Karnataka High Court Sets Aside PML Tribunal's Order, Emphasizes Statutory Limits
Tribunal's decision to remand case to Adjudicating Authority deemed unsustainable due to lack of statutory provision
The Karnataka High Court, in a significant ruling, has set aside the order of the Prevention of Money Laundering Act (PMLA) Tribunal that remanded the case involving M/s Devas Multimedia Pvt Ltd back to the Adjudicating Authority. The judgment emphasizes that the Tribunal, as a statutory body, does not possess inherent powers to remand cases unless explicitly granted by the statute.
The appeal was brought forth by the Joint Director of the Directorate of Enforcement against the decision of the PML Tribunal dated September 11, 2019. The Tribunal had previously overturned the Adjudicating Authority’s confirmation of a provisional attachment order concerning assets of M/s Devas Multimedia, valued at over Rs. 21 crore, citing insufficient reasoning by the Authority.
The High Court, presided over by Justices D.K. Singh and Venkatesh Naik T, clarified the limitations of the Tribunal’s powers under the PMLA. The Court noted that while the Tribunal can confirm, modify, or set aside orders, the power to remand must be explicitly provided for within the statute, a provision absent in the current legal framework of the PMLA.
The learned counsel for the appellant, Sri Unnikrishnan M., argued that the Tribunal's act of remanding the case was beyond its statutory powers. He highlighted the absence of a remand provision in the PMLA, contrasting it with other statutes like the Central Excise Act and Customs Act, where remand powers are specifically mentioned.
The High Court supported this stance, referencing precedent cases that affirm the necessity of explicit statutory provisions for remand powers. The ruling underscores the importance of adhering to legislative intent and statutory boundaries, reinforcing that tribunals cannot assume powers not conferred upon them.
This decision not only impacts the immediate parties involved but also sets a precedent regarding the interpretation of statutory powers of appellate tribunals under the PMLA. The matter is now directed back to the Tribunal for a decision on its merits, without remand to the Adjudicating Authority.
Bottom Line:
Prevention of Money Laundering Act - Appellate Tribunal under PML Act does not have the power to remand the matter back to the Adjudicating Authority unless specifically conferred by the statute.
Statutory provision(s): Prevention of Money Laundering Act, 2002 - Section 42, Section 26(4)
