quashed an ECIR against former DGP MS Jaffar Sait in a money laundering case, holding that the Madras High Court erred by rehearing the matter after having already allowed his quashing petition, without issuing notice to the parties.
The Supreme Court today quashed an ECIR against former DGP MS Jaffar Sait in a money laundering case, holding that the Madras High Court erred by rehearing the matter after having already allowed his quashing petition, without issuing notice to the parties.
A bench of Justice Abhay S Oka and Justice Ujjal Bhuyan allowed Sait’s appeal against the Madras High Court’s decision to relist for hearing his petition that had been allowed earlier. The Court also disposed of Criminal OP No. 17762 of 2024, which was the quashing petition filed by Sait before the High Court.
“ If the division bench intended to recall the order, elementary principles of natural justice required the division bench to issue notice to the parties and especially the appellant calling upon him to show cause why the final order should not be recalled. It was inappropriate on the part of the division bench to have straightaway listed the petition for fresh hearing”, the Court held.
The Court noted that since the filing of Sait’s plea before the Supreme Court, the predicate offence had been quashed against all accused. “The only option left is to quash the ECIR,” the Court observed.
The case against Sait involved allegations of illegally acquiring a plot from the Tamil Nadu Housing Board in 2011. A corruption case filed by the Directorate of Vigilance and Anti-Corruption, which was the predicate offence for the money laundering case, was quashed by the Madras High Court in 2019. Sait’s quashing petition before the HC challenged the ED’s Enforcement Case Information Report (ECIR) filed on June 22, 2020, and the ensuing proceedings against him.
The Madras High Court division bench of Justice SM Subramaniam and Justice V Sivagnanam had initially quashed the ED’s complaint on August 21, 2024, by orally pronouncing the order in the court. However, on August 23, 2024, the same bench listed the matter for re-hearing without issuing any notice to the parties. The High Court later reserved its judgment after this rehearing.
The Supreme Court stayed the High Court proceedings on September 6, 2024, and directed the Registrar General of the Madras High Court to examine the case records. On September 30, 2024, the Supreme Court remarked that the Madras High Court’s conduct was “absolutely wrong.”
The report submitted by the Registrar General confirmed that the Division Bench had indeed passed a final order on August 21, 2024, allowing the writ petition. The case status on the court portal reflected this outcome until oral directions were issued by the judges on the evening of August 21, 2024 to relist the matter on August 23, 2024, the Court noted.
“The petition was first allowed and then relisted for hearing. From the report of the Registrar General of the High Court we have no manner of doubt that the petition was allowed but the reasoned order was not uploaded”, the Court observed.
The Court clarified that if the order quashing the predicate offence is later set aside, the Enforcement Directorate may apply to the Supreme Court for recall of this order and for restoration of the ECIR.
Senior Advocate Gopal Sankaranarayanan appeared for Jaffar Sait while Advocate Zoheb Hossain appeared for the Enforcement Directorate.
Case no. – Diary No. 39548/2024
Case Title – MS Jaffar Sait v. Directorate of Enforcement
