Mr. Dyani Antony Paul vs Union Of India
2021 Latest Caselaw 1943 Kant

                                    W.A. No.106 OF 2021
                                     & Connected Matters
                             1



 IN THE HIGH COURT OF KARNATAKA AT BENGALURU
       DATED THIS THE 04TH DAY OF MAY, 2021

                          PRESENT

THE HON'BLE MR. JUSTICE SATISH CHANDRA SHARMA
                           AND
    THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

    WRIT APPEAL NO.106 OF 2021 (GM-RES)
                   C/W
        WRIT APPEAL NO.38 OF 2021
        WRIT APPEAL NO.39 OF 2021
        WRIT APPEAL NO.55 OF 2021
        WRIT APPEAL NO.56 OF 2021
        WRIT APPEAL NO.52 OF 2021
        WRIT APPEAL NO.66 OF 2021
        WRIT APPEAL NO.68 OF 2021
        WRIT APPEAL NO.80 OF 2021
        WRIT APPEAL NO.97 OF 2021

IN WRIT APPEAL NO.106 OF 2021
BETWEEN:

1. MR. DYANI ANTONY PAUL
   S/O LATE JOSEPH PAUL
   AGED 33 YEARS

2. MR. LAWENCE PAUL
   S/O LATE JOSEPH PAUL
   AGED 42 YEARS

3. SMT. ANITA DORINE FERNANDES
   W/O LAWRENCE PAUL
   AGED 46 YEARS

  APPELLANTS NO.2 AND 3 ARE
  REP. BY THEIR GPA HOLDER
  MR. DYANI ANTONY PAUL
  S/O LATE JOSEPH PAUL
  AGED 33 YEARS
                                      W.A. No.106 OF 2021
                                      & Connected Matters
                          2



  ALL ARE NO. 1/77
  VAILANKANI COTTAGE
  PADAVINANGADY, KONCHADY
  MUGRODY ROAD
  MANGALORE-575008                     ... APPELLANTS

(BY SRI. MANMOHAN.P.N, ADVOCATE)

AND:

1. UNION OF INDIA
   DEPARTMENT OF DIRECTORATE OF
   ENFORCEMENT
   BENGALURU ZONAL OFFICE
   3RD FLOOR, 'B' BLOCK
   B.M.T.C SHANTHINAGAR, K.H. ROAD
   BENGALURU-560027

2. THE DEPUTY DIRECTOR
   DIRECTORATE OF ENFORCEMENT
   GOVERNMENT OF INDIA
   3RD FLOOR, 'B' BLOCK
   B.M.T.C SHANTHINAGAR, K.H. ROAD
   BENGALURU-560027                  ... RESPONDENTS

(BY SRI. M.B. NARGUNDA, ASG ALONG WITH
    SRI. MADHUKAR DESHPANDE, SENIOR CGC FOR R1 & R2)

     THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT, PRAYING TO SET ASIDE THE
ORDER DATED 11.12.2020 PASSED IN WP NO.38642/2016
PASSED BY THE LEARNED SINGLE JUDGE AND CONSEQUENTLY
ALLOW WP NO.38642/2016 AS PRAYED FOR.

                        *****

IN WRIT APPEAL NO.38 OF 2021 BETWEEN

1. SHRI. C. DEVARAJU AGED 63 YEARS S/O LATE CHANNEGOWDA ASSISTANT MANAGER HOPCOMS

2. SMT. AMMAIAH W/O C.DEVARAJU AGED 55 YEARS W.A. No.106 OF 2021 & Connected Matters

3. SRI. C. HEMANT S/O C. DEVARAJU AGED 26 YEARS APPELLANT NOS.1 TO 3 ARE RESIDENT OF NO.28, 4TH MAIN ROAD 4TH CROSS, 7TH BLOCK BANASHANKARI III STAGE BENGALURU

4. SHRI. YOGANARASIMHA SWAMY EDUCATIONAL TRUST BEVUR MANDYA VILLAGE CHANNAPATNA TALUK MANDYA DISTRICT REP. BY ITS PRESIDENT SRI. C. DEVARAJU ... APPELLANTS

(BY SRI. KIRAN S. JAVALI, ADVOCATE A/W SRI. CHANDRASHEKARA.K, ADVOCATE)

AND:

THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, 'B' BLOCK, BMTC-TTMC BUILDING K.H. ROAD, SHANTHINAGAR BANGALORE-560027 ... RESPONDENT

(BY SRI. M.B. NARGUND, ASG A/W SRI. MADHUKAR DESHPANDE, CGC)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN W.P. NO.48031/2017 DATED 11.12.2020 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION AND ETC.

***** IN WRIT APPEAL NO.39 OF 2021 BETWEEN

SHRI. V. BHASKAR W.A. No.106 OF 2021 & Connected Matters

S/O VENKATARAMANAPPA AGED ABOUT 49 YEARS SKYLINE GOLDEN RAYS APARTMENTS GAVIPURAM, GUTTAHALLI BEHIND RAMA KRISHNA ASHRAM BENGALURU-560 018 ... APPELLANT

(BY SRI. KIRAN S. JAVALI, ADVOCATE AND SRI. CHANDRASHEKAR.K, ADVOCATE-PH)

AND:

THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, B BLOCK, BMTC-TTMC BUILDIN K.H.ROAD, SHANTHINAGAR, BANGALORE-560 027 ... RESPONDENT

(BY SRI. M.B. NARAGUND, ASG A/W SRI. MADHUKAR DESHPANDE, SENIOR CGSC-PH; SRI. H. JAYAKARA SHETTY, CGC-PH)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NO.27744/2018 DATED 11.12.2020 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION.

***** IN WRIT APPEAL NO.55 OF 2021 BETWEEN

SHRI. M. JAYARAM AGE 65 YEARS S/O LATE H.MAYANNA GOWDA R/AT IRUBANAHALLI NAGAMANGALA TALUK MANDYA DISTRICT- ... APPELLANT

(BY SRI. KIRAN S. JAVALI, ADVOCATE AND SRI. CHANDRASHEKAR.K, ADVOCATE-PH)

AND:

1. REGISTRAR W.A. No.106 OF 2021 & Connected Matters

ADJUDICATING AUTHORITY PREVENTION OF MONEY LAUNDERING 4TH FLOOR, ROOM NO.26 JEEVAN DEEP BUILDING PARLIAMENT STREET NEW DELHI-110001

2. THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, 'B' BLOCK, BMTC-TTMC BUILDING K.H.ROAD, SHANTHINAGAR BANGALORE-560027 ... RESPONDENTS

(BY SRI. M.B. NARAGUND, ASG A/W SRI. MADHUKAR DESHPANDE, SENIOR CGSC FOR C/R2-PH)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.33740/2016 DATED 11.12.2020 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION AND ETC.

***** IN WRIT APPEAL NO.56 OF 2021 BETWEEN

1. SHRI. R.K. NAYAK AGED 59 YEARS S/O LATE KASNAPPA NAYAK

2. SMT. JAYASHREE NAYAK W/O SHRI. R.K. NAYAK AGED ABOUT 50 YEARS BOTH ARE R/AT NO.64 "BASAVA NILAYA"

GACHCHINAKATTI COLONY VIJAYAPURA-586103 KARNATAKA ... APPELLANTS

(BY SRI. KIRAN S. JAVALI, ADVOCATE A/W SRI. CHANDRASHEKARA.K, ADVOCATE)

AND:

1. REGISTRAR W.A. No.106 OF 2021 & Connected Matters

ADJUDICATING AUTHORITY PREVENTION OF MONEY LAUNDERING 4TH FLOOR, ROOM NO.26 JEEVAN DEEP BUILDING PARLIAMENT STREET NEW DELHI-110001

2. THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, 'B' BLOCK BMTC-TTMC BUILDING K.H. ROAD, SHANTHINAGAR BANGALORE-560027 ... RESPONDENTS

(BY SRI. M.B.NARGUND, ASG A/W SRI. MADHUKAR DESHPANDE, ADVOCATE FOR C/R2; R1-ABSENT)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NOS.23176/2016 AND 23177/2016 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION.

*****

IN WRIT APPEAL NO.52 OF 2021 BETWEEN

1. C. MAHADESH @ AVVA MAHADESH AGED ABOUT 57 YEARS S/O CHIKKAPUTTAIAH HOUSE NO 2550/5 MAHADESHWARALAYA, III CROSS KALIDASA ROAD, V.V.MOHALLA MYSORE-570002 PRESENTLY IN JUDICIAL CUSTODY

2. C. MANJU AGED ABOUT 53 YEARS S/O CHIKKAPUTTAIAH HOUSE NO 2554/2, 3RD CROSS VONTIKOPPAL, KALIDASA ROAD MYSORE-570002 PRESENTLY IN JUDICIAL CUSTODY W.A. No.106 OF 2021 & Connected Matters

3. BHAGYA W/O C. MAHADESH @ AVVAMAHADESH AGED ABOUT 49 YEARS HOUSE NO 2550/5 MAHADESHWARAPALYA, III CROSS KALAIDAS ROAD, V.V.MOHALLA MYSORE 570002

4. SMT. S. NALINA MANJU AGED ABOUT 41 YEARS W/O C. MANJU HOUSE NO 2554/2, 3RD CROSS VONTIKOPPAL, KALIDASA ROAD MYSORE-570002

5. C. KAPPANAIAH AGED ABOUT 65 YEARS S/O CHIKKAPUTTAIAH HOUSE NO.108, 1ST STAGE 5TH CROSS, GOKULAM V.V.MOHALLA MYSORE-570002

6. SHIVAMMA (DEAD) AGED 78 YEARS W/O CHIKKAPUTTAIAH HOUSE NO.2550/5 MAHADESHWARAPALYA, II CROSS KALIDASA ROAD, V.V.MOHALLA MYSORE-570002 ... APPELLANTS

(BY SRI. KIRAN S. JAVALI, ADVOCATE AND SRI. CHANDRASHEKAR.K, ADVOCATE-PH))

AND:

THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, 'B' BLOCK BMTC-TTMC BUIDLING K.H.ROAD, SHANTHINAGAR BANGALORE-560027 ... RESPONDENT

(BY SRI. M.B. NARAGUND, ASG A/W SRI. MADHUKAR DESHPANDE, SENIOR CGSC-PH) W.A. No.106 OF 2021 & Connected Matters

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NOS.46318-46323/2017 DATED 11.12.2020 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION.

*****

IN WRIT APPEAL NO.66 OF 2021 BETWEEN:

SMT. G. NIRMALA W/O SHRI. S. THIMMARAJU AGED 60 YEARS RESIDING AT NO.143/96 "JYOTHI NIWAS" 3RD CROSS, BANAGIRINAGARA BANASHANKARI III STAGE BENGALURU-560085 ... APPELLANT

(BY SRI. KIRAN S. JAVALI, ADVOCATE FOR SRI. CHANDRASHEKARA.K., ADVOCATE)

AND:

THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, 'B' BLOCK BMTC-TTMC BUILDING K.H. ROAD, SHANTHINAGAR BANGALORE-560027 ... RESPONDENT

(BY SRI.M.B. NARAGUND, ASG FOR SRI. MADHUKAR DESHPANDE, SENIOR CGC)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF HE KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.36309/2017 DATED 11.12.2020 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION AND ETC.

*****

IN WRIT APPEAL NO.68 OF 2021 BETWEEN

M/S JSW STEEL LIMITED W.A. No.106 OF 2021 & Connected Matters

REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. MANI C. MANUEL GENERAL MANAGER BRANCH OFFICE AT 6TH FLOOR EAST WING, RAHEJA TOWERS M G ROAD, BANGALORE-560001 REGISTERED OFFICE:

JSW CENTRE BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI-400051

WORKS OFFICE AT:

VIJAYANAGAR WORKS P.O. VIDYANAGAR, TORANAGALLU DIST. BALLARI-583275 KARNATAKA ... APPELLANT

(BY SRI. KIRAN S. JAVALI, ADVOCATE FOR SRI. CHANDRASHEKARA.K, ADVOCATE)

AND:

1. DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT (FOREIGN EXCHANGE MANAGEMENT ACT & PREVENTION OF MONEY LAUNDERING ACT) DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA, 3RD FLOOR B BLOCK BMTC, SHANTINAGAR TTMC KH ROAD, BANGALORE-560027

2. VIJAYA BANK JVSL BRANCH TORANAGALLU DIST. BALLARI REP. BY ITS BRANCH MANAGER ... RESPONDENTS

(BY SRI.M.B. NARGUND, ASG A/W SRI. MADHUKAR DESHPANDE, SENIOR CGC FOR R1)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.19313/2016 DATED 11.12.2020 AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION AND ETC.

***** W.A. No.106 OF 2021 & Connected Matters

IN WRIT APPEAL NO.80 OF 2021 BETWEEN:

SHRI. S. THIMMARAJU S/O MARIDASEGOWDA AGED 64 YEARS R/AT NO. 143/96 "JYOTHI NIWAS", 3RD CROSS BANAGIRINAGARA BANASHANKAR II STAGE BENGALURU 560 085 ... APPELLANT

(BY SRI. KIRAN S. JAVALI, ADVOCATE A/W SRI. CHANDRASHEKAR.K., ADVOCATE)

AND:

THE DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT BANGALORE ZONAL OFFICE 3RD FLOOR, B BLOCK BMTC TTMC BUILDING K.H. ROAD, SHANTHINAGAR BANGALORE-560 027 ... RESPONDENT

(BY SRI.M.B. NARGUND, ASG A/W SRI. MADHUKAR DESHPANDER, SENIOR CGC)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961 PRAYING TO SET ASIDE THE ORDER DATED 11.12.2020 IN W.P.NO.36310/2017 PASSED BY THE HON'BLE SINGLE JUDGE AND GRANT THE PRAYER AS PRAYED IN THE WRIT PETITION AND ETC.

*****

IN WRIT APPEAL NO.97 OF 2021 BETWEEN:

M/S JSW STEEL LIMITED REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. MANI C. MANUEL GENERAL MANAGER BRANCH OFFICE AT 6TH FLOOR EAST WING, RAHEJA TOWERS M.G. ROAD, BENGALURU-560001 W.A. No.106 OF 2021 & Connected Matters

REGISTERED OFFICE:

JSW CENTRE, BANDRA KURLA COMPLEX EAST MUMBAI - 400051

WORKS OFFICE AT:

VIJAYANAGAR WORKS P.O. VIDYANAGAR, TORANGAGALLU DISTRICT BALLARI - 583275 KARNATAKA ... APPELLANT

(BY SRI. KIRAN S. JAVALI, ADVOCATE AND SRI. CHANDRASHEKAR.K, ADVOCATE-PH)

AND:

1. DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT [FOREIGN EXCHANGE MANAGEMENT ACT & PREVENTION OF MONEY LAUNDERING ACT] DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, 3RD FLOOR "B" BLOCK BMTC, SHANTHI NAGAR TTMC K.H. ROAD, BANGALORE - 560027

2. REGISTRAR ADJUDICATING AUTHORITY PREVENTION OF MONEY LAUNDERING 4TH FLOOR, ROOM NO.20 JEEVAN DEEP BUILDING PARLIAMENT STREET NEW DELHI-110001 ... RESPONDENTS

(BY SRI.M.B. NARAGUND, ASG A/W SRI. MADHUKAR DESHPANDE, SENIOR CGSC FOR C/R1-PH; SRI. HARSHA P. BANAD, ADVOCATE FOR R2)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNTAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NO.24444/2015 DATED 11.12.2020 AND GRANT THE PAYER AS PRAYED IN THE WRIT PETITION AND ETC.

*****

THESE APPEALS COMING ON FOR ORDERS AND HAVING BEEN RESERVED FOR ORDERS ON 26.03.2021, THIS DAY, SURAJ GOVINDARAJ J., PRONOUNCED THE FOLLOWING:

W.A. No.106 OF 2021 & Connected Matters

JUDGMENT

1. In the above Writ Appeals the order passed by

the learned Single Judge on 11th December 2020

in W.P.No.38642/2016 and other connected

matters have been challenged.

1.1. The appellants in W.A.No.106/2021 are the

petitioners in W.P.No.38642/2016,

1.2. The appellants in W.A.No.38/2021 are the

petitioners in W.P.No.48031/2017,

1.3. The appellants in W.A.No.39/2021 are the

petitioners in W.P.No.27744/2018,

1.4. The appellants in W.A.No.55/2021 are the

petitioners in W.P.No.33740/2016,

1.5. The appellants in W.A.No.56/2021 are the

petitioners in W.P.No.23176/2016,

1.6. The appellants in W.A.No.52/2021 are the

petitioners in W.P.No.46318/2017,

1.7. The appellants in W.A.No.66/2021 are the

petitioners in W.P.No.36309/2017, W.A. No.106 OF 2021 & Connected Matters

1.8. The appellants in W.A.No.68/2021 are the

petitioners in W.P.No.19313/2016,

1.9. The appellants in W.A.No.80/2021 are the

petitioners in W.P.No.36310/2017,

1.10. The appellants in W.A.No.97/2021 are the

petitioners in W.P.No.24444/2015 and

2. The learned Single Judge vide his detailed order

dated 11.12.2020 has dismissed the aforesaid

Writ Petitions and has held that Sub-section (4)

of Section 8 of the Prevention of Money-

Laundering Act, 2002 (for short, 'PMLA') is

intravires the Constitution of India for the

purpose of initiating proceedings under Section 3

of the PMLA.

3. As against the very same judgment, there were

certain other Writ Appeals filed in W.A. No.106 OF 2021 & Connected Matters

3.1. W.A.No.107/2021 challenging the very

same judgment passed in

W.P.No.28027/2018 and

3.2. W.A.No.108/2021 passed in

W.P.No.35991/2018.

4. A co-ordinate Bench of this Court while dealing

with the said two appeals, taking into

consideration that the appellants in those

matters have already approached the Appellate

Tribunal, disposed of the Writ Appeals reserving

liberty to the appellants therein to press for

interim/protective orders before the Appellate

Tribunal and further directed the respondents

not to take any precipitative action, pending

such a decision by the Appellate Tribunal.

5. In view of the aforesaid order passed in

W.A.No.107/2021 by the Co-Ordinate Bench of

this Court, the Co-ordinate Bench of this Court

having already refused to interfere in the matter W.A. No.106 OF 2021 & Connected Matters

and having permitted the appellants therein to

agitate all their contentions before the Appellate

Tribunal, we are of the considered view that the

same would be applicable to the present

proceedings. Hence, we deem it appropriate to

dispose of the aforesaid appeals by relegating

the appellants to the Appellate Tribunal

reserving liberty to press for interim/protective

orders pending disposal of the appeal by the

Appellate Tribunal.

6. Pending disposal of the appeal to be filed by the

appellants and consideration of any interlocutory

application to be filed by the appellants, we

restrain the respondents from taking any

precipitative action against the appellants. If no

appeal is filed by the appellants before the

Appellate Tribunal within a period of 30 days

from the date of receipt of certified copy of this

order, the above interim protection would stand

vacated automatically.

W.A. No.106 OF 2021 & Connected Matters

7. Accordingly, Writ Appeals are disposed of.

Sd/-

JUDGE

Sd/-

JUDGE

Prs*