The State Of West Bengal vs. Anil Kumar Dey

2025 INSC 1413
REPORTABLE
IN THE SUPREME COURT OF NDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 5373 OF 2025
(Arising out of SLP(Crl.) No. 1003/2025)
THE STATE OF WEST BENGAL … APPELLANT(S)
VERSUS
ANIL KUMAR DEY … RESPONDENT(S)
J U D G M E N T
For ease and clarity, this judgment is divided as follows:
Signature Not Verified
Digitally signed by
RAJNI MUKHI
Date: 2025.12.10
17:36:33 IST
Reason:
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I N D E X
QUESTION TO BE CONSIDERED..........................................2
FACTUAL AND LEGAL BACKDROP....................................3
IMPUGNED JUDGMENT.........................................................8
RELEVANT PROVISIONS.....................................................10
BRIEF SUBMISSIONS............................................................15
CONSIDERATION...................................................................18
CONCLUSION.........................................................................36
SANJAY KAROL, J.
Leave granted.
QUESTION TO BE CONSIDERED
2. The short but significant question that arises in this
appeal is whether, when proceedings initiated against a person
are only under the provisions of the Prevention of Corruption
1
Act 1988 , would it be open for the investigating authorities
(police) to freeze the accounts of the accused persons under
2
Section 102 of the Code of Criminal Procedure 1973 . In other
words, are the powers under Section 18A of the PC Act, which
prescribes the application of the Criminal Law Amendment
3
Ordinance, 1944 insofar as the proceedings of attachment are
1 Hereinafter referred to as ‘PC Act’
2 Hereinafter referred to as ‘CrPC’
3 Hereinafter referred to as ‘Ordinance ‘
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concerned, and the power under Section 102 Cr.P.C., i.e., the
power of a police officer to seize certain property, co-existent or
mutually exclusive.
FACTUAL AND LEGAL BACKDROP
3. The facts in which the question framed above arises are
that:
a) Kalyan Mandal, Sub-Inspector of Police posted at
the Directorate of Anti-Corruption Branch, West Bengal,
conducted a preliminary enquiry against the Respondent’s
son, Mr. Prabir Kumar Dey Sarkar, and asked, vide
th
complaint dated 30 July 2019 addressed to the
Superintendent of Police, Directorate of Anti-Corruption
Branch, West Bengal, that a case be registered under
Section 13(2) read with 13(1)(b) of the PC Act. The
relevant extracts thereof are extracted hereinbelow:
“ …During enquiry, it could be revealed that Sri
Prabir Kumar Dey Sarkar, S/O- Sri Anil Kumar
Dey Sarkar residing at GA-130, Rajdanga Main
Road, PS-Kasba, Kolkata-700107 had joined as
Constable of Police in 1979 and was promoted to
the rank of Wireless Operator in the year 1984.
Subsequently, he joined as Sub Inspector in the
year 1991 and was promoted to the rank of
Inspector of Police in the year 2011. During his
tenure at different Police Stations, he earned huge
illegal money thereby creating enormous
movable/immovable properties, channelizing the
said illegal money in the name of his relatives
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which have been found disproportionate to his
known sources of income.
He, being a Police Officer (SI in 1991) had drawn
net salary for the check period from 2007 to 2017
to the tune of Rs.40,08,090/- (approximately) and
kitchen expenditure for the said check period will
rd
be 1-3 of his Net Salary i.e., Rs. 13,36,030/-.
Thus, his likely savings for the said check period
could be Rs. 26,72,060/-
But during the enquiry, available documents
revealed that the total movable/immovable
properties acquired by Sri Prabir Kumar Dey
Sarkar in his name as well as in the name of his
relatives, together with the expenditure incurred
during the said check period, comes around Rs.
1,49,18,628/- [One Crore Forty-enine lakh
eighteen thousand six hundred & twenty-eight].
The said amount of Rs. 1,49,18,628/- comprises
(a) construction cost, labour cost and KMC fees
of building (G+3) OF GA-130, Rajdanga Main
Road, (b) liquid cash seized from the premises of
GA-130, Rajdanga Main Road, (c) value of gold
ornaments seized from the residence of P.K. Dey
Sarkar at GA-130, Rajdanga Main Road, (d) cost
of a Flat at P.Majumdar Road, (e) landed properly
at Chak Kalar Khal measuring abut four cottahs,
(f) premium for LICI and (g) fees paid to the
Heritage School for his daughter.
During calculation the valuation of : (I) the five
storied building at BF-11, Rajdanga Main Road,
(ii) three storied building at GA-97, Rajdanga
Main Road, (iii) GB-50, Rajdanga Main Road
have not been taken into consideration which may
further compound the valuation of the total assets.
Considering his income, expenditure, likely
savings, Sri Prabir Kumar Dey Sarkar prima-
facie, has possessed huge assets disproportionate
to his known sources of income…”
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b) Pursuant to the complaint, FIR No. 09/19 came to
be registered. During investigation, certain fixed deposits
held by the Respondent ( father of the main accused ) were
frozen. An application was filed before the City Sessions
4
Court, Calcutta seeking de-freezing of the said accounts.
th
The same came to be rejected by order dated 28 March
2023. The operative portion is thus:

“..The petitioner by filing his petition has stated
that his fixed deposits have been freezed by the
police. He is 93 years old and is suffering from
various ailments. He has prayed for defreezing
the fixed deposits standing in his name.
Ld. Spl. P.P. vehemently opposes the petition. A
written objection is filed against the petition by
the I.O through Ld. Spl. P.P.
It is submitted by Ld. Spl. P.P. that Prabir Kr. Dey
Sarkar acquired movable and immovable
properties in his name and also in the name of his
relatives. The amount he acquired is abnormally
disporportaiton to his income. That apart, he has
also acquired to Benami properties standing in the
name of his nearest relatives. This petitioner has
six fixed deposits in Axis Bank, Cosba Branch.
He also has six fixed deposits in SBI, Rubi Park
branch. It is submitted that those are not standing
only in his name. Those are standing either jointly
in thename of this petitioner and Deepa Dey
Sarkar or in the name of this petitioner and
Subrata Dey Sarkar or in the name of this
petitioner and other rleatives of his family. The
petitioner could not give appropriate source of his
income where from he deposited this huge
amount of money jointly with others. It is further
submitted that in course of investigation it
4 Hereinafter referred to as ‘Trial Court’
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revealed that the son of this petitioner has
acquired huge disproportionate property. The
prosecution apprehends that the same is kept by
his son in the name of this petitioner and others.
Therefore, according to the prosecution if the
fixed deposits are allowed to be defreezed the
prosecution will suffer irreparable loss to prove
the case.
I have considered the submissions made by Ld.
Spl. P.P. and Ld.
Advocate appearing on behalf of this petitioner. I
have examined the CD carefully. I also do not
find any CD that the petitioner has bee able to
show the source of his income where from he
fixed the amounts. As the investigation is still in
progress, I am unable to entertain the prayer of
the petitioner.
The petitioner dated 16.03.2023 filed on behalf of
the petitioner, Anil Kr Dey Sarkar to defreeze the
fixed deposits is rejected…”
c) The Home and Hill Affairs Department,
nd
Government of West Bengal, by order dated 22 April
2024, by order of the Hon’ble Governor, granted sanction
for prosecution against the son of the respondent.
d) Upon completion of the investigation, chargesheet
th
was presented on 13 May 2024 which named a total of 4
accused persons: Prabir Kumar Dey Sarkar ( main accused
and son of Respondent herein ); Dipa Dey Sarkar ( wife of
main accused ); Anil Kumar Dey Sarkar ( Respondent
herein ); and Subir Kumar Dey Sarkar ( brother of main
accused and son of Respondent herein ). Some of the
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observations made in the chargesheet against the instant
respondent, inter alia , are:
“…Investigation further revealed that business
income and house property income of Dipa Dey
Sarkar and Anil Kumar Dey Sarkar could not be
substantiated in the instant case….
…The circumstances and evidences collected so
far in the case substantiated that the construction
at BF-11 was solely attributed on Prabir Kumar
Dey Sarkar apart from Anil Kumar Dey Sarkar…
…Besides, huge number of Fixed Deposits in the
name of accused Anil Kumar Dey Sarkar….
…Investigation revealed that there had been
thirty eight nos. of FD accounts lying in the name
of Anil Kumar Dey Sarkar, Dipa Dey Sarkar,
Subrata Dey Sarkar, Papiya Dey Sarkar and
Supriyo Dey Sarkar. Out of thirty eight nos. of
FD accounts, twelve FD accounts were still live
and twenty six nos. of FD accounts were opened
and closed within the check period and benefit of
interest of the same was given to the accused
persons in case of sixteen nos. of FDs, but in case
of ten nos. of FDs, maturity benefit of the same
was not provided to the accused persons because
those matured FDs were re-invested.
Investigation revealed that prior to the creation of
the following FDs were re-invented. Investigation
revealed that prior to the creation of the following
FDs, there was huge deposition of unexplained
cash in the SB accounts of accused persons. Such
type of huge deposition of cash in the SB
accounts of accused of persons was not in
conformity with the legal source of income of
accused person. Moreover, neither Dipa Dey
Sarkar nor Anil Kumar Dey Sarkar was in
position to explain the deposition of huge cash in
their accounts. Therefore, Dipa Dey Sarkar being
house wife and Anil Kumar Dey Sarkar being the
pension holder of scanty amount was dependent
on Prabir Kumar Dey Sarkar. So evidence
collected so far substantiated that Prabir Kumar
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Dey Sarkar played major role in the creation of
the following FDs.”
e) The City Sessions Court, Calcutta took cognizance
th
on the basis of the chargesheet by order dated 14 May
2024 against the above said persons.
IMPUGNED JUDGMENT
4. The order of the Trial Court rejecting the application for
de-freezing of accounts was challenged before the Calcutta
5 th
High Court . The Judgment and Order dated 4 October 2024,
delivered therein setting aside the findings of the learned Trial
Court and directing de-freezing of the accounts, has been
challenged before us by the State. The relevant paras of the
order are:
“…13. In other words, an attachment/freezing of
the bank accounts in connection with an offence
under the 1988 Act is to be made in accordance
with section 18A of the Act. Admittedly the bank
accounts of the petitioner have been frozen by the
opposite party in exercise of power under
section 102 of the Code of Criminal Procedure.
14. Diverse views have been taken by the High
Courts of Madras and Patna with regard to
applicability of section 102 of the Code in seizure
and freezing of bank accounts in a criminal case
registered under the 1988 Act. The Madras High
Court has held in favour of such application
whereas the Patna High Court has held that such
5 CRR No. 4511 of 2023
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seizure and freezing can be made only under
section 18A of the Act and not under section 102
of the Code.
15. The Hon'ble Supreme Court, in the authority
in Ratan Babulal (supra) has examined the
question whether attachment of bank accounts is
sustainable in exercise of powers under section
102 of the Code. The Hon'ble Court has held that
it is not possible to sustain freezing of the bank
accounts taking recourse to section 102 of the
Code as The Prevention of Corruption Act is a
Code by itself. The freezing was accordingly set
aside by the Hon'ble Court leaving open to the
respondents/State to take such recourse in law as
may be permissible.
16. Section 18A of the Act envisages that
attachment, administration of attached property,
execution of order of attachment and confiscation
of money or property procured by means of an
offence under the Act shall be governed by
section 18A. Since admittedly the bank accounts
of the petitioner were frozen by the opposite party
by invoking section 102 of the Code and not by
procedure under section 18A of the Act, the said
freezing cannot be sustained.
17. In view of the fact that the bank accounts in
question were not frozen in accordance with law,
this Court does not find it necessary to deal with
the prayer for de-freezing the same and objection
raised thereto on merits.
18. Accordingly, freezing of the bank accounts of
the petitioner is set aside.
19. The opposite party is directed to de-freeze the
said accounts within seven days from date.
… ”
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RELEVANT PROVISIONS
5. Before proceeding further, it would be important to take
note of the relevant provisions.
Section 13 of the PC Act
“ 13. Criminal misconduct by a public servant.
— 1 [(1) A public servant is said to commit the
offence of criminal misconduct,—
(a) if he dishonestly or fraudulently
misappropriates or otherwise converts for his
own use any property entrusted to him or any
property under his control as a public servant
or allows any other person so to do; or
(b) if he intentionally enriches himself illicitly
during the period of his office.
Explanation 1.—A person shall be presumed
to have intentionally enriched himself illicitly
if he or any person on his behalf, is in
possession of or has, at any time during the
period of his office, been in possession of
pecuniary resources or property
disproportionate to his known sources of
income which the public servant cannot
satisfactorily account for.
Explanation 2.—The expression ‘‘known
sources of income’’ means income received
from any lawful sources.]
(2) Any public servant who commits criminal
misconduct shall be punishable with
imprisonment for a term which shall be not
less than [four years] but which may extend to
[ten years] and shall also be liable to fine.”
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Section 18A of the PC Act
“18A. Provisions of Criminal Law Amendment
Ordinance, 1944 to apply to attachment under
this Act .—(1) Save as otherwise provided under
the Prevention of Money Laundering Act, 2002
(15 of 2003), the provisions of the Criminal Law
Amendment Ordinance, 1944 (Ord. 38 of 1944)
shall, as far as may be, apply to the attachment,
administration of attached property and execution
of order of attachment or confiscation of money
or property procured by means of an offence
under this Act.
(2) For the purposes of this Act, the provisions of
the Criminal Law Amendment Ordinance, 1944
(Ord. 38 of 1944) shall have effect, subject to the
modification that the references to “District
Judge” shall be construed as references to
“Special Judge”.]”
Section 102, CrPC
“102. Power of police officer to seize certain
property.—( 1) Any police officer may seize any
property which may be alleged or suspected to
have been stolen, or which may be found under
circumstances which create suspicion of the
commission of any offence.
(2) Such police officer, if subordinate to the
officer in charge of a police station, shall
forthwith report the seizure to that officer.
(3)Every police officer acting under sub-section
(1) shall forthwith report the seizure to the
Magistrate having jurisdiction and where the
property seized is such that it cannot be
conveniently transported to the Court, [or where
there is difficulty in securing proper
accommodation for the custody of such property,
or where the continued retention of the property
in police custody may not be considered
necessary for the purpose of investigation,] he
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may give custody thereof to any person on his
executing a bond undertaking to produce the
property before the Court as and when required
and to give effect to the further orders of the
Court as to the disposal of the same:
Provided that where the property seized under
sub-section (1) is subject to speedy and natural
decay and if the person entitled to the possession
of such property is unknown or absent and the
value of such property is less than five hundred
rupees, it may forthwith be sold by auction under
the orders of the Superintendent of Police and the
provisions of sections 457 and 458 shall, as
nearly as may be practicable, apply to the net
proceeds of such sale.]”
Section 109, IPC
“ 109. Punishment of abetment if the act
abetted is committed in consequence and when
no express provision is made for its
punishment.
Whoever abets any offence shall, if the act
abetted is committed in consequence of the
abetment, and no express provision is made by
this Code for the punishment of such abetment,
be punished with the punishment provided for the
offence.
Explanation .—An act or offence is said to be
committed in consequence of abetment, when it is
committed in consequence of the instigation, or in
pursuance of the conspiracy, or with the aid
which constitutes the abetment.”
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Sections of the Criminal Law
(Amendment) Ordinance 1944
3. Application for attachment of property
“(1) Where the [State Government or, as the case
may be, the Central Government], has reason to
believe that any person has committed (whether
after the commencement of this Ordinance or not)
any scheduled offence, the [State Government or,
as the case may be, the Central Government]
may, whether or not any Court has taken
cognizance of the offence, authorise the making
of an application to the District Judge within the
local limits of whose jurisdiction the said person
ordinarily resides or carries on business, for the
attachment, under this Ordinance of the money or
other property which the [State Government or, as
the case may be, the Central Government]
believes the said person tohave procured by
means of the offence, or if such money or
property cannot for any reason be attached, or
other property of the said person of value as
nearly as may be equivalent to that of the
aforesaid money or other property.
(2) The provisions of Order XXVII of the First
Schedule to the Code of Civil Procedure, 1908 (5
of 1908), shall apply to proceedings for an order
of attachment under this Ordinance as they apply
to suits by the Government.
(3) An application under sub-section (1) shall be
accompanied by one or more affidavit, stating the
grounds on which the belief that the said person
has committed any scheduled offence is founded,
and the amount of money or value of other
property believed to have been procured by
means of the offence. The application shall also
furnishany information available as to the
location for the time being of any such money or
other property, and shall, if necessary, give
particulars, including the estimated value, of
other property of the said person;the names and
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addresses of any other persons believed to have
or to be likely to claim, any interest or title in the
property of the said person.
4. Ad interim attachment
(1) Upon receipt of an application under section
3, the District Judge shall, unless for reasons to be
recorded in writing he is of the opinion that there
exist no prima facie grounds for believe that the
person in respect of whom the application is
made has committed any scheduled offence or
that he has procured thereby any money or other
property, pass without delay an ad interim order
attaching the money or other property alleged to
have been so procured, or if it transpires that such
money or other property is not available for
attachment, such other property of the said person
of equivalent value as the District Judge may
think fit: Provided that the District Judge may if
he thinks fit before passing such order, and shall
before refusing to pass such order, examine the
person or persons making the affidavit
accompanying the application.
(2) At the same time as he passes an order under
sub-section (1), the District Judge shall issue to
the person whose money or other property is
being attached, a notice, accompanied by copies
of the order, the application and affidavits and of
the evidence, if any, recorded, calling upon him to
show cause on a date to be specified in the notice
why the order of attachment should not be made
absolute.
(3) The District Judge shall also issue,
accompanied by copies of the documents
accompanying the notice under sub-section (2), to
all persons represented to him as having or being
likely to claim, any interest or title in the property
of the person to whom notice is issued under the
said sub-section calling upon each such person to
appear on the same date as specified in the notice
under the said sub-section and make objection if
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he so desires to the attachment of the property or
any portion thereof on the ground that he has an
interest in such property or portion thereof.
(4) Any person claiming an interest in the
attached property or any portion thereof may,
notwithstanding that no notice has been served
upon him under this section, make an objection as
aforesaid to the District Judge at any time before
an order is passed under sub-section (1) or sub-
section (3), as the case may be, of section 5.”
BRIEF SUBMISSIONS
6. We have heard Mr. Shadan Farasat and Mr. Siddharth
Agarwal, learned senior counsel for the State and the
Respondent, respectively. We have also perused the written
submissions. The State’s position is that the High Court’s
6
reliance on Ratan Babulal Lath v. State of Karnataka which
observes that the PC Act is a Code complete in itself, is not
justified, for it does not lay down any authoritative position in
law, binding under Article 141 of the Constitution of India. The
two provisions, i.e., Section 18A of the PC Act and Section 102
Cr.P.C., operate in distinct and/or complementary spheres and
are not mutually exclusive. This seizure of property may or
may not culminate in attachment. The purpose of the former is
to secure the property as evidence during investigation, and
that by itself does not constitute attachment. The power of
attachment/ ad interim attachment given under Sections 3 and 4
6 (2022) 16 SCC 287
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of the Ordinance are not akin to the power of seizure given
under Section 102, Cr.P.C. The latter is a power to be exercised
by the police, which does not require prior judicial approval
and so, is effective in securing evidence, even if it is also
suspected, tainted property, whereas the latter has to be
supported by grounds set out in affidavits, inherently making it
a deliberative process. This means that both powers cannot be
construed as inconsistent with the other or barring the exercise
of the other. It was, as such, submitted that the High Court had
erred in its conclusion.
Per contra , the Respondent’s position is that Ratan
Babulal Lath (supra) does in fact constitute binding precedent
as evidenced by the fact that it has been relied on by this Court
7
in The State of Bihar & Ors. v. Sukhdani Devi Etc. Etc . a s
also by other High Courts . The purpose of the power under
Section 102, CrP.C. is, to serve investigative needs. The
account, having been frozen by the police, does not serve any
such investigative need as the banks have already supplied
detailed statements regarding the same, and the Respondent
has also disclosed the source of funds in his replies to the
authorities. Further, it is the State’s case that the action of
reason has been taken since the funds found in these bank
accounts are disproportionate to the known sources of income.
7 Order dated 14.10.24 in Criminal Appeal Nos.4232-4234 of 2024
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In other words, the same was done, not for any investigative
purpose. In effect, the freezing has been done to prevent the
funds suspected of being disproportionate, from being
withdrawn/transferred, which is the object of attachment. This
8
Court in State of Maharashtra v. Tapas D. Neogy , permitted
the freezing of bank accounts under Section 102, Cr.P.C. In that
case, the Respondent, such as in the present case, was also a
public servant, given that, at the relevant point in time there
was no provision for attachment under the PC Act. This lacuna
was addressed and cured by the 2018 amendment to the PC
Act, and so, the procedure provided therein has to be followed.
9
[Ref: Opto Circuit India Ltd v Axis Bank & Ors ]. Lastly, it
has been submitted that the allegations of disproportionate
assets have been responded to by the Respondent before the
Police, however, the same has not been reflected in the
chargesheet, nor have they been considered in their proper
light, i.e., retirsl benefits, profits from the sale of lands
belonging to his wife, rental income, etc. The said seizure was
not reported to the concerned Magistrate, in accordance with
Section 102(3), Cr.P.C. In the above terms, the conclusion of
the High Court was submitted to be correct in law.
8 (1999) 7 SCC 685
9 (2021) 6 SCC 707
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CONSIDERATION
7. In light of the afore-stated submissions, let us now
consider the question as framed in paragraph 2.
8. Section 102, which appears in Chapter VI of the Cr.P.C.
titled as ‘ Processes to Compel Appearance ’ and more
particularly Part ‘D’ thereof, which is headlined as
‘ Miscellaneous ', uses the word ' seizure ’ and Sections under the
Ordinance, which Section 18A applies to the PC Act, uses the
word ‘ confiscation ’ and ‘ attachment ’. The meaning of these
two words, which obviously would indicate the similarities
and/or differences, acquires importance. Seize means to “ to
10
take something quickly and keep or hold it ” Merriam Webster
defines ‘ seizure ’ as “ the act, action, or process of seizing : the
state of being seized or the taking possession of person or
11
property by legal process ” . Black’s Law Dictionary describes
‘ seize ’ as “To put in possession, invest with fee simple, be
seized of or in, be legal possessor of, or be holder in fee
simple .” Seizure is “ to take possession of forcibly, to grasp, to
12
snatch, or to put in possession . P. Ramanatha Aiyar’s
Advanced Law Lexicon defines ‘ seizure ’ as “ In general
“seizure” is a forcible taking possession. The legal definition

10
11 https://www.merriam-webster.com/dictionary/seizure#:~:text=seizure-,noun,the
%20brain%20(as%20in%20epilepsy)
th
12 Henry Cambell Black, Black’s Law Dictionary, 4 Edition.
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of the word “seizure” is the taking possession of property by
13
an officer under legal process .” Confiscate, then means
“ to officially take private property away from someone, usually
14
by legal authority” Black’s Law Dictionary defines
‘ confiscate ’ as “To appropriate property to the use of the state.
To adjudge property to be forfeited to the public treasury; to
seize and condemn private forfeited property to public use”
Now moving to attachment, the Cambridge Dictionary,
describes attachment, in law, as “the act of arresting a person
for failing to obey the order of a court, or of officially taking
their property because they have failed to pay money that they
15
owe” Black’s Law Dictionary defines attachment as “The act
or process of taking, apprehending, or seizing persons or
property, by virtue of a writ, summons, or other judicial order,
and bringing the same into the custody of the law; used either
for the purpose of bringing a person before the court, of
acquiring jurisdiction over the property seized, to compel an
appearance, to furnish security for debt or costs, or to arrest a
fund in the hands of a third person who may become liable to
pay it over. Also, the writ or other process for the
accomplishment of the purposes above enumerated, this being
the more common use of the word. A remedy ancillary to an
action by which plaintiff is enabled to acquire a lien upon
rd
13 3 Edition, 2009
14
15
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property or effects of defendant for satisfaction of judgment
which plaintiff may obtain.”
Having referred to and understood the meaning of the
terms, we move forward.
9. The text of Section 102, Cr.P.C., has already been
reproduced supra . From a studied analysis of the judgments of
this Court involving this provision, the following
principles/aspects can be highlighted:
9.1 Under this Section, property that is alleged/suspected
to be stolen; is the object of crime; has a direct link to the
commission of the offence, can be seized. [See: M.T.
16
Enrica Lexie v. Doramma ]
9.2 The police have the power to seize passports and bank
accounts under this Section. [See: Tapas D. Neogy
17
(supra), Suresh Nanda v. CBI , Teesta Atul Setalvad v.
18
State of Gujarat .
9.3 Orders of freezing issued under this Section, can only
be in effect to aid investigation. [See: Jermyn Capital
19
LLC v. CBI ] Once the investigation is complete, that
ipso facto , does not entitle the person whose bank
16 (2012) 6 SCC 760
17 (2008) 3 SCC 674
18 (2018) 2 SCC 372
19 (2023) 7 SCC 810
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accounts have been frozen, to have them released. It shall,
however, be open to them to apply to the concerned
authority for the same, and the authority shall consider the
same in accordance with law. [See: Teesta Atul Setalvad
(supra )]
9.4 The police do not have the power to seize any
immovable property. It cannot dispossess someone who is
in possession of the immovable property. [See: Nevada
20
Properties (P) Ltd. v. State of Maharashtra ]
9.5 It is not an enabling provision under which the police
may, to do justice, seize the property and hand it over to
whom they believe to be the rightful owner thereof. [See:
Nevada Properties (P) Ltd. (supra)]
10. In order to understand attachment, i.e., what is
prescribed in the PC Act, let us look at the procedure given in
the Ordinance, as also other legislations where attachment of
property is a consequence, to appreciate, in particular, the
procedure of the Ordinance , as also attachment as employed in
other statutes.
10.1 The Ordinance prescribes the following procedure:

Step 1: Application under Section 3
20 (2019) 20 SCC 119
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State or authorised agency files an
o
application before the District Judge.
o Must be supported by affidavit(s) stating
grounds of belief that the accused committed
a scheduled offence and giving details/value
of property believed to be procured.
o Prior cognizance of the offence by a
criminal court is not required . ( Ravi Sinha v.
State of Jharkhand , Kamal Malik case).
 Step 2: Ad-interim attachment (Section 4)
On receiving the application, the District
o
Judge ordinarily passes an ad-interim order
of attachment without delay.
This order prevents alienation or disposal
o
of the property pending further proceedings.
 Step 3: Notice and Opportunity to Show Cause
o The person whose property is attached is
given notice.
o They must be given a fair opportunity to
show cause why the attachment should not
be made absolute.
 Step 4: Making the Order Absolute (Section 5)
After hearing objections, the Judge may
o
confirm the order and make the attachment
absolute.
o Ownership objections and claims about
the lawful source of acquisition are
considered judicially. ( AIR 2018 SC (Cri)
164 ).
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 Step 5: Execution and Enforcement
The attachment order is carried out “so far
o
as may be practicable” under the Code of
Civil Procedure, 1908.
o This may include seizure, freezing of
assets, or appointment of a receiver.

Step 6: Security in lieu of Attachment (Section
8)
o The affected person may apply to provide
security in place of attachment.
If the Judge finds security sufficient, the
o
attachment can be lifted or not enforced.
 Step 7: Appeal / Revision (Section 11)
Orders making attachment absolute (or
o
other specified orders) are appealable under
Section 11.
o Appeal must be filed before the
appropriate forum within limitation.
10.2 Now, moving to other statutes. The Prevention of
Money Laundering Act, 2002 , dedicates an entire chapter,
i.e., Chapter III, to these processes. Sections 5 and 8
thereof, provide for the procedure to be followed. A
perusal of Section 5 ( Attachment of property involved in
money-laundering ) reveals these sequential steps:
1. Director/Authorised Officer forms 'reason
to believe'.
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2. Provisional Attachment Order issued
(max 180 days).
3. Order + material sent to Adjudicating
Authority (sealed envelope).
4. Within 30 days → Complaint filed before
Adjudicating Authority.
5. Adjudicating Authority holds hearing
(Section 8).
6. Order under Section 8(3): Confirm or
Release attachment.
7. If confirmed → Property continues
attached until trial ends.
8. Final outcome: Confiscation to
Government OR Release.
Section 8, (Adjudication) also prescribes detailed steps:
1. Receipt of complaint (u/s 5(5)) or
application (u/s 17(4) or 18(10)).
2. Adjudicating Authority forms 'reason to
believe' (person committed offence u/s 3 or
possesses proceeds of crime).
3. Notice issued (≥ 30 days) to such person
→ requiring explanation of sources of
income/assets + evidence.
• If property held on behalf of another
→ notice is also served to that person.
• If property is jointly held → notice to
all holders.
4. Adjudicating Authority considers:
(a) Reply to notice,
(b) Hearing of aggrieved person &
Director (or authorised officer),
(c) All relevant material on record.
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5. Order recorded: Finding whether property
is involved in money laundering.
• If claimed by a third party →
opportunity of hearing is given.
6. If property involved → Attachment /
Retention / Freezing is confirmed (u/s 8(3)).
• Continues during investigation (≤ 365
days) or pendency of proceedings.
• Becomes final upon confiscation
order (u/s 8(5)/(7), 58B, 60(2A)).
• Period of stay by the Court is
excluded from 365 days.
7. After confirmation → Director/Authorised
Officer takes possession of property (u/s
8(4)).
8. Trial before Special Court:
• If money laundering proved →
property confiscated to Central
Government (u/s 8(5)).
• If not proved → property released to
entitled person (u/s 8(6)).
• If trial cannot be concluded
(death/proclaimed offender/other reason)
→ Court decides confiscation or release
(u/s 8(7)).
9. Restoration to Claimants:
• If property confiscated → Special
Court may restore to the claimant with
legitimate interest who suffered
quantifiable loss (u/s 8(8)).
• Conditions: claimant acted in good
faith, took precautions, not involved in
laundering.
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• Court may even consider restoration
during trial (Proviso to s. 8(8)).
10.3 The Income Tax Act, 1961 , provides for provisional
attachment to protect the interests of the revenue. A
perusal of Section 281B makes clear the following steps:
1. Proceeding pending for assessment/
reassessment / escaped assessment;
Assessing Officer (AO) forms an opinion
that provisional attachment is necessary to
protect revenue.
2. AO obtains previous approval from the
relevant higher authority (Principal Chief
Commissioner/Chief Commissioner;
Principal Commissioner/Commissioner;
Principal Director General/Director General;
Principal Director/Director).
3. On approval, AO issues a written order
provisionally attaching the assessee's
property in the manner provided in the
Second Schedule.
4. Initial period of provisional attachment
is six months from the date of the order.
5. The higher authority may extend the
provisional attachment (reasons recorded),
but total extension cannot exceed two years
or sixty days after the date of
assessment/reassessment, whichever is later.
6. Assessee may furnish a bank guarantee
from a scheduled bank for an amount not less
than the fair market value (FMV) of the
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attached property. If accepted, the AO shall
revoke the attachment.
7. AO may refer the matter to the
Valuation Officer (s.142A) to determine
FMV — report due within 30 days.
8. AO must revoke the provisional
attachment within 45 days of receiving the
guarantee if a Valuation Officer reference
was made; otherwise, within 15 days.
9. If a notice of demand specifying a sum
is served and the assessee fails to pay, the
AO may invoke the bank guarantee (wholly
or partly) to recover the amount.
10. The AO shall invoke the guarantee if
the assessee fails to renew the guarantee 15
days before its expiry.
11. Amount realized by invoking the
guarantee is adjusted against existing
demand; any balance is deposited in the
Personal Deposit Account (PDA) of the
Principal Commissioner/Commissioner.
12. If AO is satisfied that the guarantee is
no longer required, the AO shall release the
guarantee forthwith.
11. A detailed analysis of the provisions concerning
attachment given in the Ordinance as also the other Acts, the
steps of which have been detailed above, is an effort to
juxtapose the procedure laid down in different statutes, showing
that attachment is a consequence which is given effect to after
due application of mind and compliance with procedure. It is not
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a decision that can be taken on the spur of the moment. It is not
a decision that can be taken by a single person. The situation
prevalent on the ground and in response to the situation as it
may be developing, has to be considered. Instead, the law
provides detailed steps and procedures to be complied with
before someone's property can be attached. Now, contrasting
this with the power contained under Section 102 Cr.P.C., it is
clear from the text reproduced supra that it allows ‘ any police
officer ’ to ‘ seize any property ’, and in order to balance the
scales, requires that once such a seizure is done, information
thereof has been sent forthwith to the concerned Magistrate.
This requirement of communication to the Magistrate forthwith
received consideration in a recent judgment of this Court in
21
Shento Varghese v. Julfikar Husen , the conclusions of which
are as below:
“ 26. From the discussion made above, it would
emerge that the expression “ forthwith ” means “ as
soon as may be ”, “ with reasonable speed and
expedition ”, “ with a sense of urgency ”, and
“ without any unnecessary delay ”. In other words,
it would mean as soon as possible, judged in the
context of the object sought to be achieved or
accomplished.
27. We are of the considered view that the said
expression must receive a reasonable construction
and in giving such construction, regard must be
had to the nature of the act or thing to be
performed and the prevailing circumstances of the
21 (2024) 7 SCC 23
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case. When it is not the mandate of the law that
the act should be done within a fixed time, it
would mean that the act must be done within a
reasonable time. It all depends upon the
circumstances that may unfold in a given case and
there cannot be a straitjacket formula prescribed
in this regard. In that sense, the interpretation of
the word “ forthwith ” would depend upon the
terrain in which it travels and would take its
colour depending upon the prevailing
circumstances which can be variable.
28. Therefore, in deciding whether the police
officer has properly discharged his obligation
under Section 102(3)CrPC, the Magistrate would
have to, firstly, examine whether the seizure was
reported forthwith. In doing so, it ought to have
regard to the interpretation of the expression,
“ forthwith ” as discussed above. If it finds that the
report was not sent forthwith, then it must
examine whether there is any explanation offered
in support of the delay. If the Magistrate finds
that the delay has been properly explained, it
would leave the matter at that. However, if it
finds that there is no reasonable explanation for
the delay or that the official has acted with
deliberate disregard/wanton negligence, then it
may direct for appropriate departmental action to
be initiated against such erring official. We once
again reiterate that the act of seizure would not
get vitiated by virtue of such delay, as discussed
in detail hereinabove.”
While it is undoubted that in ordinary circumstances,
information is to be sent to the Magistrate, in certain
circumstances, if that is not done, even then the seizure will not
be vitiated. This indicates the width of the power granted to the
police with the sole aim of smooth facilitation of the
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investigation. As evidenced by the procedure given in the
Ordinance, it is sequential and has to be compliant with
principles of natural justice, for it to survive scrutiny. It is
necessarily time consuming and deliberative. The difference
between the two processes is, therefore, clearly exhibited. In
essence, we hold that the power of seizure and attachment are
separate and distinct, even if, to the naked eye it may so appear,
that the effect is same/similar which is, that the property is taken
into custody of, by the authority, either investigative or judicial.
Consequentially, the conclusion to be drawn is that the powers
under Section 18A of the PC Act and Section 102, CrP.C. are not
mutually exclusive. Mr Farasat’s submission to this extent
merits acceptance and is so done accordingly.
12. The next submission to be weighed is whether Ratan
Babulal Lath (supra) constitutes a binding precedent in as much
as it declares the PC Act to be a ‘code in itself’ , thereby ruling
out the application of the Cr.P.C. or any other law to any
proceedings which emanates therefrom. There have been several
instances where this Court has declared a particular statute to be
a self-contained Code or, a Code in itself. Reference to some of
these instances is as follows:
12.1 The Industrial Disputes Act, 1947, which
N.L.Untwalia J., writing for this Court in Premier
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22
Automobiles Ltd. v. Kamlekar Shantaram Wadke ,
observed to be an act providing for “investigation and
settlement of industrial disputes, which means
adjudication of such disputes …" is one such example. In
para 8 of this judgment, the learned Judge gives a
glimpse of the width and expanse of the powers provided
therein. Krishna Iyer J., in Rohtas Industries Ltd. v.
23
Rohtas Industries Staff Union , called it a Code for it
“… it speaks and the enforcement of rights created
thereby can only be through the procedure laid down
therein. Neither the civil court nor any other tribunal or
body can award relief.” What is seen from the Act is that
its references to other procedural laws are only limited to
certain extents, which have been clearly laid down for
example, Section 11 thereof provides that every Board,
Court constituted thereunder shall have the powers under
the Code of Civil Procedure, 1908, insofar as the four
aspects mentioned therein are concerned.
24
12.2 The Insolvency and Bankruptcy Code, 2016 is
another example. The name itself professes that this

legislation is a Code. [See: Ebix Singapore (P) Ltd. v.
25
Educomp Solutions Ltd. (CoC) ] Various judgments
22 (1976) 1 SCC 496
23 (1976) 2 SCC 82
24 Hereinafter referred to as ‘IBC’
25 (2022) 2 SCC 401
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since its enactment have underscored its self-contained
nature. In Pratap Technocrats (P) Ltd. v. Reliance
26
Infratel Ltd. (Monitoring Committee) , this Court
expressly rejected the importation of the guarantees of
non-arbitrariness and fair procedure into the Court
holding that the Code defines in itself what is fair and
equitable treatment “constituting a comprehensive
framework”. It was also noted that the same is compliant
with the “ Legislative Guide on Insolvency Law ” given
by UNCITRAL. In E.S. Krishnamurthy v. Bharath Hi-
27
Tecch Builders (P) Ltd . , it was observed that the IBC
“confers jurisdiction” and “structures, channelises and
circumscribes the ambit of such jurisdiction ”. V.
28
Nagarajan v. SKS Ispat & Power Ltd. , held that the
Code overrides its inconsistencies as they may be with
other laws.
12.3 Two further examples. The Land Acquisition Act,
29
1894, was held in State of Bihar v. Dhirendra Kumar ,
to be a complete code in itself since it details the
complete procedure to be followed by the State when it
exercises the power of eminent domain. The
Securitisation and Reconstruction of Financial Assets
26 (2021) 10 SCC 623
27 (2022) 3 SCC 161
28 (2022) 2 SCC 244
29 (1995) 4 SCC 229
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and Enforcement of Security Interest Act, 2002 has been
termed as a code in itself since it provides the procedure
to be followed by a secured creditor and also the
aggrieved party including borrower. [See : Raj Kumar
30
Shivhare v. Directorate of Enforcement ]
13. Analysing the judgments referred to immediately
hereinabove, the following factors can be deduced as essentials
of a code being self-contained or complete in all respects:
I. A Code should be comprehensive, dealing with
all aspects arising directly out of or, ancillary to, the
main issue addressed in the statute.
II. It should lay down, clearly, when dealing with
criminal laws, the offence, its punishment, and when
dealing with civil laws, the rights and liabilities of the
parties.
III. Addressing the above, the procedure provided
therein should be all-encompassing. This includes, for
instance, adjudication of grievances, and appeals from
findings recorded by authorities. In other words, the
reliance of the statute upon general laws with reference
to the offences/ punishments or, rights/liabilities should
be limited as far as possible.
30 (2010) 4 SCC 772
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14. With utmost respect to the learned Judges and the
conclusion in Ratan Babulal Lath (supra), we would state that
in the absence of a detailed discussion made of the scheme of
the Act, its provisions and its interactions with other substantive
or procedural laws, as far as they may be applicable, it cannot be
stated that the conclusion arrived at therein constitutes ratio
decidendi and, therefore, would be binding on all Courts as per
the effect of Article 141 of the Constitution of India. We draw
support for our conclusion from a judgment of this Court in
31
MCD v. Gurnam Kaur :
“11. Pronouncements of law, which are not part
of the ratio decidendi are classed as obiter dicta
and are not authoritative. With all respect to the
learned Judge who passed the order in Jamna
Das case [ Writ Petitions Nos. 981-82 of 1984]
and to the learned Judge who agreed with him,
we cannot concede that this Court is bound to
follow it. It was delivered without argument,
without reference to the relevant provisions of the
Act conferring express power on the Municipal
Corporation to direct removal of encroachments
from any public place like pavements or public
streets, and without any citation of authority.
Accordingly, we do not propose to uphold the
decision of the High Court because, it seems to us
that it is wrong in principle and cannot be
justified by the terms of the relevant provisions
…So far as the order shows, no argument was
addressed to the court on the question whether or
not any direction could properly be made
compelling the Municipal Corporation to
construct a stall at the pitching site of a pavement
squatter. Professor P.J. Fitzgerald, editor of
31 (1989) 1 SCC 101
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the Salmond on Jurisprudence , 12th Edn.
explains the concept of sub silentio at p. 153 in
these words:
A decision passes sub silentio , in the technical
sense that has come to be attached to that phrase,
when the particular point of law involved in the
decision is not perceived by the court or present
to its mind. The court may consciously decide in
favour of one party because of point A, which it
considers and pronounces upon. It may be shown,
however, that logically the court should not have
decided in favour of the particular party unless it
also decided point B in his favour; but point B
was not argued or considered by the court. In
such circumstances, although point B was
logically involved in the facts and although the
case had a specific outcome, the decision is not
an authority on point B. Point B is said to pass
sub silentio.”
(Emphasis supplied)
In the same vein, a reference can also be made to Jayant
32
Verma v. Union of India wherein R.F Nariman J, writing for
the Court, referred to the dissenting opinion of A.P. Sen, J.
33
who set out in Dalbir Singh v. State of Punjab what is the
ratio decidendi of a judgment, in the following terms:
“ 22 . … According to the well-settled theory of
precedents every decision contains three basic
ingredients:
‘( i ) findings of material facts, direct and inferential.
An inferential finding of facts is the inference which
the Judge draws from the direct or perceptible facts;
( ii ) statements of the principles of law applicable to
the legal problems disclosed by the facts; and
32 (2018) 4 SCC 743
33 (1979) 3 SCC 745
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( iii ) judgment based on the combined effect of ( i )
and ( ii ) above.”
15. In our considered view, Ratan Babulal Lath (supra) does
not constitute binding precedent for want of (ii) and (iii) since it
does not discuss the facts of the matter. Granted, inference can
be made as to the facts of the case, and the background in which
the order came to be passed. However, Courts ought not to be
expected to follow judgments and orders of this Court as
binding precedents when, the facts, in light of which the
conclusion arrived at, are not properly disclosed and discussed,
for law is not always applicable as the black letter of the law and
is instead applied to the facts of each case. It may be clarified
here that our observations regarding the PC Act do not hold,
either way, as to its status as a code. They are only confined to
the precedential value of Ratan Babulal Lath (supra).
CONCLUSION
16. Having decided the points of law, as above, let us now
turn to the facts of this case. The respondent is the father of the
main accused. Although he had submitted certain responses to
the source of the money present in his accounts, the same was
not found to be a justifiable explanation by the investigating
authorities and as such, seizure was effected. The release of the
funds so seized was rejected by the Trial Court but later
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accepted by the High Court on the premise that the same had
been carried out on an erroneous interpretation of the law. We
do not agree. We have held as above that Section 102, Cr.P.C.,
being distinct from the powers and procedures as detailed under
Section 18-A of the PC Act, would apply to the case. Generally,
with the setting aside of the order of the High Court, the matter
would have ended there, but since the investigation has been
completed and the final report already stands presented in the
case, the freezing of the accounts, of which fixed deposits are
undoubtedly a part, may or may not be required. Considering
that in light of the principles enunciated in para 9 of this
judgment, we may observe that as per this Court’s order issuing
th
notice dated 27 January 2025, we had stayed the operation of
th
the impugned judgment which was dated 4 October 2024.
This may result into two situations, viz., (a) where the
amount stands released; and (b) is yet to be released. If the
situation is the former, then the respondent herein would either
re-deposit the amount or furnish tangible security / bank
guarantee of the like amount. This shall be done positively
within three weeks from today. Rights of the parties emanating
from the statute whether in situation (a) or (b) for follow up
action are left open to be adjudicated in appropriate proceedings
before the appropriate court.
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17. The appeal is allowed as aforesaid.
Pending application(s), if any, shall be disposed of.
…………….......................………J.
(SANJAY KAROL)
…….......................………….……J.
(PRASHANT KUMAR MISHRA)
New Delhi;
December 10, 2025
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