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TMI Blog2025 (4) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. One Mr. A. Viswanatha Raju filed the above said appeal i.e., FPA-PMLA-221/HYD/2011 under Section 26 of the Prevention of Money Laundering Act (for short "the PMLA") against the orders passed by the Adjudicating Authority in OC No.38/2009, dated 14.01.2010. The genesis for the complaint was a letter dated 07.01.2009 addressed by Mr. B.Ramalinga Raju to the shareholders of M/s SCSL (Satyam Computer Services Limited) intimating that books of accounts of M/s. SCSL were falsified and the financial figures were inflated and the FIR registered on 09.01.2009 on a complaint by one of the investors against Mr. Ramalinga Raju and other promoters of M/s. SCSL under Section 120B r/w Section 406, 420, 467, 471 and 477 of the Indian Penal Code. The case was subsequently taken over by the CBI. Since the commission of offence under Section 467 of IPC is a scheduled offence under the PMLA, the Enforcement Directorate registered a case by filing ECIR dated 23.01.2009. Based on the charge sheet filed by the CBI dated 07.04.2009 and further investigations, having come to a conclusion that the offences of money laundering within the meaning of Section 3 of PMLA was committed, the Deputy Director of E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions and during the pendency of the said appeal Mr. Viswanatha Raju died on 23.08.2014. He submits that the appeal was filed in the year 2010 and on receipt of intimation about its hearing in the year 2023 received from the counsel representing Mr. Viswanatha Raju, his daughter filed an application No.MP-PMLA-12749/HYD/2023 (Misc.) to record her as legal representative of the deceased-appellant before the Hon'ble Appellate Tribunal, but the same was dismissed vide Order dated 13.05.2024 and the Tribunal also dismissed the Appeal on the premise that the same is abated. In elaboration, he submits that the Appellate Tribunal rejected the LR application on the ground that the same was filed beyond the normal period of limitation of 90 days as prescribed under Article 120 of the Limitation Act, 1963 read with Order XXII of the Code of Civil Procedure (for short 'C.P.C.'), and such an application beyond the reasonable period of 90 days may be filed, but it should be supported with an application for condonation of delay by explaining the reasons, but no such application was filed in the instant case. He submits that the order under challenge is misconceived, violative of principles of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel also referred to the decisions of the Hon'ble Supreme Court in Ganesan Rep. by its Power Agent G. Rukmani Ganesan v. Commissioner, Tamilnadu Hindu Religious and Charitable Endowments Board and Others (2019) 7 SCC 108; M.P. Steel Corporation v Commissioner of Central Excise (2015) 7 SCC 58; Consolidated Engg. Enterprises v. Principal Secretary, Irrigation Department and Others (2008) 7 SCC 169; L.S. Synthetics Ltd. v. Fairgrowth Financial Services Ltd. (2004) 11 SCC 456, Commissioner of Sales Tax, UP, Lucknow v. Parson Tools and Plants, Kanpur (1975) 4 SCC 22; U. Subadramma v State of Andhra Pradesh 2016 (7) TMI 1514 = AIR 2016 SC 3095 = AIR 2016 SC (Crl.) 1214; Indus Ind Media and Communication Ltd., Vs Telecom Disputes Settlement and Appellate Tribunal and another 2012 SCC OnLine Bom 799-Bombay High Court etc., and seeks to set aside the order under appeals by answering the questions of Law in favour of the appellant. 10. Per contra, the learned counsel for the respondent made submissions to sustain the order of the Appellate Tribunal. He submits that the order of the Appellate Tribunal is well considered, contains cogent reasons and warrants no interference by this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of CPC are not applicable to it, in the absence of any regulations? C) Whether the impugned order of the Hon'ble Tribunal was passed in violation of principles of natural justice and dismissal of the LR petition and the appeal as abated without giving proper opportunity to the appellant to defend her case, is sustainable? 13. For determination of the questions of Law with reference to the rival contentions, the relevant provisions of the PMLA, may be referred to. As per Section 2 (a) - "Adjudicating Authority" means an Adjudicating Authority appointed under sub-section (1) of Section 6 and; as per Section 2 (b) "Appellate Tribunal" means the Appellate Tribunal [referred to in] Section 25; Section 6 deals with Adjudicating Authorities, composition, powers etc., Chapter XI of the PMLA deals with the Appellate Tribunal and the provisions relating to the same. 14. Sections 25, 26, 35 and 42 of PMLA, which are relevant in the present context, are reproduced hereunder for ready reference: 25 : Appellate Tribunal: The Appellate Tribunal constituted under Sub-section (1) of Section 12 of the Smugglers and Foreign Exchange Manipulators (forfeiture of Property) Act, 1976 sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter, which may be, prescribed by the Central Government. (3) An order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. (5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of Sections 193 and 228 of the Indian Penal Code, 1860 and the Appellate Tribunal shall be deemed to be a civil court for the purposes of Sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1874). 42. Appeal to High Court:- Any person aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any question of law or fact arising out of such order. Provided that the High Court may, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keep the proceedings alive in the hands of one who can pursue, otherwise it would be in the hands of a dead person, who cannot pursue the litigation and therefore, the substitution of the deceased is to be made within a reasonable time. It expressed the view to the effect that application for substitution of deceased after reasonable period of three months can be filed, but it is to be supported by an application for condonation of delay, after explaining the reasons, but no application was filed for condonation of the delay in the case before it. It also relied on the decision of the Hon'ble Supreme Court in Shri Puran Singh v. State of Punjab (1996) 2 SCC 205. The Appellate Tribunal while dismissing the said application also dismissed the Appeal as abated. However, this Court is not inclined to subscribe to the view taken by the Appellate Tribunal. 18. Article 120 of the Limitation Act reads as follows: Art. No. Description of Application Period of limitation Time from which period beings to run 120. Under the Code of Civil Procedure, 1908 (5 of 1908), to have the legal representative of a deceased plaintiff or appellant or of a deceased defendant or respondent, made a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in place of such person and the provisions of Section 26 shall, so far as may be, apply, or continue to apply, to such appeal. (2) where - (a) after passing of a decision or order by the Appellate Tribunal, no appeal has been preferred to the High Court under Section 42; or (b) any such appeal has been preferred to the High Court, then - (i) in a case referred to in clause (a), the person entitled to file the appeal dies or is adjudicated an insolvent before preferring an appeal to the High Court, or (ii) in a case referred to in clause (b), the person who had filed the appeal dies or its adjudicated an insolvent during the pendency of the appeal before the High Court, then, it shall be lawful for the legal representatives of such person, or the official assignee or the official receiver, as the case may be, to prefer an appeal to the High Court or to continue the appeal before the High Court in place of such person and the provision of Section 42 shall, so far as may be, apply, or continue to apply, to such appeal. (3) The powers of the official assignee or the official receiver under sub-section (1) or sub-section (2) shall be exercised by him subject to the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court answered the questions formulated by it at Para Nos.60.1 and 60.2 as follows: 60.1 The applicability of Section 29 (2) of the Limitation Act is with regard to different limitations prescribed for any suit, appeal or application when to be filed in a court. 60.2 Section 29 (2) cannot be pressed in service with regard to filing of suits, appeals and applications before the statutory authorities and tribunals provided in a special or local law. The Commissioner while hearing of the appeal under Section 69 of the 1959 Act is not entitled to condone the delay in filing appeal, since, provision of Section 5 shall not be attracted by strength of Section 29 (2) of the Act. 24. The Hon'ble Supreme Court ultimately allowed the appeal by concluding that Section 5 of the Limitation Act is not applicable as per the scheme of the 1959 Act. 25. In M.P. Steel Corporation's case, the appellant before the Hon'ble Supreme Court was challenging the order of Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The Commissioner of Customs (Appeals) dismissed the appeal on the ground of delay stating that the same was filed beyond the period of 60 days + 30 days provided for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Schedule to the Limitation Act prescribes the period of limitation only to proceedings in courts and not to any proceeding before a tribunal or quasi-judicial authority. Consequently Section 3 and 29 (2) of the Limitation Act will not apply to proceedings before the tribunal. This means that the Limitation Act will not apply to appeals or applications before the tribunals, unless expressly provided." 29. In L.S. Synthetics Ltd., case referred to supra, the Hon'ble Supreme Court had an occasion to examine the provisions of the Special Courts (Trial of offences Relating to Transactions in Securities) Act, 1992. A Three Member Bench inter alia held that the Limitation Act, 1963 is applicable only in relation to certain applications and not all applications, despite the fact that the words "other proceedings" were added in the long title of the Act in 1963, and that the provisions of the said Act are not applicable to the proceedings before bodies other than courts, such as a quasi judicial Tribunal or even an executive authority. At Para No.41 the Apex Court held that "a statute of limitation bars a remedy and not a right. Although a remedy is barred, a defence can be raised. In co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication to condone the delay was filed. As noted earlier, Section 35 provides for limited application of the provisions of the C.P.C., and no regulations have been framed formulating the procedure / applicability of provisions of C.P.C., under Order 22 etc., If the Appellate Tribunal's order dismissing the appeal as abated is to be accepted, the same would render Section 72 (1) (b) (ii) of the Act otiose. The very fact that continuation of appeal or filing of an appeal before the Appellate Tribunal in terms of Section 72 (1) and continuation of appeal or filing of appeal before the High Court under Section 72 (2) would indicate that the proceedings under the Act can be continued even after the death of a party / appellant and that the death would not automatically result in termination of the proceedings. 33. Further, in the present case, the legal heir of the deceased / appellant filed the application to record her as legal representative while the appeal is pending. The Appellate Tribunal, in such circumstances, in the considered opinion of this Court should have allowed the same and decided the matter on merits taking a liberal view rather than rejecting it on technicalities. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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