Act to have overriding effect

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. Nikesh Tarachand Shah vs Union of India Ministry of Finance through Secretary Revenue

   Supreme Court of India 23 Nov 2017 Binding (Supreme Court) Reportable

   Court's Decision & Legal Precedent

   Section 45(1) of the Prevention of Money Laundering Act, 2002, insofar as it imposes two further conditions for release on bail (that Public Prosecutor be given opportunity to oppose and that Court be satisfied of reasonable grounds for believing accused not guilty and not likely to commit offence while on bail), is unconstitutional as it violates Articles 14 and 21 of the Constitution of India because: (1) the classification based on sentencing of predicate offences has no rational nexus to the object of the PMLA Act which is to attach proceeds of crime and bring money laundering offenders to book; (2) the twin conditions relate to guilt of predicate offence, not money laundering offence, creating a disconnect; (3) the provision produces manifestly arbitrary results depending on whether predicate offence is in Part A or Part B of Schedule or whether person is charged with money laundering alone; (4) the provision inverts the presumption of innocence which is fundamental to criminal law; (5) the procedure is not fair, just and reasonable as required by Article 21; and (6) the provision lacks a compelling state interest justifying such drastic inroads into personal liberty.

   On this section: PMLA provisions override other laws; cited to show Parliament's intent to create special regime

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.