https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=291353 https://www.taxtmi.com/caselaws?id=291353 Money Laundering - Scheduled Offence or not - Section 44(1)(c) of the Prevention of Money Laundering Act, 2002 - whether, it is obligatory on the part of the competent officer to seek a committal of the predicate offence in every case and even if such an option is available to the officer and if in exercise of such option, an application is filed, is the Court, as a matter of course, bound to allow it? - HELD THAT:- It is clear that Parliament did not intend to make it obligatory on the authorized officer under the Money Laundering Act, to invariably make an application under Section 44(1)(c) of the Act. Otherwise, there is no reason as to why the committal under Section 44(1)(c) should be dependent on an application by the competent officer under the Money Laundering Act. The Parliament could not have been oblivious of the fact that at least in some cases, the predicate offences may be triable by special courts authorized for the specific purpose and that the Special Court under the Money Laundering Act may not be competent to try such offences, as has happened in this case. The High Court held that the main object of constituting a special court under Money Laundering Act was for a speedy trial of offences under the Act. Hence, it was held that, merely because a complaint was filed by the 2nd respondent before the special court with regard to money-laundering, it cannot be stated that the case investigated by CBI with regard to the aforesaid crime also has to be tried by the special court under the Act. Hence, inasmuch as an offence of money-laundering was not charged by CBI, the proceedings before the CBI cannot be transferred on the mere fact that aforesaid offence was the basis of money-laundering. If such a view was adopted, all the cases pertaining to predicate offences should be stayed once the complaint under Money Laundering Act is filed in special court, it was held - Court opined that since the offence of money-laundering was inextricably linked to the predicate offence, it will be in the ultimate interest of the prosecution to see that charges for predicate offence are proved, so as to bring the amounts involved in the cases for the predicate offence, within the ambit of definition of proceeds of crime . That was the reason why the Legislature in its wisdom has given the option to the department to seek for a committal, rather than to give the option to the accused, so that delay may not be caused in the trial of offence for the predicate offence, it was held. Section 44(1)(c) cannot be interpreted to authorize the Court to commit a case relating to scheduled offence to an incompetent court and thereby defeat the purpose of Act. Section 44(1)(c) also cannot be interpreted to authorize a court to commit a case pending before it to a court which lacks jurisdiction and to confer jurisdiction on a Court which inherently lacks it - Section 44(1)(c) should receive a reasonable interpretation which will augment the purpose of Act. Necessarily, it has to held that, Section 44(1)(c) does not imply that, in every case contemplated under that sub-section, the competent authority shall make application for committal of case relating to scheduled offence to a special court under the Money Laundering Act. The authorized officer competent to lay the complaint is vested with a solemn discretion to carefully apply his mind and only in appropriate cases where the committal to special court will not defeat the prosecution and on the other hand, will enable a speedy disposal of case and achieve purpose of Statute should file an application. If the Court which has taken cognizance of scheduled offence is other than the special court which has taken cognizance of the complaint of offence of money-laundering, the competent authority under the Money Laundering Act to file a complaint, is given a discretion to make application under Section 44(1)(c) in appropriate cases, in the interest of justice and for a speedy trial. The Court also has to duly apply its mind and take a proper decision in accordance with law - Application allowed. Case-Laws Money Laundering Fri, 08 Nov 2019 00:00:00 +0530