Karnataka High Court
Mr. Dyani Antony Paul vs Union Of India on 4 May, 2021
Bench: Satish Chandra Sharma, Suraj Govindaraj
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
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
4
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
5
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
6
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
7
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
8
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
9
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
10
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
11
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
12
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 13 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 14 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 15 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 16
7. Accordingly, Writ Appeals are disposed of.
Sd/-
JUDGE Sd/-
JUDGE Prs*