TaxTMI 
TaxTMI 
2023 (9) TMI 1379
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....ndent to close / drop the proceedings against the petitioner in connection with ECIR in F.No.ECIR/CEZO- 1/19/2021. 2. Mr.C.Manishankar, learned Senior counsel appearing on behalf of counsel on record for writ petitioner submits that pursuant to the aforementioned ECIR [to be noted ECIR stands for 'Enforcement Case Information Report'], a summon dated 27.06.2022 calling upon the petitioner to appear before the respondent on 08.07.2022 at 10.00 a.m. along with certain documents set out in the schedule to summons was issued. Learned Senior counsel submits that ECIR in summon is predicated on FIR No.278 of 2020 dated 17.09.2020 on the file of CCB-I (Chennai-CCB) for alleged offences under Sections 406, 419, 420, 465, 468 and 471 of 'Indian Penal Code, 1860 (Act 45 of 1860)' ['IPC' for the sake of brevity]. To be noted, summon does not refer to this FIR but this is averment of the petitioner that ECIR in summon is predicated on aforementioned FIR. Learned Senior counsel submits that the aforementioned FIR has since ended in a closure on 01.07.2021 vide proceedings before jurisdictional Metropolitan Magistrate Court i.e., 'Court of the Special Court o....
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....to this Court. 6. List four weeks hence. List on 24.07.2023.' 3. The aforementioned 26.06.2023 proceedings/orders shall now be read as an integral part and parcel of this order. The aforementioned 26.06.2023 proceedings captures essentials that are imperative for appreciating this final order and therefore we are not setting out the same again and burdening this final order with further facts. To be noted, the short forms, abbreviations and short references used in the 26.06.2023 proceedings shall continue to be used in the instant final order also for the sake of convenience and clarity. To be noted, in the aforementioned 26.06.2023 proceedings an inadvertent typographical / secretarial error has crept in, the same is 'ECIR in summon is predicated'. This expression should read as 'ECIR and summon are predicated'. This shall now be read as an Errata / Corrigendum and aforementioned 26.06.2023 which is now an integral part and parcel of this final order shall be read accordingly. 4. Today, Mr.Mani Shankar, learned senior counsel instructed by Mr.R.Palaniandavan, learned counsel on record for the writ petitioner and Mr.N.Ramesh, learned Special Publ....
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.... 10. In the light of the narrative thus far, it is clear that in the case on hand, there is closure of predicate offence and there is no disputation or contestation that this closure of predicate offence has attained finality and has been given legal quietus. 11. Reverting to two case laws relied on by the learned senior counsel, facts and questions are similar i.e., whether PMLA proceedings will survive on the teeth of closure of predicate offence when such closure has attained finality/given legal quietus. In Jagathrakshakan's case, relevant paragraphs are paragraphs 3 and 4 and the same read as follows: '3. While so, when the matter was taken up for hearing, both sides represented that this court has allowed Crl.O.P.Nos.12985 and 12986 of 2020 on 23.09.2022 quashing the two First Information Reports in CBCID Crime Nos.2 and 3 of 2016. 4. In the light of the law laid down by the Supreme Court in Vijay Madanlal Choudhary and Others Vs. Union of India and Others (2022 SCC OnLine SC 929), the learned counsel for the petitioner prayed for quashment of the proceedings before the Enforcement Directorate.' 12. In Harish Fabiani's case, relevant....
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....Money Laundering Act, 2002 is infructuous having been decided by the Hon'ble Supreme Court in Vijay Madanlal Choudhary v. Union of India, 2022 SCC OnLine SC 929. b) The ECIR no. ECIR/07/HIU/2021 registered by the Directorate of Enforcement, Department of Revenue, Ministry of Finance, Government of India, under FIR No. 129/2021 dated 13 April, 2021 registered by P.S. Wada, Dist. Palghar, Maharashtra stands quashed. c) All proceedings arising from the ECIR No. ECIR/07/HIU/2021 are set aside and there would be no further coercive action or search and seizure or summons arising from the said ECIR. d) The Look out Circulars issued by respondents pursuant to the ECIR No.ECIR/07/HIU/2021 are also set aside.' 13. This Bench also notices that Parvathi Kollur's case (Parvathi Kollur and Another Vs. State by Directorate of Enforcement) reported in 2022 SCC OnLine SC 1975 in a similar fact situation has restated paragraph 187 (d) of Vijay Madanlal Choudhary which reads as follows: '187. .... (d) The offence under Section 3 of the 2002 Act is dependent on illegal gain of property as a result of criminal activity relating to a scheduled offe....
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....Learned Additional Solicitor General submitted that since there is a closure report in the predicate offence, therefore, no further proceedings under the PMLA Act could be continued as per the observations of the High Court in the impugned order(s). He, however, submitted that in the event any further action is taken in respect of the predicate offence, then liberty may be reserved to the petitioner herein to take further steps under the said Act, including reviving these proceedings. The submission of learned ASG is placed on record. The Special Leave Petitions are disposed of in light of the aforesaid submission and liberty is accordingly reserved to the petitioner. Pending applications shall stand disposed of.' 16. Applying Padma Sundara Rao principle, the ratio in Jagathrakshakan's case, Harish Fabiani's case and Emta Coal's case, all of which in turn turn on Vijay Madanlal's case of Hon'ble Supreme Court would apply in all force to the case on hand. To be noted, Padma Sundara Rao case [Padma Sundara Rao Vs. State of Tamil Nadu reported in (2002) 3 SCC 533] is a celebrated case law rendered by a Constitution Bench and theref....