Court equates closed proceedings to discharge, petitioner benefits from Supreme Court findings. Enforcement Directorate's summons quashed.

The court held that the closure of proceedings upon acceptance of the 'B' report is akin to a discharge, entitling the petitioner to benefit from the Supreme Court's findings. Consequently, the court quashed the summons issued by the Enforcement Directorate. The Criminal Petition was allowed, and the summons issued to the petitioner was quashed.

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Issues Involved:
1. Legitimacy of Enforcement Directorate's summons post-closure of proceedings.
2. Interpretation of "closure of proceedings" under the context of a 'B' report.
3. Applicability of Supreme Court's judgment in VIJAY MADANLAL CHOUDHARY & OTHERS VS UNION OF INDIA & OTHERS.

Summary:

Legitimacy of Enforcement Directorate's Summons Post-Closure of Proceedings:
The petitioner challenged the summons issued by the Enforcement Directorate on 02.02.2023, arguing that the closure of proceedings in the predicate offence (Crime No.64/2015) negates the Directorate's right to initiate further proceedings. The petitioner contended that the acceptance of the 'B' report by the concerned court, which closed the proceedings, should prevent the Directorate from issuing summons.

Interpretation of "Closure of Proceedings" Under the Context of a 'B' Report:
The respondent argued that the acceptance of a 'B' report does not equate to an acquittal after a full trial and thus does not preclude the continuation of proceedings by the Enforcement Directorate. The court examined whether the closure of proceedings based on the acceptance of a 'B' report is akin to an acquittal or discharge, which would affect the legitimacy of the Directorate's actions.

Applicability of Supreme Court's Judgment in VIJAY MADANLAL CHOUDHARY & OTHERS VS UNION OF INDIA & OTHERS:
The court referred to the Supreme Court's judgment, which outlined that proceedings in the Enforcement Case Information Report (ECIR) cannot continue if the accused is acquitted after a full trial, discharged, or if proceedings are quashed by the High Court. The court concluded that the acceptance of a 'B' report and closure of proceedings, although not explicitly covered by the Supreme Court's judgment, has a similar effect to a discharge since no trial is conducted.

Conclusion:
The court determined that the closure of proceedings on acceptance of the 'B' report is akin to a discharge, entitling the petitioner to the benefit of the Supreme Court's findings. Consequently, the court quashed the summons issued by the Enforcement Directorate.

Order:
1. The Criminal Petition is allowed.
2. The summons issued to the petitioner on 02.02.2023 by respondent no.2 stands quashed.

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