Prevention of Money Laundering Act, 2002—Substitution of Provisionally Attached Property—Permissibility and Conditions—Substitution of provisionally attached property—The petitioner sought substitution of the provisionally attached property with other unencumbered, marketable assets—The Court permitted such substitution, holding that provisional attachment under law is subject to judicial scrutiny and may be replaced with equivalent security in appropriate cases—The substitution was allowed subject to strict conditions: submission of a No Encumbrance Certificate for the substituted property, an undertaking not to alienate or encumber it, deposit of original title documents with the concerned authority, execution of an indemnity bond, full disclosure of the source of funds used to acquire the substituted...

Uttar Pradesh Gangster and Anti-Social Activities (Prevention) Rules, 2021—Attachment of properties under the Uttar Pradesh Gangster and Anti-Social Activities (Prevention) Rules, 2021, the appellant claimed lawful acquisition through farming, milk distribution, and fisheries—Supporting his claim with financial papers, he contested being labeled a gangster—The State of U.P. argued the appellant's involvement in illegal activities, relying on police reports and decisions by the District Magistrate and Special Judge—The High Court quashed the impugned orders, stating that attached properties must be proven to be acquired by a gangster through offenses under the Gangster Act—It criticized the failure to consider the appellant's documentary evidence and the disregard of procedural provisions—The cou...

Criminal Procedure Code, 1973 (CrPC)—Section 421(1)(b)—Warrant for Levy of Fine—Attachment of Property by Unauthorized Officer—Interference by High Court Justified—The petitioner challenged the order of the Special JMFC (Sales Tax), Bengaluru, which had issued an attachment order through the BBMP Commissioner to recover sales tax dues—The petitioner contended that, under Section 421(1)(b) of CrPC, only the District Collector is authorized to attach property, not the BBMP Commissioner—The High Court, agreeing with the petitioner's argument, held that the Special JMFC’s order was improper, as the BBMP Commissioner had no authority to enforce such attachment—The Court set aside the attachment order and granted liberty to the respondent to seek appropriate recovery orders through the D...

Criminal Procedure Code, 1973 (CrPC), 145 & 146—Attachment of property—Powers under—Exercise of Held, the executive magistrate cannot exercise the power conferred u/s 145 and 146 CrPC so as to put a clog upon the righteous use and enjoyment of an immovable property of which the holder is in peaceful and settled possession, unless a competent court of civil jurisdiction has ordered adversely to his right, title and possession and/or there is an emergent position of dispute between the rival claimants with regard to land's title and possession causing serious breach of peace—There is no justification for initiating a parallel criminal proceeding u/s 145 CrPC, when civil suit is pending qua same....

Criminal Law (Amendment) Ordinance, 1944—Section 12, Section 13—Penal Code, 1860 (IPC)—Section 120B, Section 409, Section 420, Section 467, Section 468, Section 471, Section 472—Prevention of Corruption Act, 1988—Section 13(1)(c), Section 13(1)(d), Section 13(2)—Attorney General in the context of a criminal case related to the fodder scam—Document discusses issues such as property attachment, the effect of the death of an accused, and the application of Sections 12 and 13 of the Ordinance, 1944—Ultimately, the court upholds the orders made by lower courts, dismissing the appeals in question. ...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 46, Section 60—Term "debt" is clarified to exclude rent that becomes due and payable in the future—This interpretation aligns with the usage of the word "debt" in the Income Tax Act, specifically in Section 222(1)(a) and Schedule 2, Rule 26(1)(a) of the Income Tax Act, 1961—The prohibitory order issued under the Income Tax Act employs the term "debt" in a manner consistent with its usage in Section 60 CPC, covering both presently due and payable debts as well as those due at a future date—However, it is emphasized that rent becoming due in the future falls under the category of contingent debt and is not encompassed by the order—This concordance in the understanding of the term "debt" ensures that rent obligations ari...

Criminal Procedure Code, 1973 (CrPC)—Section 197—Sanction for prosecution—Necessity of—Attachment of property under lawful order—Appellant, a Tehsildar, faced a complaint for alleged offences related to the seizure and auction of a scooter in the course of recovering lease money—The complaint invoked Section 379 of the Indian Penal Code—The Tehsildar contended that his actions were in discharge of official duty under the M.P. Land Revenue Act. However, the High Court, examining the legality of the order, held that Section 197 of the CrPC did not apply, as the Tehsildar had allegedly misused his powers—The Supreme Court, disagreeing with the High Court, ruled that the Tehsildar's acts were bona fide and in exercise of official duty—Referring to Matajog Dobey's case, the Court em...

Civil Procedure Code, 1908 (CPC)—Order 21, Rule 30—Amal Kumar Ghatak vs. United Bank of India: Scope of execution of money decree—Appointment of receiver—Orders beyond scope of executing court—Pending suit for specific performance—Orders set aside—Parties directed to approach court for relief—Maintenance of status quo—Expedited hearing of pending suit—No costs. ...

Criminal Procedure Code, 1973 (CrPC)—Section 145, Section 146—Attachment of property - Successive orders of attachment were issued by the Magistrate despite the revival of the initial attachment upon dismissal of a revision application, the High Court erred in entertaining a second revision application under Section 482 of the Code of Criminal Procedure—Additionally, the High Court misinterpreted Sections 145 and 146 of the Code regarding the withdrawal of attachment—It was clarified that once a competent civil court issues an interim order, the Magistrate's attachment ceases, and the Magistrate can withdraw the attachment—Thus, the appeal was allowed, setting aside the High Court's order—The appellants were directed to amend their plaint to include a claim for declaration of title to the p...

  Civil Procedure Code, 1908 (CPC)—Order 21 Rule 35, Section 64—Eviction order against the appellant, who claimed tenancy under mortgagee Narain Prasad—The appellant resisted the execution of a decree by Ganga Sahai under Order XXI, Rule 35 of the Code of Civil Procedure, 1908, arguing protection under the Rajasthan Premises (Control of Rent and Eviction) Act, 1950—The Executing Court issued a warrant of possession to the decree-holder, while the Additional District Judge favored the appellant, deeming him protected under the Act—The High Court, however, ruled that the lease was not an act of prudent management as per Section 76(a) of the Transfer of Property Act, 1882, and thus void post-redemption.The Supreme Court further noted that the lease contravened Section 64 of the Code of Civil Procedure, 1...

Civil Procedure Code, 1908 (CPC)—Order 21, Rule 43—Attachment of property—The transfer of possession to the Court or its agent, the appointment of a sapurdar (custodian) for property is a legal extension of the Court’s possession—When an amin (officer) or sapurdar places the attached property in the custody of a third party, the third party acts as a bailee of the sapurdar—This principle maintains that the Court’s possession continues through the bailee's custody—Consequently, if a decree-holder, acting as a bailee, has custody of the property, their possession is still legally under the Court's control—A property owner who forcibly retrieves attached property from the custody of such a bailee, even if the bailee is the decree-holder, commits an offence under Sections 424 and 4...