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        Money Laundering

        2026 (4) TMI 1085 - HC - Money Laundering

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        Cognizance after BNSS commencement requires notice to the accused before the court can proceed under Section 223. Where a complaint is filed after the commencement of Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023, cognizance cannot be taken unless the ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Cognizance after BNSS commencement requires notice to the accused before the court can proceed under Section 223.

                            Where a complaint is filed after the commencement of Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023, cognizance cannot be taken unless the accused is first given an opportunity of being heard. The Madras HC followed the binding Supreme Court position that the proviso to Section 223(1) bars cognizance without notice to the accused, and distinguished contrary authorities on their facts. Cognizance taken without issuing notice was therefore held illegal and unsustainable, the cognizance order was set aside, and the complaint was restored to the original file for proceedings in accordance with law.




                            Issues: Whether cognizance could be taken on a complaint filed after 1 July 2024 without issuing notice to the accused in view of Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023.

                            Analysis: The complaint was filed after the Bharatiya Nagarik Suraksha Sanhita, 2023 came into force. The Supreme Court had authoritatively held that Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023 applies to complaints of this nature and that the proviso to sub-section (1) bars cognizance without giving the accused an opportunity of being heard. The contrary authorities relied on were distinguished on their facts and did not displace the binding effect of the Supreme Court ruling.

                            Conclusion: Cognizance taken without issuing notice to the accused was illegal and unsustainable; the order taking cognizance was set aside.

                            Final Conclusion: The complaint was restored to the original file and proceedings were directed to continue in accordance with law, resulting in partial relief to the petitioners.

                            Ratio Decidendi: Where a complaint is filed after the commencement of Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023, cognizance cannot be taken without first affording the accused an opportunity of being heard.


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