Tainted funds in hotel booking account remain attachable where cancellation and forfeiture are not proved by documents

A director's challenge to attachment was not maintainable where no property standing in his name was attached and no direct prejudice was shown. The tribunal also upheld provisional attachment of the hotel company's bank account to the extent of the marriage booking amount, because the payment came from the accused group, the claimed cancellation or forfeiture was not supported by any contemporaneous written proof, and the money continued to bear the character of tainted funds. The attached amount was therefore permitted to remain in the account pending trial.

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Issues: (i) Whether the appeal filed by the director of the hotel company called for interference when no property standing in his name was under attachment; (ii) whether provisional attachment of the hotel company's bank account for Rs. 20,00,000 received towards room booking for a marriage was liable to be set aside.

Issue (i): Whether the appeal filed by the director of the hotel company called for interference when no property standing in his name was under attachment.

Analysis: The bank account attachment related to the company and not to any property of the director. He was not shown to be an accused and no adverse effect on any property belonging to him was demonstrated. In the absence of any attached property or other discernible prejudice, no cause for challenge by him was shown.

Conclusion: The appeal by the director was not liable to succeed and was dismissed.

Issue (ii): Whether provisional attachment of the hotel company's bank account for Rs. 20,00,000 received towards room booking for a marriage was liable to be set aside.

Analysis: The amount was received in the hotel company's account through the accused group in connection with room booking. The claimed forfeiture of the booking amount was not supported by any written cancellation or documentary proof. On the record, no marriage took place and the rooms were not occupied, yet the company retained the amount in its account. In these circumstances, the amount continued to bear the character of tainted money received from the accused and the attachment to that extent was justified.

Conclusion: The provisional attachment of the bank account to the extent of Rs. 20,00,000 was upheld.

Final Conclusion: The challenge to the attachment failed, and the attached amount was permitted to remain in the account pending the trial.

Ratio Decidendi: Money credited from tainted sources remains attachable where the claimed lawful forfeiture or cancellation is not proved by contemporaneous documentation, and a challenge by a person with no attached property or shown prejudice is not maintainable in substance.

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