PMLA overriding clause prevails over SARFAESI, so attached properties could not be released during pending trial.

PMLA prevails over SARFAESI where their provisions are inconsistent because the money-laundering statute contains an overriding clause. Section 26E of SARFAESI gives priority to secured creditors, but that priority cannot defeat the mandate of the special statute governing money laundering. As the trial arising from the FIR was still pending, release of the attached properties was not justified. The orders releasing the properties were therefore unsustainable, the appeals succeeded, and the parties were left to pursue their remedies after final adjudication by the trial court.

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Issues: Whether the Prevention of Money Laundering Act, 2002 prevails over the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and whether the properties attached under the money-laundering proceedings could be released during the pendency of the trial.

Analysis: The two enactments serve different purposes, but the Prevention of Money Laundering Act, 2002 contains an overriding provision giving it effect notwithstanding anything inconsistent in other laws. Section 26E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 confers priority on secured creditors, but that priority cannot defeat the overriding mandate of the special statute dealing with money laundering. Since the trial arising from the FIR was still pending, the release of the attached properties was not justified.

Conclusion: The Prevention of Money Laundering Act, 2002 prevails over the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and the order releasing the properties from attachment was unsustainable.

Final Conclusion: The appeals succeeded, the impugned orders were set aside, and the parties were left to work out their remedies after final adjudication by the trial court.

Ratio Decidendi: Where a special statute contains an overriding clause, its mandate prevails over inconsistent provisions in another law, and attached properties cannot be released contrary to that mandate while the prosecution is pending.

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