2024 (7) TMI 1170

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..../CEZO/03/PMLA/2016, dated 26.11.2019, issued under Section 5(1) of the Prevention of Money Laundering Act, 2002, (hereinafter referred to as 'the Act') dated 05.11.2019, insofar as the scheduled property is concerned and further direct the respondent to handover the possession to the petitioner. 2.1. The property, being a house plot bearing No.E5, Akshaya Garden measuring about 1,200 sq.ft., comprised in old S.No.577/2A (part), new S.No.577/2A6, Nedungundram Village within the Sub Registration District of Tambaram and registration District of Kancheepuram (hereinafter referred to as 'the subject property'), was originally purchased by one C.Sasi, through an auction under a sale certificate registered as Document No.6688/2....

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....ct property was purchased on 28.11.2018, much prior to the provisional attachment order under Section 5 (1) of the Act, which was passed on 29.05.2019, and later confirmed by the Adjudicating authority on 05.11.2019 and since no notice was issued to the petitioner, who was the lawful owner of the property, the attachment itself cannot be legally sustained. 5. We have perused the true copies of the sale deed dated 28.11.2018 duly registered in the name of the petitioner, as well as the revenue records, including the patta, wherein the petitioner's name has been incorporated. The encumbrance certificate produced by the petitioner for the subject property also discloses the encumbrance of the registered sale deed in favour of the petiti....

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....o mandates such service to each and everyone of the persons who jointly hold the attached property. The word employed in both the provisos to Section 8(1) is "shall". Similarly, under Rule 3(2) of the Rules, the Authorized Officer is mandated to endorse a copy of the provisional attachment order to all the concerned persons, including the persons in possession of the attached properties. Here again, the term employed under the Rules is "shall". Likewise, Rule 4 also provides for a mandatory procedure for service of notice on the corporate bodies, societies, trusts, etc. When all these provisos and rules are conjointly read with Section 8(1), prudence may require that the term "may" employed in Section 8(1) be read as "shall". 8. The obli....

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.... W.P.No.898 of 2022 dated 25.04.2022, a Coordinate Bench of this Court had dealt with a similar situation and set aside the attachment over the property therein. The relevant portion of the order reads as follows: "7. Though an appeal is provided before the Appellate Tribunal for Forfeiture of Property under Sections 25 and 26 of Prevention of Money Laundering Act, 2002 against the confirmation order passed under Section 8 of Prevention of Money Laundering Act, 2002, we are not inclined to send Amarabalan, the petitioner herein there for the following reasons: (a) He was not a party either in the proceedings under Section 5 or in the proceedings under Section 8 of Prevention of Money Laundering Act, 2002; (b) He w....