As an alternative remedy that is as Effective and Available before the Appellate Tribunal, Delhi High Court Disposes the Writ Petition
As an alternative remedy that is as effective and available before the Appellate Tribunal, the Delhi High Court Disposed the Writ Petition.
Background
The facts of the case reveal that the appellant Directorate of Enforcement is investigating a number of Non-Banking Financial Companies (NBFCs) and Fintech Companies under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
In exercise of the powers conferred under the PMLA, the appellant seized a certain amount under Section 37A(1) of Foreign Exchange Management Act, 1999 (FEMA).
The company preferred a Writ Petition before the High Court of Telangana praying for quashing of the impugned Seizure Orders and directing release of the properties which have been seized, and the Single Judge vide order passed in the said writ petition directed release of certain amount.
Arguments
Senior Advocate Ganesh, appearing for respondent, vehemently argued that pursuant to the order the appeal had been withdrawn by respondent and, therefore, the matter has to be heard by the Single Judge.
ASG appearing for the appellant argued that once the Tribunal has become functional, the order passed will not come in the way of the parties as an appeal was already pending on the date when the order was passed keeping in view the equally efficacious alternative remedy available to respondent.
Decision
The division bench of The Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad observed that there is an equally efficacious remedy available under Section 26 of the PMLA and the High Court is an Appellate Authority above the Appellate Authority by virtue of Section 42 of the PMLA.
The bench held that as the Appellate Authority is very much functional, the matter deserves to be heard by the Appellate Authority only.
The court said that on the date the LPA order was passed and also on the date the subsequent order was passed by the Single Judge the appeal was very much pending and, therefore, in case it has been withdrawn, the same shall be restored to its original number and the Tribunal is requested to decide the same on merits at an early date.
The court requested the Tribunal to decide the appeal at an early date.
Case title: Directorate of Enforcement v/s PC Financial Services Private Limited & Anr.
Citation: 2022/DHC/004517
