Legal provisions involved: Sections 3, 4, 65, 70 of the Prevention of Money Laundering Act, 2002; Sections 305, 207, 63 of the Code of Criminal Procedure, 1973; Section 141 of the Negotiable Instruments Act.
Judgement by: Calcutta High Court
Judge/Bench: Justice Dr. Ajoy Kumar Mukherjee
Facts
The petitioner was a former director of two private companies and was named as their representative in a PMLA case, while also being prosecuted personally. He had resigned from one company in 2013 and argued that he should not be forced to represent the companies. The Special Court rejected his request, so he moved the High Court.
Key legal provisions
Issues raised
Can a former director or individual be forced to represent a company in a PMLA case?
Arguments of the case
The Enforcement Directorate said PMLA allows such compulsion. The petitioner said representation is separate from liability and the company should choose its own representative.
Judgement
The High Court ruled that a company is separate from its directors and must appoint its own representative. Section 70 PMLA does not override Section 305 CrPC. The court set aside the earlier order and directed the trial court to summon the company to appoint a representative.
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