2020 (3) TMI 85 - HC - Money Laundering

Maintainability of appeal - money laundering - an appeal under section 42 of the Prevention of Money Laundering Act, 2002 has been filed by the Central Government and the same has been registered as APO - HELD THAT - Section 54 of the Foreign Exchange Regulation Act, 1973 and section 35 of the Foreign Exchange Management Act, 1999 are pari materia with section 42 of the 2002 Act, yet, absence of any reference to the 2002 Act in the said Rules is a bit surprising. Absence of a code number for appeals that are carried in terms of or under section 42 of the 2002 Act and presented before this Court has resulted in assigning case code APO to this appeal. This is coupled with the omission in the said Rules to indicate which Bench would have the determination to entertain such an appeal, which has resulted in the aforesaid order of assignment. Although, the High Court has inherent power to frame rules, and rules have also been framed to regulate the procedure of hearing of appeals under various enactments, rules of procedure for hearing of appeals under the 2002 Act are conspicuous by its absence in the said Rules or elsewhere in the Original Side Rules and this we view as a serious omission, which must be addressed at the earliest. Since the appeal has been registered with case code APO and assigned to us, we have proceeded to consider the same. The appeal is time barred and an application seeking condonation of delay in its presentation has been preferred by the appellant - Let such application be served on the respondent within five days from date with intimation that the same shall be listed on next Wednesday (22.1.2020).

Issues:
1. Amendment of Original Side Rules of the Court.
2. Registration of appeals under different Acts.
3. Absence of case code for appeals under section 42 of the Prevention of Money Laundering Act, 2002 (2002 Act).
4. Assignment of case code APO to the appeal.
5. Lack of rules for hearing appeals under the 2002 Act.
6. Direction to address the omission in rules for appeals under the 2002 Act.
7. Jurisdiction of the High Court for appeals under section 42 of the 2002 Act.
8. Consideration of appeal where the respondent is not within the jurisdiction of the High Court.
9. Time bar on the appeal and application for condonation of delay.
10. Numbering of the application for condonation of delay.

Amendment of Original Side Rules of the Court:
The judgment discusses the amendment of the Original Side Rules of the Court, specifically the incorporation of Part XX containing rules 1 to 17. These rules pertain to appeals and applications under various Acts, including the Income Tax Act, Central Excise Act, Customs Act, Wealth Tax Act, and Foreign Exchange Management Act. The rules also address the registration of different types of appeals under specific codes.

Registration of appeals under different Acts:
The judgment highlights the registration codes assigned to appeals under various Acts, such as 'FEA' for Foreign Exchange Appeal and 'ITA' for Income Tax Appeal. However, it notes the absence of a code number for appeals under the Customs Act and Central Excise Act. The focus shifts to an appeal under section 42 of the 2002 Act, registered as APO due to the lack of a specific code for such appeals.

Absence of case code for appeals under section 42 of the 2002 Act:
The Court addresses the absence of a designated code for appeals filed under section 42 of the 2002 Act, leading to the assignment of case code APO to the present appeal. The judgment highlights the efforts made by the advocate to bring this issue to the Registrar's attention, resulting in the assignment of the unique code for the appeal.

Lack of rules for hearing appeals under the 2002 Act:
The judgment emphasizes the absence of specific rules governing the procedure for hearing appeals under the 2002 Act within the Original Side Rules or elsewhere. This omission is considered significant, and the Court views it as a serious issue that needs prompt attention and rectification.

Direction to address the omission in rules for appeals under the 2002 Act:
The Court directs the registry to bring the omission of rules for appeals under the 2002 Act to the attention of the Chief Justice for consideration by the appropriate Special Committee. The aim is to address the need for rules regarding the registration and hearing procedure of appeals under section 42 of the 2002 Act.

Jurisdiction of the High Court for appeals under section 42 of the 2002 Act:
The judgment delves into the jurisdictional aspect concerning appeals under section 42 of the 2002 Act. It notes the explanation within the Act regarding the competent High Court for such appeals based on the location of the respondent. The Court raises a query regarding the jurisdiction when the respondent's office is outside the Ordinary Original Civil Jurisdiction of the Court.

Consideration of appeal where the respondent is not within the jurisdiction of the High Court:
The judgment raises a crucial consideration regarding appeals where the respondent does not reside or have an office within the Ordinary Original Civil Jurisdiction of the Court. This aspect necessitates evaluation to determine the validity of such appeals within the Original Side of the Court.

Time bar on the appeal and application for condonation of delay:
The Court notes that the appeal is time-barred, prompting the appellant to file an application seeking condonation of delay. The judgment directs the application to be served on the respondent and scheduled for listing. It highlights the importance of adhering to the prescribed time limits for filing appeals under the 2002 Act.

Numbering of the application for condonation of delay:
The judgment points out that the application for condonation of delay has not been numbered by the office. It calls for a review by the Stamp Reporter to determine any delay and assign a number to the application based on the provisions of section 42 of the 2002 Act. This procedural step aims to ensure compliance with the statutory requirements for filing appeals.

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