SC To Examine if ED Can File Writ Petitions as a “Juristic Person”

New Delhi: The Supreme Court on Tuesday agreed to examine whether the Enforcement Directorate could file a writ petition before High Courts under Article 226 of the Constitution for enforcement of its rights as a “juristic person”. A juristic person is a non-human legal entity recognised by law and entitled to rights and duties in the same way as a human being. Article 226 refers to the power of High Courts to issue certain writs.

A two-judge bench of Justices Dipankar Datta and Satish Chandra Sharma issued notice to the agency on appeals filed by the Kerala and Tamil Nadu governments challenging an order passed by the Kerala High Court which upheld the ED's locus to file writ petitions under Article 226.

In its order passed on September 26, last year, the Kerala High Court had upheld a single judge order staying the judicial inquiry set up by the Kerala government into the ED probe of the 2020 gold smuggling through diplomatic channel. The judicial inquiry commission was set up following allegations that ED officials coerced the accused to implicate political leaders, including the CM, in the gold smuggling case.

The High Court had dismissed an appeal filed by the Kerala government challenging the interim stay order of the single-judge bench. Observing that the appeal lacked merit, the High Court held that the single-judge bench had committed no error in entertaining the ED's petition and staying the inquiry.

The case originated from a May 7, 2021, state government notification ordering a judicial inquiry under the Commission of Inquiry Act, 1952, against ED officials accused of coercing the accused to implicate political leaders.

Former high court judge Justice V.K. Mohanan was appointed to head the inquiry commission. It was tasked with examining evidence, including an audio clip attributed to accused Swapna Suresh and a letter by accused Sandeep Nair, both alleging coercion by ED officers. The ED deputy director moved the High Court, questioning the state's authority to order an inquiry against a Central investigating agency.

The single bench held that the ED had locus standi and granted an interim stay of the state government notification on August 11, 2021, prompting the state government to file an appeal.