‘No coercive steps’ means no arrest, not a stay on probe: Karnataka High Court

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The Karnataka High Court has explained the difference between two commonly used expressions in interim orders passed by courts: “coercive steps” and “precipitative action”.Justice M Nagaprasanna said in his order dated July 7, “An order directing ‘no coercive steps’ or ‘no coercive measures’ would only mean that the accused or any person in favour of whom such order is passed shall not be arrested.”The judge further explained that an order barring “any precipitative action” suspends the entire investigation process.The high court was hearing an appeal filed by the Enforcement Directorate (ED) against an earlier interim order that stayed an attachment order passed in a cheating case.Justice Nagaprasanna said, “A careful reading of the order dated 10.03.2026, however, unmistakably demonstrates that the foundation upon which the interim order came to rest was, with great respect, factually erroneous. This Court never directed the respondent not to take “precipitative action”. The words employed by this Court were precise, deliberate and unambiguous—”not to take any coercive steps”.In March, the high court granted the interim relief to Pavitra Ramanujam—who is accused of cheating investors in Generis Consulting Services Private Limited out of Rs 6 crore—after directing her to cooperate with the investigation. ED later filed a prosecution complaint, and the adjudicating authority passed the attachment order on March 28.Pavitra challenged the attachment order before the high court on April 29, and a bench presided over by Justice R Natraj stayed it.Story continues below this adAlso Read | Court refuses to cancel ED case against people who tried to sell banned notesAdvocate Madhu N Rao, appearing for ED, argued that the high court had in March declined to stay the investigative process and struck a delicate balance between the investigation and Pavitra’s personal liberty by directing the agency not to take any coercive steps.‘No precipitative action means suspension of entire process’Observing that courts are presumed to choose their words with care, and every expression employed in a judicial order carries a distinct legal consequence, the bench said, “A direction restraining precipitative action has the effect of arresting the onward march of statutory proceedings, freezing the hands of the authority from taking any consequential action, until the Court directs otherwise. Such an order virtually suspends the statutory process in its entirety. A direction restraining coercive steps is a judicial assurance against coercion directed at the person, not against the statutory process. It prevents arrest; it does not prohibit investigation.”The high court held that the interim order was never an injunction against the continuation of the statutory process under the Prevention of Money Laundering Act.The high court thus vacated the interim stay on the provisional attachment order and directed Pavitra to appear before the adjudicating authority and raise her objections.