A complaint was filed under Section 50 of the Black Money Act, 2015, before a Magistrate in Panaji against an assessee who was a resident of Mumbai. The Magistrate took cognizance and issued summons. The High Court held that since the accused resided beyond the territorial jurisdiction of the Magistrate, compliance with the provisions of Section 202(1) of the Criminal Procedure Code, 1973, which mandates an inquiry before issuing process, was obligatory. As there was no material to show that the Magistrate had complied with this mandatory requirement, the order issuing summons was unsustainable.

Consequently, the High Court quashed the order and remanded the matter to the Magistrate for fresh consideration after complying with the procedure laid down in Section 202(1) of the Criminal Procedure Code, 1973.