Writ Petition No.10854 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 01.11.2022
Coram
THE HONOURABLE MR. JUSTICE P.N.PRAKASH
and
THE HONOURABLE MR. JUSTICE RMT. TEEKAA RAMAN
Writ Petition No.10854 of 2020
and
W.M.P.No.13179 of 2020
S.Jagathrakshakan
S/o.Swamikannu Gounder ... Petitioner
Vs.
The Deputy Director,
Directorate of Enforcement,
2nd and 3rd Floor,
Murugesa Naicker Complex,
84, Greams Road,
Thousand Lights, Chennai - 600 006. ... Respondent
Writ Petition filed under Article 226 of the Constitution of India
seeking issuance of a Writ of Certiorari calling for the records relating to the
impugned order passed by the respondent in his proceedings in
ECIR/05/CEZO-II/2019 dated 12.06.2020 initiated by the respondent and
quash the same as illegal, without jurisdiction and arbitrary.
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Writ Petition No.10854 of 2020
For Petitioner : Mr.C.Manishankar, Senior Counsel
for Mr.N.Senthil Kumar
For Respondent : Mr.R.Sankaranarayanan
Additional Solicitor General
for Mr.Rajinish Pathiyil,
Special Public Prosecutor [ED]
*****
ORDER
[Made by P.N.PRAKASH, J.]
Seeking to quash the order passed by the respondent in his
proceedings in ECIR/05/CEZO-II/2019 dated 12.06.2020, the present
petition has been filed.
2. The minimum facts that are required for deciding this quash
petition are as under:
(i) On a complaint given by one Quentin Dawson as Power of Attorney of
George Joseph Chambers, the Central Crime Branch registered a case in
Crime Nos.304 and 305 of 2007 against the petitioner and others for the
offences u/s.120(B), 420, 465, 467 and 471 IPC.
(ii)After completing investigation, the Central Crime Branch filed a closure
report in Crime Nos.304 and 305 of 2007 on the ground of mistake of
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fact. The closure report was also accepted by the learned Judicial
Magistrate I, Poonamallee, on 23.12.2009. The CBCID, Chennai, filed an
application in Crime Nos.304 and 305 of 2007 for further investigation,
which came to be dismissed by the learned Judicial Magistrate I,
Chengalpattu, on 26.02.2014.
(iii)Challenging the order, the CBCID approached the Additional District
and Sessions Court, Chengalpattu, in Crl.R.C.Nos.4 and 5 of 2014, in
which, by order dated 11.08.2016, the order of the learned Judicial
Magistrate I, Chengalpattu, was set aside and the CBCID was allowed to
proceed with the further investigation. Accordingly, the cases in Crime
Nos.304 and 305 of 2007 were transferred from the file of Central Crime
Branch to CBCID and re-numbered as Crime Nos.2 and 3 of 2016.
(iv)The petitioner herein filed quash petitions in Crl.O.P.Nos.12985 and
12986 of 2020 before this Court for quashing the First Information
Reports in Crime Nos.2 and 3 of 2016. While so, since the First
Information Reports disclosed commission of a scheduled offence under
the Prevention of Money Laundering Act, the Enforcement Directorate
registered a case in ECIR/05/CEZO-II/2019 and issued summons dated
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12.06.2022 to the petitioner u/s.50 of the Prevention of Money
Laundering Act for his appearance, challenging which, the petitioner filed
the present writ petition.
3. While so, when the matter was taken up for hearing, both sides
represented that this Court has allowed Crl.O.P.Nos.12985 and 12986 of
2020 on 23.09.2022 quashing the two First Information Reports in CBCID
Crime Nos.2 and 3 of 2016.
4. In the light of the law laid down by the Supreme Court in Vijay
Madanlal Choudhary and others v. Union of India and others 1, the
learned counsel for the petitioner prayed for quashment of the proceedings
before the Enforcement Directorate.
5. It may be apposite to extract paragraph No.467(d) from the
judgment of the Supreme Court in Vijay Madanlal's case [supra]:
467 (d) The offence under Section 3 of the 2002 Act is dependent on illegal gain of property as a result of criminal activity relating to a scheduled offence. It is concerning the process or activity 1 2022 SCC OnLine SC 929
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connected with such property, which constitutes the offence of money-laundering. The Authorities under the 2002 Act cannot prosecute any person on notional basis or on the assumption that a scheduled offence has been committed, unless it is so registered with the jurisdictional police and/or pending enquiry/trial including by way of criminal complaint before the competent forum. If the person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the Court of competent jurisdiction, there can be no offence of money-laundering against him or any one claiming such property being the property linked to stated scheduled offence through him."
(emphasis supplied)
In the light of the above, this Writ Petition is allowed and impugned
order passed by the respondent in his proceedings in ECIR/05/CEZO-
II/2019 dated 12.06.2020, is quashed. No costs. Consequently, connected
miscellaneous petition is closed.
[PNP, J.] [TKR, J.]
01.11.2022
Index: Yes/No
gm
To
1.The Deputy Director,
Directorate of Enforcement,
2nd and 3rd Floor, Murugesa Naicker Complex, 84, Greams Road, Thousand LIghts, Chennai - 600 006.
2.The Special Public Prosecutor [ED], High Court, Madras.
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P.N.PRAKASH, J.
and RMT. TEEKAA RAMAN, J.
gm
Writ Petition No.10854 of 2020
01.11.2022
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