Karnataka High Court
Sri S Ujjanappa vs The Directorate Of Enforcement on 14 February, 2024
Author: K.Natarajan
Bench: K.Natarajan
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NC: 2024:KHC:6336
CRL.P No. 12177 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 14TH DAY OF FEBRUARY, 2024
BEFORE
THE HON'BLE MR JUSTICE K.NATARAJAN
CRIMINAL PETITION NO. 12177 OF 2023
BETWEEN:
1. SRI. S. UJJANAPPA
S/O LATE BASAPPA,
AGED ABOUT 63 YEARS,
OFFICIAL QUARTERS NO.1,
FOREST CAMPUS,OPP: K.C.PARK,
DHARWAD, KARNATAKA - 580 008.
(NOW RETIRED)
R/O HOUSE NO.1826/5,
'MALLESHWARA', LIC COLONY,
ADJACENT TO THIMMAREDDY COLLEGE,
DAVANGERE - 577 004.
(REPRESENTED BY HIS COUNSEL
RAHUL R. GORAWAR)
...PETITIONER
Digitally signed by
BHAVANI BAI G (BY SRI. RAHUL G. GORAWAR, ADVOCATE)
Location: High
Court of Karnataka AND:
1. THE DIRECTORATE OF ENFORCEMENT
REPRESENTED BY ITS ASST. DIRECTOR,
GOVT. OF INDIA, MINISTRY OF FINANCE,
DEPT. OF REVENUE, 3RD FLOOR, B.BLOCK,
BMTC, SHANTHINAGAR,
K.H.ROAD, BENGALURU - 560 027.
...RESPONDENT
(BY SRI. MADHUKAR DESHPANDE, ADVOCATE)
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NC: 2024:KHC:6336
CRL.P No. 12177 of 2023
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C. PRAYING TO QUASH THE COMPLAINT AT
ANNEXURE-C AND FURTHER CRIMINAL INVESTIGATION IN
SPL.C.NO.78/2019 PENDING ON THE FILE OF III ADDL.
DISTRICT AND SESSIONS JUDGE, MANGALURU, D.K.
DISTRICT.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
This petition is filed by the petitioner-accused under
Section 482 of Cr.P.C. for quashing the criminal proceedings
initiated by the Directorate of Enforcement (ED) in ECIR
No.05/BGZO/2013 in Spl.C.No.78/2019 for the offence
punishable under Section 45(1) read with Sections 3, 4 and
8(5) of Prevention of Money Laundering Act, 2002 (for short
'PML Act') pending on the file of III Additional District and
Sessions Judge, D.K. Mangaluru.
2. Heard the arguments of learned counsel for the
petitioner and learned Special counsel for the respondent-ED.
3. The case of the petitioner is that the petitioner was
charge sheeted by the Lokayuktha Police for the offence
punishable under Sections 13(1)(e) read with 13(2) of
NC: 2024:KHC:6336
Prevention of Corruption Act, 1988 (for short 'P.C. Act') and a
Spl.Case(LOK)No.5/2015 was took up and trial was concluded
by acquitting the petitioner. The complaint came to be filed by
the Enforcement Directorate based upon the predicate offence
registered against the petitioner. Once the predicate offence is
ended in acquittal, the ED proceedings will not survive. In
support of his case, learned counsel for the petitioner has relied
upon the judgment passed by this Court in W.P.No.288/2022
dated 22.04.2022 and the judgment of the Hon'ble Supreme
Court in the case of Vijay Madan Lal Choudhary and others
vs. Union of India and other in Spl. Leave Petition
(Criminal) No.4634/2014. Hence, prayed for quashing the
criminal proceedings.
4. Learned Special counsel for the respondent submits
that in case the Lokayuktha files any appeal before the High
Court, if they succeeds in their appeal, then the ED is permitted
to revive their case.
5. Submission of learned counsel for respondent is
placed on record.
NC: 2024:KHC:6336
6. Considering the facts and circumstances of the
case, once the predicate offence has been ended in acquittal,
based upon the predicate offence, the proceedings initiated by
ED will not survive. In view of the judgment of the Hon'ble
Supreme Court in the case of Vijay Madan Lal Choudhary
stated supra, the Hon'ble Supreme Court has taken the view
that once the predicate offence is ended in acquittal or
discharged the accused, the ED proceedings will not be
sustainable. This Court also taken the similar view in
W.P.No.288/2022. Considering the same, I am of the view,
once the petitioner acquitted by the predicate offence by the
Special Court Lokayuktha, Davanagere in Spl.Lok.Case
No.5/2015 dated 31.10.2023, the ED proceedings will not be
sustainable under the law.
7. Accordingly, the petition is allowed.
The proceedings initiated by the ED in ECIR
No.05/BGZO/2013 in Spl.C.No.78/2019, pending on the file of
III Additional District and Sessions Judge, D.K. Mangaluru is
hereby quashed.
NC: 2024:KHC:6336
8. However, the liberty granted to the ED to revive the
proceedings against the petitioner, if the Lokayuktha succeeds
in the appeal before the High Court against the petitioner in the
predicate offence.
Sd/-
JUDGE
GBB
CT:SK
