2023 (4) TMI 1474 - HC - Money Laundering

Interim relief to stay criminal proceedings pending resolution of an underlying account dispute; proceedings kept in abeyance and affidavits directed.

Interim relief was granted to keep criminal proceedings arising from allegations of breach of trust and fraud in abeyance pending resolution of an ... Stay of proceedings - Abeyance of criminal trial - Service of notice - Filing of counter affidavit and rejoinder - Merits to be considered - Offences under Sections 406 and 420 IPCStay of proceedings - Abeyance of criminal trial - Merits to be considered - Offences under Sections 406 and 420 IPC - Whether further proceedings in Case No. 1559 of 2019 (arising out of Crime No. 0353 of 2015 under Sections 406 and 420 IPC) should be kept in abeyance pending consideration by this Court. - HELD THAT: - The Court recorded that the petition raises disputes of an accounting nature between the parties in respect of material supplied and rent, and that the matter requires consideration on merits by this Court. In view of the pending petition and the need to consider the matter finally, the Court directed that further proceedings in the trial court matter be kept in abeyance until the next date of listing so that the High Court can examine the issues raised. This interim measure is directed notwithstanding earlier attempts at service and the criminal charges under Sections 406 and 420 IPC, to preserve the status quo while the High Court proceeds to adjudicate the petition on merits.Further proceedings in the trial (Case No. 1559 of 2019, arising out of Crime No. 0353 of 2015 under Sections 406 and 420 IPC) are ordered to be kept in abeyance until the next date of listing.Service of notice - Filing of counter affidavit and rejoinder - Directions as to service of notice and timetable for filing responses to the petition. - HELD THAT: - The Court noted that notice upon opposite party no. 2 had been attempted and a speed post record indicated delivery confirmation but that proper personal appearance had not occurred. To enable final adjudication, the Court directed opposite parties to file their respective counter affidavits within four weeks, and permitted the petitioner to file a rejoinder affidavit within two weeks thereafter. These procedural directions are intended to ensure that all parties have an opportunity to place material before the Court prior to final hearing.Opposite parties to file counter affidavits within four weeks and rejoinder, if any, within two weeks thereafter; notice-related steps recorded and the State may be represented by its A.G.A.Final Conclusion: Interim order: proceedings in the trial court arising out of Crime No. 0353 of 2015 (Case No. 1559 of 2019) are stayed/kept in abeyance until the next listing; parties directed to file counter affidavits and rejoinder within the specified time frames for the High Court to consider the matter on merits. Issues: Whether interim relief in the form of keeping the criminal proceedings arising out of Case Crime No. 0353 of 2015 under Sections 406 and 420 IPC pending before the Additional Chief Judicial Magistrate-II, Gautam Buddh Nagar should be granted and the proceedings kept in abeyance until the next date of listing.Analysis: The applicants sought stay of the trial proceedings on account of a civil/accounting dispute between the parties concerning supply of material and rent. Notice efforts upon the private respondent were recorded; service attempts included speed post with delivery confirmation but personal appearance did not occur. The Court considered the nature of the dispute as essentially concerning settlement of accounts and concluded that the matter requires consideration on merits; in the meantime, an interim arrangement to preserve the status quo was deemed appropriate pending filing of counter affidavits and further hearing.Conclusion: The Court granted interim relief by directing the criminal proceedings in Case No. 1559 of 2019 (arising out of Case Crime No. 0353 of 2015 under Sections 406 and 420 IPC) to be kept in abeyance until the next date of listing (05.07.2023), and directed filing of counter and rejoinder affidavits within specified timeframes.