The matter of confiscation of properties and issue notice to Official Liquidator to appear & represent Company under winding up would arise for consideration only once the declaration as sought by Enforcement Directorate u/s 4 of the Fugitive Economic Offenders Act, 2018 is allowed – Mehul Choksi Vs. State of Maharashtra – Bombay High Court
October 5, 2023
Hon’ble High Court observed that:
(i) As per Section 12 of the Fugitive Economic Offenders Act, 2018, there are two stages as provided under sub-sections (1) & (2). In the first stage, provided under sub-section (1), a declaration will have to be made about the individual being a fugitive economic offender; and the second stage provided under sub-section (2) is for confiscation of the properties.
(ii) Therefore, the application filed for issuing notice to the Official Liquidator to appear and represent the company Gili India Ltd. cannot be considered at this stage as the matter as to confiscation was not to be considered first as per the order dated 31.1.2019 and it can be taken up at an appropriate stage subject to result of the declaration sought under Section 4 read with Section 12 of the FEO Act.
(iii) The Court rightly decided to complete the stage one under Section 12(1) of the FEO Act. Only after that stage is crossed, the question about necessity to issue notice to the other persons would arise.
