EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT UNIVERSITY Vs. THE JOINT DIRECTOR, DIRECTORATE OF ENFORCEMENT, GOVERNMENT OF INDIA AND ORS.

JUDGEMENT

(1.) In this Writ Petition, the Petitioner, namely, Eastern Institute for Integrated Learning in Management University, seeks to quash and set aside the show cause notice dated 03-02-2015, Annexure P/2, issued by the Respondent No.3 under Sub-Section (1) of Section 5 of the Prevention of Money-Laundering Act, 2002 (for short "PMLA") and the subsequent proceedings consequential thereto.

(2.) Shorn of all details, the principal ground seeking to quash the impugned show cause notice issued under Section 8 of the PMLA by the Respondent No.3 is that it was issued by a Bench of the Adjudicating Authority constituted under Clause (b) of Sub-Section (5) of Section 6 of the PMLA which did not have a Judicial Member. As per the PetitionerUniversity, a bare reading of Sections 6, 8 and 11 of PMLA read with Regulations 21 and 22, would reveal that the Respondent No.3 discharges judicial function exercising judicial powers. As a judicial mechanism under PMLA, the Respondent No.3 is vested with the powers of a Civil Court as provided under the Code of Civil Procedure, 1908, in matters enumerated under Section 11 of the PMLA and Regulations 21 and 22.

(3.) At the time of arguments, Mr. Shakeel Ahmed, Learned Counsel for the Petitioner-University, re-emphasised the aforesaid proposition and urged that such was the intention of the Legislature can be clearly made out from Sub-Sections (2) and (3) of Section 6 of the PMLA. On this, he would refer to L. Chandra Kumar vs. Union of India and Others, 1997 3 SCC 261; Union of India vs. R. Gandhi, President, Madras Bar Association, 2010 11 SCC 1 and Tamil Nadu Generation and Distribution Corporation Limited vs. PPN Power Generating Company Private Limited, 2014 11 SCC 53.