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TMI Blog2023 (1) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... set the criminal process in motion against anyone. There may be an FIR. There may even be a charge-sheet. But, except in certain specific statutes, the presumption in criminal jurisdiction in this country is still that a person is innocent until he is proved guilty. Today, even charges have not been framed. It is entirely possible that the court in question, when it takes up the charge-sheet, may not in fact frame charges against the Petitioner at all. Even that is not known. The Petitioner may apply for or may obtain a discharge or a quashing order at some appropriate stage. Even that is unknown. The impugned order seems to us to have completely overlooked the inherent absurdity that it creates. It proceeds on the basis that the mere pendency of a criminal proceeding robs a person such as the Petitioner of his fit and proper person status because it supposedly affects his integrity, reputation and character . We note that there is no case about the absence of a conviction, restraint orders, competence, or financial solvency. But if any of the eventualities that we have noted above occurs, i.e., no charges are framed, there is a discharge, quashing or an acquittal, we are ask ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecutive action in judicial review is whether the standard applied is reasonable and proportionate. Other well settled tenets of natural justice are of course that an opportunity of being heard must be given and that a reasoned order must be passed. Equally, no authority can exercise jurisdiction that is not vested in it. A hearing is not to be an empty formality. It must be an effective hearing and must result in a reasoned order that reflects a proper application of mind. This speaks to the decision-making process, not the resultant decision itself. Where these elements are found even prima facie to be lacking, a writ Court is not denuded of its powers, nor can it be told that its extraordinary jurisdiction is completely fettered. 4. Where the petitioner is able to prima facie dispute the existence of an effective alternate appellate remedy, that is to say, where the petitioner points out that if the alternate appellate remedy invoked by the respondent is likely to result in a serious question of jurisdiction or maintainability of the appeal, a writ court can certainly exercise its discretionary and equitable powers under Article 226 of the Constitution of India. 5. The fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Emphasis added) 12. The Rules also provide that throughout the period of registration, that is to say as long as the person is registered, these qualifications and eligibility criteria must be maintained. 13. Some time in September 2019, a First Information Report No. 86 of 2019 came to be registered by the Economic Offences Wing ( EOW ) through its Banking Unit-II, a Division of Mumbai Police. This was directed against certain officials of the PMC . The case was one of on creation of fictitious and the siphoning off huge sums of money for the benefit of a corporate entity known as Housing and Development Infrastructure Ltd ( HDIL ). That company was already being put through the insolvency and bankruptcy process apart from other criminal charges against its various directors. 14. The consultancy of which the Petitioner was a promoter-director, Yardi Prabhu Consultants, had PMC as a client. The Petitioner was not on the board of HDIL. The Petitioner was not on the board of PMC. That bank had a panel of valuers. Yardi Prabhu Consultants was one amongst several valuers on the panel of the PMC. It is because of this association that the EOW called the Petitioner for enqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in pursuance of rule 15 and rule 17 of the Companies (Registered Valuers and Valuation) Rules, 2017, hereby, suspends the registration of Mr. Vishwanath Shridhara Prabhu as a registered valuer till he is exonerated of the charges. 6. In accordance with provisions of Rules 174(8) of the Valuers Rules, the directions of this order shall come into force with immediate effect in view of para 5 above. 7. A copy of this order shall be forwarded to IIV India Registered Valuers Foundation where Mr. Vishwanath Shridhar Prabhu is enrolled as a member. 8. Accordingly, the show cause notice is disposed of. (Emphasis added) 18. On 6th August 2022, the Petitioner made a representation to the Union of India pointing out that the impugned order had no cogent reasons and was contrary to law. There is no response. Hence this Petition. 19. What is important for our purposes today are paragraphs 4.5, 4.6 and 4.7 of the impugned order at page 21. These are reproduced below. 4.5 The Authority has considered the SCN, the reply of Mr. Prabhu and the oral submissions made by his advocate and materials available on record. Mr. Prabhu has submitted that the entire case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the foregoing, the Authority finds that pendency of the criminal proceeding against Mr. Prabhu for the offences as stated above, adversely affected his integrity and reputation and makes him a person who is not fit and proper to be eligible as a RV. Hence, the Authority finds that this is in violation of Rule 3(1)(k) of the Companies (Registered Valuers and Valuation) Rules, 2017. (Emphasis added) 20. On the face of it, it is difficult to comprehend the reasoning, logic or rationale in this order, especially in paragraph 4.7. Anyone may set the criminal process in motion against anyone. There may be an FIR. There may even be a charge-sheet. But, except in certain specific statutes, the presumption in criminal jurisdiction in this country is still that a person is innocent until he is proved guilty. Today, even charges have not been framed. It is entirely possible that the court in question, when it takes up the charge-sheet, may not in fact frame charges against the Petitioner at all. Even that is not known. The Petitioner may apply for or may obtain a discharge or a quashing order at some appropriate stage. Even that is unknown. We believe that in fact a quashing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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