2020 (6) TMI 115 - HC - Money Laundering

Freezing of petitioner's Bank Accounts - permission to petitioner to pay the salaries to the employees for the month of April, 2020 by encashing FDRs of equivalent amounts - HELD THAT - The petitioner is permitted to furnish to the respondents within 24 Hrs., list of the employees to whom the salaries have to be paid for the month of April, 2020. Respondents shall verify the list and convey their approval and objection, if any, with regard to any name, within 24 Hrs. of the receipt of the list from the petitioner. They shall send a communication to the Banks forthwith to enable the petitioner pay salary to its employees for the month of April, 2020, by operating / encashing the FDRs of the equivalent amount, (equivalent to the salaries to be paid to the employees). The petitioner is permitted to deposit the TDS and connected statutory dues (if any) with the authorities. That apart, petitioner is also permitted to open one account each in HDFC Bank and DCB respectively. The monies received by the petitioner from the lenders / customers shall be deposited in these accounts. The petitioner shall not withdraw any amount from the said accounts till the next date of hearing. List on May 20, 2020.

Summary

Issues:
1. Application for exemption from filing court fees/notarized affidavits.
2. Permission to place subsequent facts, additional grounds, documents, and prayer on record.
3. Ad-interim ex-parte order staying the freezing of bank accounts/FDRs.
4. Clarification/direction regarding opening and operating new bank accounts.

Analysis:
1. The judgment begins with the court allowing the applicant/petitioner's application seeking exemption from filing court fees/notarized affidavits subject to filing the necessary court fee within 72 hours from the date of the court's regular functioning resumption, as per the Office Order dated April 04, 2020. The exemption is granted based on the reasons stated in the application.

2. Another application sought permission to place subsequent facts, additional grounds, documents, and prayer on record, which was allowed by the court. The applicant was directed to file an amended writ petition by a specified date.

3. The court addressed the issue of freezing bank accounts/FDRs and the operation of such orders. The respondents were instructed not to encash/operate certain FDRs and were in the process of issuing a fresh attachment order. Accounts with no money were not attached. The court directed the respondents to file a reply by a specific date, including additional facts, grounds, and prayers allowed in a previous application.

4. Interim applications were pressed by the petitioner's counsel, seeking an ad-interim ex-parte order to stay the freezing of bank accounts/FDRs. The court allowed the petitioner to pay salaries to employees for the month of April 2020 by encashing FDRs of equivalent amounts, subject to verification by the respondents. Additionally, the petitioner was permitted to open new bank accounts for future transactions and liabilities, with restrictions on withdrawals until the next hearing date.

In conclusion, the judgment addresses various applications related to exemptions, amendments, freezing of accounts, and directions for future transactions, ensuring a balanced approach to the parties' requests and the legal procedures involved.