DELHI HC CAUTIONS PMLA ADJUDICATING AUTHORITY ON PASSING ‘TEMPLATED ORDERS’

The Delhi High Court in the case State Bank of India v. The Deputy Director, Enforcement Directorate observed and has questioned the Adjudicating Authority under Prevention of Money Laundering Act, 2002 about passing which being about passing “templated orders” and stated that using the identical templated paragraphs must be avoided. The bench comprising of Justice Prathiba M Singh in the case observed and has stated that the use of identical templated paragraphs could be reflected as the non-application of mind by the Authority concerned and hence which ought to be avoided. Therefore, the Adjudicating Authority is being cautioned about passing such templated orders.

In the present case, the court was hearing the petition moved by State Bank of India, wherein challenging an attachment order passed by Adjudicating Authority dated 22.12.2021.

Before the court, it has been submitted by the State Bank of India that its case was not even considered by the Adjudicating Authority, despite filing for a detailed reply and for explaining its position which being along with documents and relevant decisions.

The counsel, Advocate Chandrachur Bhattacharyya appearing for the petitioner bank submitted before the court that the Adjudicating Authority was passing the template of cutpaste orders. However, the complaint of similar orders was being passed by the Adjudicating Authority was shown to the court.

The bench headed by Justice Singh in the case observed that the Adjudicating Authority was using identical paragraphs in several orders which being at least in the respect of portions which relates to compliance as stated under sections 5(1) and 8(1) of PMLA, 2002.

The court stated while cautioning and Adjudicating Authority stated that the above position shall be brought to the notice of the Adjudicating Authority by ld. Counsel appearing for the Enforcement Directorate. It has been noted by the court that the order under challenge was an Attachment Order appealable to the Appellate Tribunal. Thus, the court relegated the petitioner bank to the Appellate Tribunal for availing of the appellate remedies.

Accordingly, the court stated that the appeal of the petitioner made shall now be listed and will be taken up by the Appellate Tribunal, for adjudication in accordance with the law. Further, the court left all the contentions of the parties open.