Faizal is a fugitive economic offender and has left India to avoid legal proceedings against him. Discuss the provisions relating to power of civil/tribunal to disallow civil claims and attach his property.

CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · December 2023
Faizal is a fugitive economic offender and has left India to avoid legal proceedings against him. Discuss the provisions relating to power of civil/tribunal to disallow civil claims and attach his property.

Answer & Explanation:

Power to Disallow Civil Claims: Section 14 of the Fugitive Economic Offenders Act, 2018 deals with power to disallow civil claims. It provides that notwithstanding anything contained in any other law for the time being in force: On a declaration of an individual as a fugitive economic offender, any court or tribunal in India in any civil proceeding before it, may disallow such individual from putting forward or defending any civil claims. Any Court or Tribunal in India in any civil proceeding before it, may disallow any company or limited liability partnership from putting forward or defending any civil claim, if an individual filing the claim on behalf of the company or the limited liability partnership or any promoter or key managerial personnel or majority shareholder of the company or an individual having a controlling interest in the limited liability partnership has been declared as a fugitive economic offender. Attachment of Property: Section 5 of the Fugitive Economic Offenders Act, 2018 empowers the Director or any other officer authorised by the Director, not below the rank of Deputy Director, to attach any property with the permission of the Special Court, by an order in writing in prescribed manner. This can be done at any time prior to the filing of the application to the Special Court if: There is a reason to believe that the property is proceeds of crime, or is a property or benami property owned by an individual who is a fugitive economic offender; and Which is being or is likely to be dealt with in a manner which may result in the property being unavailable for confiscation. The Director or any other officer who provisionally attaches any property shall within a period of thirty days from the date of such attachment file an application before the Special Court. The attachment of any property shall continue for a period of one hundred and eighty days from the date of order of such attachment or such other period as may be extended by the special court before the expiry of such period.

Topics: Fugitive Economic Offenders Act, 2018

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