PMLA proceedings stayed where the foundational FIR appeared abusive and mens rea offences were attributed to a juristic person.

Ad interim stay was granted against PMLA enforcement proceedings where the foundational FIR and related complaint, based on alleged IPC offences, had already been quashed in connected proceedings. The Court treated the continuation of PMLA action as prima facie abusive because the copyright society's statutory framework under the Copyright Act and Copyright Rules functioned as a complete code governing such societies, and the allegations rested on a solitary complaint against former office bearers. It further noted that offences requiring mens rea cannot ordinarily be attributed to a juristic person. On that basis, further proceedings against the petitioner were stayed.

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Issues: Whether ad interim stay of the enforcement proceedings under the Prevention of Money Laundering Act, 2002 was warranted on the ground that the foundational FIR and related complaint disclosed a prima facie abuse of process and that the alleged offences required mens rea.

Analysis: The Petitioner was a copyright society registered under Section 33 of the Copyright Act, 1957, and the statutory scheme under Chapter VII of that Act and Chapter XI of the Copyright Rules, 2013 showed a complete code governing such societies. The proceedings were founded on an FIR alleging offences under Sections 420, 471 and 120B of the Indian Penal Code. The complaint basis had already been quashed in related proceedings, and the allegations rested on a solitary complaint against former office bearers. The Court treated the initiation of PMLA proceedings on that foundation as, prima facie, abusive. It also noted that offences requiring mens rea cannot ordinarily be attributed to a juristic person.

Conclusion: Ad interim stay of all further proceedings against the Petitioner was granted.

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