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TMI Blog2024 (1) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... einafter referred to as "PMLA") punishable under section 4 of PMLA arising out of ECIR bearing no. ECIR/7/DZ/2008 dated 12.05.2008 along with consequential proceedings pending before the concerned court. 2. Briefly stated, the facts of the case are that FIR bearing no. 27/2008 was got registered under section 420 of the Indian Penal Code, 1860 (hereinafter referred to as "IPC") and sections 18/19 of the Transplantation of Human Organs Act, 1994 (hereinafter referred to as "TOHO Act") at P.S. Palam Vihar, Gurgaon. The investigation of the abovementioned FIR was entrusted to CBI and consequently, RC/1(E)/08/CBI/EOU-VII/ND was registered under sections 326/342/417/465/473/ 307/506/120B IPC and sections 18/19/20 of TOHO Act by the CBI being th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the Supreme Court in Vijay Madanlal Choudhary V Union of India, 2022 SCC OnLine SC 929; judgment of Division Bench of this Court in Harish Fabiani and Others V Enforcement Directorate and Others, 2022 SCC OnLine Del 3121; judgments of Coordinate Benches of this Court in Nayati Healthcare and Research Pvt. Ltd. And Others V Union of India Ministry of Home Affairs and Another, W.P.(CRL) 2871/2022, decided on 11.10.2023; in Prakash Industries Ltd. and Another V Directorate of Enforcement, 2022 SCC OnLine Del 2087; in Directorate of Enforcement V Gagandeep Singh and Others, 2022 SCC OnLine Del 514 and in Arun Kumar Mishra V Directorate of Enforcement, 2015 SCC OnLine Del 8658. The learned Senior Counsel also cited various other judgments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty connected with such property, which constitutes the offence of money-laundering. The Authorities under the 2002 Act cannot prosecute any person on notional basis or on the assumption that a scheduled offence has been committed, unless it is so registered with the jurisdictional police and/or pending enquiry/trial including by way of criminal complaint before the competent forum. If the person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the Court of competent jurisdiction, there can be no offence of money-laundering against him or any one claiming such property being the property linked to stated scheduled offence through him. 9. A Division Bench of this Court in Harish Fabiani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... althcare (supra) has also considered the issue whether the prosecution initiated by the respondent/ED can be continued in a case where the accused has already been acquitted/discharged for the predicate offence. The relevant portion of the aforesaid judgment is reproduced as under:- 10. In Nik Nish Retail Ltd. (supra) [Nik Nish Retail Ltd. V Assistant Director, Enforcement Directorate, 2022 SCC OnLine Cal 4044], the Calcutta High Court also dealt with a case where the FIR in respect of the predicate offence was quashed on the basis of settlement. Following the aforesaid findings of Vijay Madanlal Choudhary (supra), the complaint of the ED was quashed. The relevant observations of Nik Nish Retail Ltd. (supra) are set out below:- 34. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edicate offence had been quashed. 13. The Telangana High Court in Manturi Shashi Kumar (supra) [Manturi Shashi Kumar V Director, Directorate of Enforcement, 2023 SCC OnLine TS 1098] has also quashed a complaint under Section 3 of the PMLA on the grounds of the accused being discharged/acquitted of the scheduled offence. The relevant observations of the said judgment are set out below:- 28. Thus, according to Supreme Court, the offence under Section 3 of PMLA is dependent on illegal gain of property as a result of criminal activity relating to a scheduled offence. If the person is finally discharged or acquitted of the scheduled offence or the criminal case against him is quashed by the court, there can be no offence of money laundering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this subject is either referred to a larger Bench or a review petition relating thereto is pending. We have also come across examples of High Courts refusing deference to judgments of this Court on the score that a later Coordinate Bench has doubted its correctness. In this regard, we lay down the position in law. We make it absolutely clear that the High Courts will proceed to decide matters on the basis of the law as it stands. It is not open, unless specifically directed by this Court, to await an outcome of a reference or a review petition, as the case may be. It is also not open to a High Court to refuse to follow a judgment by stating that it has been doubted by a later Coordinate Bench. In any case, when faced with conflicting judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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