Telangana High Court
Sri Krishna Ventures Pvt, Ltd And ... vs Directorate Of Enforcement And 5 ... on 29 October, 2021
Bench: B.Vijaysen Reddy
1
THE HON'BLE SRI JUSTICE B.VIJAYSEN REDDY
WRIT PETITIONS NO. 26535 AND 26543 OF 2021
COMMON ORDER:
Heard learned Senior Counsel Sri Dammalapati
Srinivas on behalf of learned counsel for the petitioners and
Sri B. Narsimha Sharma, learned Standing Counsel for
Enforcement Directorate (ED).
Learned Senior Counsel submits that as an interim
measure, a sum of Rs. 2 crores may be released subject to the
petitioners furnishing bank guarantee. The learned Standing
Counsel for ED submits that impugned proceedings directing
freezing of bank accounts of the petitioners are dated 11.10.2021.
The 1st respondent filed an Original Application under Section
17(4) of the Prevention of Money Laundering Act, 2002 before the
Adjudicating Authority for continuation of freezing orders wherein
notices will be issued to the petitioners. The learned Standing
Counsel submits that grievance, if any of the petitioners can be
addressed in the said proceedings. However, learned Senior
Counsel for the petitioners submits that there is urgency in the
matter as salaries and statutory benefits of the employees have not
been paid and the employees would suffer hardship. He relies on
judgment of the Delhi High Court dated 27.10.2021 in W.P(C).No.
5713 of 2020 and CM Appeals No. 20656, 31384 of 2020 and 4153
of 2021. The Delhi High Court in paragraph 110(v) granted the
following interim relief:
" In the interregnum, the specific amounts as referred to in
the order dated 28th December 2020 of the Adjudicating Authority
shall remain frozen. However, the petitioners are permitted to
furnish either bank guarantees, or securities to the satisfaction of
the ED, subject to which the said accounts may be directed to be de-
frozen by the ED, on a case-to-case basis."
It is submitted that the proceedings before the Delhi High Court
are issued under the provisions of the PMLA. The learned Senior
Counsel further submits that in the proceedings arising out of the
Foreign Exchange Management Act, 1999 (FEMA), freezing order
was passed by the ED and Karnataka High Court passed interim
order dated 05.11.2018 in W.P. No. 47822 of 2018, directing
release of amounts towards payment of salary, recurring expenses
and other statutory dues, subject to the condition that the
petitioners therein should provide bank guarantee for the said
amount to the Directorate of Enforcement.
In the circumstances, this Court is inclined to grant
interim order to the extent of payment of salary to the employees of
the petitioners. There shall therefore, be a direction to the
respondents to permit the petitioners to operate the bank accounts
to the extent of Rs.2 crores, subject to their furnishing bank
guarantee for the said amount. The petitioners are permitted to
operate the bank accounts with respect to the amounts deposited
on or after 12.10.2021, forthwith. Both the learned counsel agree
that in terms of this interim order, the Writ Petitions may be
disposed of giving liberty to the petitioners to approach the
Adjudicating Authority, in accordance with law.
Both the Writ Petitions are accordingly, disposed of
giving liberty to the petitioners and the respondents to raise all
legal contentions before the Adjudicating Authority. No costs.
Consequently, miscellaneous Applications, if any shall
stand closed.
_________________________
B.VIJAYSEN REDDY,J
29th October 2021
ksld
