Full Text
HIGH COURT OF DELHI
Date of Decision: 09.02.2026
THE DEPUTY DIRECTOR, DIRECTORATE OF ENFORCEMENT .....Appellant
Through: Mr.Zoheb Hossain, Spl.
Counsel for ED with Mr.Vivek Gurnani, Panel Counsel &
Mr.Kartik Sabharwal, Advs.
Through: Ms.Priyal Sarawagi & Mr.Vansh Dhall, Advs.
HON'BLE MR. JUSTICE RAVINDER DUDEJA NAVIN CHAWLA, J. (ORAL)
JUDGMENT
1. This appeal has been filed under Section 42 of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as, the ‘PMLA’), challenging the order dated 30.08.2019 passed by the learned Appellate Tribunal (PMLA) in FPA-PMLA-2751/DLI/2018, titled JM Financial Asset Reconstruction Company Limited v. The Deputy Director, Directorate of Enforcement, Delhi, allowing the appeal filed by the respondent herein, with the following observations and directions:-
2. We are informed that during the pendency of the present appeal, several mortgaged properties were brought under the rigours of Insolvency and Bankruptcy Code (IBC) as mentioned below:i) Sterling Biotech Limited:- Vide order dated 11.11.2022, Sterling Biotech has been sold by the liquidator as a going concern as per the Code and IB Board of India (Liquidation Process) Regulations, 2016. ii) Sterling International Enterprises Limited:- Vide order dated 18.10.2021, the National Company Law Tribunal (NCLT) Mumbai had ordered liquidation of the said company. iii) Sterling SEZ and Infrastructure Limited:- Vide Order dated 18.10.2021, NCLT Mumbai had ordered liquidation of the said company. iv) PMT Machines Private Limited: Vide order dated 03.06.2022, NCLT Mumbai has approved the resolution plan filed in relation to the CIRP of the said company.
3. Subsequently, the Supreme Court, vide order dated 19.11.2025 passed in W.P.(Crl.) No. 37/2020 and W.P.(Crl.) No. 48/2020, titled, Hemant S. Hathi v. Central Bureau of Investigation & Ors. and Chetan Jayantilal & Ors. v. Central Bureau of Investigation & Ors. has been pleased to quash the criminal proceedings initiated by the petitioners therein, in view of a full and final settlement with the lender banks and the investigating agencies.
4. Placing reliance on the order dated 11.12.2024 passed by the Supreme Court in SLP(C) Nos. 29327-29328/2019, titled Committee of Creditors v. Directorate of Enforcement & Ors., and other similar orders, the learned counsel for the appellant submits that, without prejudice to the rights and contentions of the respective parties, the subject properties be deemed to have been released to the successful Resolution Applicant in terms of Section 8(8) of the PMLA read with Rule 3A of the Prevention of Money Laundering (Restoration of Property) Rules, 2016.
5. Though the learned counsel for the respondent submits that in view of the order passed by the learned Appellate Tribunal impugned in the present appeal, the attachment of the properties in question has itself been held to be without jurisdiction, we are of the opinion that, in view of the subsequent developments, the present appeal has, in fact, been rendered academic in nature.
6. Accordingly, leaving the question of law open, we direct that, without prejudice to the rights and contentions of either of the parties, the subject properties be treated to have been restored under Section 8(8) of the PMLA and the possession handed over to the respondent herein, JM Financial Asset Reconstruction Company Limited.
7. With the above directions, the appeal, along with the pending applications, is disposed of.
NAVIN CHAWLA, J RAVINDER DUDEJA, J FEBRUARY 9, 2026/rv/pb