Court Denies Stay on Money Laundering Summons, Emphasizes No Arrest Post-Cognizance

The court denied the application for a stay on the operations of a summons issued under the Prevention of Money Laundering Act, 2002. The court clarified that petitioner No.2 must appear at the trial court to furnish bail bond/surety bond without being taken into custody and instructed him to respond to the summons from the Directorate of Enforcement. The court emphasized that arrest under Section 19 of the Act was not applicable at the post cognizance stage. Consequently, the court dismissed the application for a stay on the summons' operation.

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Issues: Application for stay of operations of summons under Prevention of Money Laundering Act, 2002.

The judgment involves an application filed by the petitioners seeking a stay on the operations of a summons issued under Section 15(2) of the Prevention of Money Laundering Act, 2002. The petitioners argued that the summons was issued to petitioner No.2 for recording his statement despite a complaint being filed against him before the trial court and cognizance being taken. The court heard the submissions made by the learned senior counsel for the petitioners and referred to a previous order clarifying the legal position. The court stated that upon the appearance of petitioner No.2 at the post cognizance stage, the trial court would be required to accept the bail bond/surety bond under Section 88 of the Code of Criminal Procedure without taking the petitioner into custody and to pass appropriate orders on the same day. The court directed petitioner No.2 to appear before the trial court to avail his right to furnish bail bond/surety bond for further appearance. Additionally, the court instructed petitioner No.2 to appear in response to the summons issued by the Directorate of Enforcement, clarifying that the question of arrest under Section 19 of the Act does not arise at the post cognizance stage. The court ultimately declined the prayer for a stay of the summons' operation and disposed of the application accordingly, with a copy of the order to be provided dasti, attested under the signatures of the Bench Secretary.

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