M/S. Adinath Port & Logistics Pvt. Ltd vs Directorate Of Enforcement & Anr
2023 Latest Caselaw 7825 Cal

Calcutta High Court (Appellete Side)

M/S. Adinath Port & Logistics Pvt. Ltd vs Directorate Of Enforcement & Anr on 27 December, 2023

   D/L
Item No. 20
27.12.2023

KOLE/PB

MAT 2556 of 2023 With IA CAN 1 of 2023

M/s. Adinath Port & Logistics Pvt. Ltd.

-Vs.-

Directorate of Enforcement & Anr.

Mr. Kishore Datta, Sr. Adv., Mr. Ankur Chawla, Mr. A. S. Khurana, Mr. M. Mukherjee, Mr. T. Sharma, Mr. S. Tondon, Mr. M. Khanna, Mr. K. Lal Mukherjee, Mr. S. Bhattacharjee ... for the appellant.

Mr. Arijit Chakrabarti, Mr. D. Sharma, ... for the Enforcement Directorate.

In this intra-court appeal, the moot question to be

decided would be whether in the absence of an adjudicating

authority as provided for under Section 6(2) of the Prevention

of Money Laundering Act, 2002 (in short the 'PMLA Act') a

single member could issue the show-cause notice under Section

8(1) of the PMLA Act. Whether such show-cause notice was

without jurisdiction or not.

Elaborate arguments have been advanced by both the

parties. While Mr. Datta, learned Senior Advocate, for the

appellant submits that in the decision of the Hon'ble Apex Court

and the Delhi High Court referred to by the authorities and also

by the learned Single Judge, there was no vacancy in the office of

the Chairperson of the adjudicating authority and the Single

Bench was functioning through the Appellate Authority,

whereas, in the case in hand, there was no existence of any

adjudicating authority at all, in the absence of the Chairperson.

Only a single member was available. To counter such argument,

Mr. Chakrabarti has placed reliance on two decisions, one is in

the case of R.P. Infosystems Ltd. & Anr.-vs.-Adjudication

Authority & Anr. reported in AIR 2023 Cal 326 and the

other one is in the case of Alaknanda Realtors Pvt. Ltd. &

Ors.-vs.-Deputy Director, Directorate of Enforcement,

reported in (2022) SCC Online Del 5014. Relevant

paragraphs of the said two judgments have been placed in

details to impress upon us that the issue which has fallen for

decision in this mandamus appeal, has already been decided.

It appears to this Bench that a further consideration and

deliberation is required. A little variation in the facts, may make

a difference. Mr. Chakrabarti's apprehension is appreciated as

the statute provides a time limit within which the proceedings

have to be completed.

Mr. Chakrabarti submits that the authorities have not yet

taken any steps in respect of the provisional attachment. We

trust that no further steps shall be taken in respect of the said

show-cause notice till 15th January, 2024.

Let this matter be listed before the Hon'ble Regular

Bench, immediately after the reopening of the Christmas

Vacation.

Urgent photostat certified copy of this order be supplied

to the parties, if applied for, as early as possible.

(Apurba Sinha Ray, J.) (Shampa Sarkar, J.)