R.Sugumaran v. Assistant Director

ORDER (Order of the Court was made by the Hon'ble Chief Justice) The present criminal original petition has been preferred by the petitioner under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), seeking a direction to the learned VIII Principal Special Court for CBI Cases, Chennai (Designated Special Court under the Prevention of Money Laundering Act, 2002) to expeditiously adjudicate and dispose of Crl.M.P. No.101 of 2026 in Spl.C.C. No.1 of 2021.

¶2Learned counsel appearing for the petitioner contends that the petitioner is a Liquidator bound by the statutory, time-bound matrix of the Insolvency and Bankruptcy Code, 2016 (IBC). By virtue of an order dated 02.03.2026 passed by the National Company Law Tribunal (NCLT), Chennai Bench, the liquidation period of the Corporate Debtor stands extended only up to

27.08.2026.

2.2. It is further submitted that the prompt liquidation and asset monetization of the Corporate Debtor are completely deadlocked as the subject properties remain under prolonged attachment. The petitioner emphasizes that despite multiple listings, the Special Court is yet to frame charges in the main case (Spl.C.C.No.1 of 2021) or dispose of the restitution application in Crl.M.P.No.101 of 2026. He also submitted that the impending statutory deadline leaves the liquidation process in severe jeopardy, thereby causing irreversible prejudice to the pool of waiting creditors.

¶3Per contra, learned counsel appearing on behalf of the respondent refutes the allegations of systemic delay. It is submitted that the matter involves intricate transactions and that extensive arguments are being advanced before the learned Special Court on a week-to-week basis. He further submitted that the matter is sub judice before the Special Court and no direction as sought is warranted.

¶4Having heard the learned counsel on either side and perused the materials available on record, this court is of the considered view that a constitutional court must exercise its inherent powers under Section 528 of the BNSS with circumspection and must refrain from issuing specific timelines to trial courts when such courts are already actively engaged in hearing a matter.

¶5While this court is cognizant of the strict, time-bound mandates governing liquidation under the IBC, it cannot lose sight of the fact that the Special Court is currently seized of the matter. A direction for an expedited timeline as prayed for cannot be granted. This Court is certain that the learned Special Court is mindful of the competing statutory timelines, including those governing the liquidation estate. All the pleas, grievances, and exigencies articulated by the petitioner regarding the fast-approaching liquidation expiry date can very well be brought to the immediate notice of the learned Special Court itself.

¶6In view of the aforesaid observations, this petition stands dismissed. It is open to the petitioner to move an appropriate application before the learned VIII Principal Special Court for CBI Cases, Chennai, highlighting the timeline fixed by the NCLT, which the Special Court may consider on its own merits and in accordance with law. (SUSHRUT ARVIND DHARMADHIKARI,CJ) (G.ARUL MURUGAN,J)

08.07.2026 Index : : sasi To: The Assistant Director Directorate of Enforcement Chennai Zonal Office-I, 2nd, 5th and 6th Floors, BSNL Administrative Building, Kushkumar Road, Nungambakkam, Chennai-600 034. THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,J.

(sasi) CRL.O.P.No.17195 of 2026

08.07.2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.07.2026 CORAM : THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN CRL.O.P.No.17195 of 2026 R.Sugumaran S/o. Shri (Late) S.O. Rengasamy, Liquidator of Briar Knoll Mills Pvt Ltd, 9A, Block 2, Ceebros Shyamala Garden, 136, Arcot Road, Saligramam, Chennai-600 093. Petitioner(s) Vs The Assistant Director Directorate of Enforcement Chennai Zonal Office-I, 2nd, 5th and 6th Floors, BSNL Administrative Building, Kushkumar Road, Nungambakkam, Chennai-600 034. Respondent(s) PRAYER : Petition filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 to issue a direction to the learned VIII Principal Special Court for CBI Cases, Chennai (Designated Special Court under the prevention of Money Laundering Act 2002), to frame charges and expeditiously dispose of Crl. M.P.No.101 of 2026 in Spl CC No.1 of 2021, in a time-bound manner. For Petitioner(s): Mr.Pranava Charan For Respondent(s):Mr.Rajnish Pathiyil Spl. Public Prosecutor assissted by Mr.Minna Jaasir