Case Law Details
J.C. Flowers Asset Reconstruction Private Limited, Acting as Trustee of JCF YES Trust – 2022-23/14 Vs Directorate of Enforcement (Delhi High Court)
The Delhi High Court recently heard a case involving J.C. Flowers Asset Reconstruction Private Limited, acting as Trustee of JCF YES Trust, and the Directorate of Enforcement. The case centered around the issue of whether the Adjudicating Authority can hear cases under the PMLA Act, 2005, with only one technical member and pass attachment orders. The case also considered the question of beneficial interest in a property.
Analysis: The present petition, heard through hybrid mode, challenged the impugned order from January 27, 2023, passed by the Adjudicating Authority under PMLA Act, 2005. The Petitioner’s counsel relied on a recent judgment by the Telangana High Court in a similar matter, contending that quasi-judicial functions of bodies like the Adjudicating Authority should be decided by persons with legal experience.
The Delhi High Court, considering the legal position of past cases, reaffirmed that any person aggrieved by an order is entitled to approach the Appellate Tribunal as per Section 26 of the PMLA Act. In this context, the Supreme Court’s recent decision in M/S. South Indian Bank Ltd. & Ors. v. Naveen Mathew Philip also noted the importance of following statutory mechanisms and the cautious exercise of writ jurisdiction.
Conclusion: The Delhi High Court concluded that the petitioner, claiming a beneficial interest in the property, should approach the Appellate Tribunal under Section 26 of the Act. The court dismissed the petition, allowing the petitioner to appeal to the Appellate Tribunal under the specified section of the PMLA Act without passing judgment on the merits of the case. This case underscores the importance of established statutory mechanisms in legal proceedings and the necessity of following them to ensure a just outcome.
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