2021 (1) TMI 1326 - AT - Money Laundering

Tribunal Rejects Contempt Charges Over Status Quo Violation; Directs Parties to Maintain Status Quo Until February Hearing.

The Appellate Tribunal dismissed the applications filed by the appellants seeking contempt charges against the respondent (ED) for alleged violation of a ... Violation of status quo order by respondent (ED) regarding possession of properties - Order XXXIX rule 2(A) CPC read with section 151 CPC - HELD THAT:- On the last date i.e. on 14-12-2020 the respondent (ED) categorically submitted that they have already taken possession of all the properties except the two properties specifically mentioned in the said order. There were certain observations in the order made by this Tribunal. The issue of impugned notices dated 12-1-2021 does not violate the order of this Tribunal, therefore, the applications have no merit and accordingly dismissed. Issues:Violation of status quo order by respondent (ED) regarding possession of properties.Analysis:The appellants filed urgent applications seeking punishment for the respondent (ED) for contemptuous acts, alleging violation of the status quo order passed by the Appellate Tribunal on 14-12-2020. The applications were filed under Order XXXIX rule 2(A) CPC with prayers to maintain the status quo till the next date of hearing. The respondent (ED) had issued eviction notices dated 12-1-2021 despite the Tribunal's order to maintain status quo.During the hearing, the appellants argued that the respondent (ED) had disregarded the Tribunal's order of status quo and requested the Tribunal to pass an order to maintain the status quo. The respondent's counsel, on the other hand, contended that the notices issued were in line with the Tribunal's order of 14-12-2020 and there was no violation.After hearing both sides and examining the previous order dated 14-12-2020, the Tribunal noted that the respondent (ED) had already taken possession of all properties except the two specifically mentioned in the order. The Tribunal's order highlighted that there was no prima facie case for granting a stay order of status quo for the mentioned properties. It allowed certain actions regarding the properties, including removal of machinery and vacating rented premises by tenants.The Tribunal concluded that the impugned notices dated 12-1-2021 did not violate the order of 14-12-2020. Therefore, the applications seeking punishment for contempt were dismissed. The Tribunal directed both parties to maintain the status quo with respect to the properties until the next date of hearing, which was scheduled for 26th February 2021.