court's decision was sub-judice before the Supreme Court, and the Tribunal decided to await the Supreme Court's decision before passing any final order.

Issue 3: The pending appeal by the CBI against India Cement Ltd. was discussed, emphasizing that the High Court of Andhra Pradesh had quashed the proceedings against Mr. N. Srinivasan. The Tribunal noted that the present proceedings did not involve determining personal liability but focused on alleged money laundering offences by India Cements.

Issue 4: The Tribunal reserved the order in four appeals, except the one filed by India Cement Ltd. It was decided to wait for the final outcome of the Supreme Court's decision before proceeding with the appeals, as one party was contesting the appeals filed by the CBI. The interim order favoring the appellants was to continue until the final order in the appeals.

In conclusion, the Tribunal addressed various legal issues, including challenges to the common order, modifications of interim orders, decisions of the High Courts, and pending appeals. The focus was on the alleged money laundering offences by India Cements and the personal liability of Mr. N. Srinivasan. The Tribunal decided to await the Supreme Court's decision before proceeding further and maintained the interim order in favor of the appellants.