Delhi High Court Allows ED To Withdraw PMT Machines Appeal As It Turned Academic After Insolvency Resolution

The Delhi High Court has permitted the Enforcement Directorate to withdraw its appeal against PMT Machines Limited after holding that the challenge had become academic following the company's resolution under the insolvency law and the Supreme Court's decision to quash the related criminal proceedings.

A Division Bench of Justice Navin Chawla and Justice Ravinder Dudeja said the appeal no longer required adjudication on merits.

“In view of the subsequent developments, the present appeal has, in fact, been rendered academic in nature,” the court observed.

The appeal arose from a 2019 order of the Appellate Tribunal under the Prevention of Money Laundering Act, which had set aside the provisional attachment of certain properties belonging to PMT Machines Limited. The tribunal had held that the properties, which were mortgaged to banks, were not purchased from proceeds of crime and had been acquired prior to the period under investigation. The Enforcement Directorate had challenged that finding before the High Court.

During the pendency of the appeal, the National Company Law Tribunal in Mumbai approved a resolution plan for PMT Machines in June 2022. Matters moved further in November 2025, when the Supreme Court quashed the criminal proceedings connected to the case after recording a full and final settlement with the lender banks and the investigating agencies.

Following the Supreme Court's order, the Enforcement Directorate sought to withdraw its appeal. It requested that the attached properties be treated as restitution under Section 8(8) of the Prevention of Money Laundering Act.

The High Court, while leaving the question of law open, directed that the properties be treated as restored under the Act and that possession be handed over to the successful resolution applicant. With this direction, the appeal and the connected applications were disposed of.

For Appellant: Special Counsel Zoheb Hossain, Panel Counsel Kartik Sabharwal, Advocates Vivek Gurnani and Satyam

For Respondent: Advocate Rajesh Rattan