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TMI Blog2023 (12) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... of such record or property seized under sub-section (1) or for continuation of the order of freezing served under sub-section (1A), before the Adjudicating Authority. Admittedly, this procedure has also not been complied with by the authority - It is also well settled that a Sale Certificate which is issued to an Auction Purchaser by a bank in public auction is an evidence of title and the Auction Purchaser derives title on the confirmation of Sale in his favour. This Court does not find any impediment for the Registrar of documents to proceed ahead and register the Sale Certificate in favour of the Petitioner. It is trite law that availability of an alternate remedy alone is not an absolute bar for a High Court to refuse to entertain a petition under Article 226 of the Constitution of India. In the present case, the property in question had been sold in auction to the Petitioner herein before the steps under Section 17 of the PMLA were initiated, and, therefore, this Court in the facts of the present case is inclined to exercise its jurisdiction under Article 226 of the Constitution of India even though the matter is pending before the Tribunal - Petition allowed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is free from any charge and informing that no transfer of the title be allowed pending confirmation of this office. It is stated that based on the said communication, the Registrar of documents has not registered the Sale Certificate in respect of the property in question in favour of the Petitioner on 19.09.2019. 5. Learned Counsel for the Petitioner contends that refusal by the Registrar of documents to register the Sale Certificate executed by the Respondent No. 4/Bank is not in accordance with law for the reason that on the day when the property was put to public auction, there was no communication from the Respondent No. 3/ED to the Registrar of documents regarding restraining of transfer of the property in question and in fact the Respondent No. 4/Bank had not been informed regarding the same. He places reliance upon a Judgment passed by the Apex Court in OPTO Circuits (India) Ltd. vs. Axis Bank, (2021) 6 SCC 707 wherein the Apex Court has held that if the procedure under the PMLA has not been followed, in such circumstances, the properties cannot be attached. 6. Per contra, learned Counsel appearing for the Respondents submits that the same issue is pending adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may make an order to freeze such property whereupon the property shall not be transferred or otherwise dealt with, except with the prior permission of the officer making such order, and a copy of such order shall be served on the person concerned: Provided that if, at any time before its confiscation under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60, it becomes practical to seize a frozen property, the officer authorised under sub-section (1) may seize such property.] (2) The authority, who has been authorised under subsection (1) shall, immediately after search and seizure [or upon issuance of a freezing order], forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasons and material for such period, as may be prescribed. (3) Where an authority, upon information obtained during survey under section 16, is satisfied that any evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an election petition in Chandra Kishore Jha v. Mahavir Prasad [Chandra Kishore Jha v. Mahavir Prasad, (1999) 8 SCC 266] and in the course of consideration observed as hereunder : (SCC p. 273, para 17) 17. It is a well-settled salutary principle that if a statute provides for a thing to be done in a particular manner, then it has to be done in that manner and in no other manner. Therefore, if the salutary principle is kept in perspective, in the instant case, though the authorised officer is vested with sufficient power; such power is circumscribed by a procedure laid down under the statute. As such the power is to be exercised in that manner alone, failing which it would fall foul of the requirement of complying with due process under law. We have found fault with the authorised officer and declared the action bad only insofar as not following the legal requirement before and after freezing the account. This shall not be construed as an opinion expressed on the merit of the allegation or any other aspect relating to the matter and the action initiated against the appellant and its Directors which is a matter to be taken note of in appropriate proceedings if at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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