Sections 41-42 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 41 closes the door of the civil court on matters that the Director, the Adjudicating Authority or the Appellate Tribunal is empowered to decide, and stops any court or authority from granting an injunction against action under the Act. Section 42 then opens one door: a person aggrieved by a decision or order of the Appellate Tribunal may appeal to the High Court within sixty days.
This article reads both sections as per the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments and notifications should be checked before you rely on it.
No civil court can entertain a suit or proceeding on a matter the Director, an Adjudicating Authority or the Appellate Tribunal is empowered to determine, and no injunction can be granted against action under the Act (section 41). A person aggrieved by an order of the Appellate Tribunal may appeal to the High Court on a question of law or fact within sixty days of communication of the order to him, with a further period not exceeding sixty days if the High Court finds sufficient cause (section 42). Which High Court hears the appeal is fixed by the Explanation to section 42.
Where sections 41 and 42 sit
Both sections close Chapter VI of the Act, the chapter on the Appellate Tribunal. The chain they complete is this: the Adjudicating Authority decides under section 8 (see our article on section 8); a person aggrieved appeals to the Appellate Tribunal under section 26 (see our article on section 26); and a person aggrieved by the Tribunal's order goes to the High Court under section 42. Section 41 sits beside this chain and says which courts stay out of it.
If an attachment, a retention order or a penalty is what brought you here, the practical question is always the same: which forum, and by when. Our legal dispute resolution team can map that for a specific order. For the wider picture of the forum, read the site guide on the Appellate Tribunal under PMLA.
Section 41: civil court not to have jurisdiction
Section 41 has two limbs, joined by "and".
First limb: no civil court jurisdiction. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Director, an Adjudicating Authority or the Appellate Tribunal is empowered by or under this Act to determine. The test is not whether the plaintiff calls the claim a civil dispute; it is whether the Act empowers one of the three named bodies to determine the matter. The section prints no list of such matters, so the answer has to be traced to the section that gives the power. For example, section 8 gives the Adjudicating Authority its task on attachment, and section 26 gives the Appellate Tribunal its task on appeals.
Second limb: no injunction. No injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. Two features of the printed words matter:
- The bar covers "any court or other authority", which is wider than "civil court" in the first limb.
- It covers action already taken and action "to be taken", so it reaches threatened action as well as completed action.
The section does not say that action under the Act can never be questioned. It leaves the question to the forum the Act itself provides, and section 42 is the last step of that route.
How section 41 relates to section 67
Section 67 also closes the civil court, in different words: no suit may be brought in a civil court to set aside or modify any proceeding taken or order made under the Act, and no prosecution, suit or other proceeding lies against the Government or an officer for anything done or intended to be done in good faith. The two sections are read together in our article on sections 65, 67 to 69 and 71.
Section 42: appeal to the High Court
The section prints the following, element by element.
| Element | What section 42 prints |
|---|---|
| Who may appeal | Any person aggrieved by any decision or order of the Appellate Tribunal |
| Forum | The High Court |
| Time | Within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him |
| Grounds | Any question of law or fact arising out of such order |
| Extension | The High Court may allow filing within a further period not exceeding sixty days, if satisfied that the appellant was prevented by sufficient cause |
Three points deserve attention.
1. The clock runs from communication to the appellant. The words are "from the date of communication of the decision or order of the Appellate Tribunal to him". The date the Tribunal pronounces is not the date the section names. Keep proof of when and how the order reached you.
2. Question of law or fact. The text says "any question of law or fact arising out of such order". It does not limit the appeal to law. This article states only what is printed and says nothing about how any court has treated these words.
3. The extension is for the High Court to grant. The proviso is conditional: the High Court must be satisfied that the appellant was prevented by sufficient cause from filing within sixty days. The extension is a further period not exceeding sixty days. Add the two periods and the longest window the section contemplates is a hundred and twenty days from communication, but that total is arithmetic, not a figure the section prints. Do not plan to use it; an appeal filed in the first sixty days needs no explanation.
Which High Court: the Explanation
For the purposes of section 42, "High Court" means:
| Case | The High Court |
|---|---|
| (i) The aggrieved party is any party | The High Court within whose jurisdiction the aggrieved party ordinarily resides or carries on business or personally works for gain |
| (ii) The Central Government is the aggrieved party | The High Court within whose jurisdiction the respondent, or, where there is more than one respondent, any of the respondents, ordinarily resides or carries on business or personally works for gain |
Clause (ii) means that when the Central Government appeals, it is the respondent's residence, business or place of work that decides the forum. Where there are several respondents, it is enough that any one of them fits.
What the text does not say
- It prints no form, fee, memorandum or filing procedure for the High Court appeal. The list of matters on which rules may be made in section 73(2), as printed in this text, has a clause on the form and fee of the appeal to the Appellate Tribunal under section 26(3), but no clause on an appeal under section 42. Rules and the procedure of the High Court concerned should be checked.
- It does not say that filing an appeal stops the order from taking effect. Section 42 is silent on stay.
- It does not mention the criminal side. Appeal and revision in criminal cases before a Special Court are in section 47 (see our article on sections 43 and 46-47).
Death or insolvency of the person
Section 72(2) provides that if the person entitled to appeal to the High Court dies or is adjudicated an insolvent, the legal representatives, the official assignee or the official receiver may prefer or continue the appeal, and section 42 applies. It is covered in our article on sections 72 and 72A.
A worked example
Hardik Traders (invented) owns a warehouse that the Adjudicating Authority confirmed as attached, and its appeal to the Appellate Tribunal under section 26 is dismissed. The order reaches the company's registered office on 3 March by courier. The sixty days run from that date of communication. The company's directors reside and the company carries on business in one State, so under clause (i) of the Explanation the High Court for that State is the forum.
Separately, the company's solicitor had earlier asked a civil court for an injunction against the attachment. Section 41 stands in the way: attachment is action under a power conferred by the Act, and the bar applies to any court or other authority. The route is through the Adjudicating Authority, the Tribunal and then section 42.
If the company missed the sixty days because the order was delivered to a closed office and reached the directors late, the proviso is the only help: the High Court may permit a further period not exceeding sixty days if satisfied of sufficient cause.
Other laws are not named in sections 41 and 42, but periods of limitation can also arise under general law. Check the current law and our note on limitation periods for suits and appeals alongside the periods printed here.
Need help with an appeal or a civil court bar question?
If you hold an order of the Appellate Tribunal and are counting days, or a notice under the Act has led someone to think about a civil suit, a short discussion early saves the wrong filing. Our team handles these questions through legal dispute resolution, starting with the date the order was communicated to you.
Key takeaways
- Section 41 bars civil courts from matters the Director, an Adjudicating Authority or the Appellate Tribunal is empowered to determine.
- Section 41 also bars injunctions by any court or other authority against action taken or to be taken under the Act.
- Section 42 appeals go to the High Court on any question of law or fact arising out of the Tribunal's order.
- The period is sixty days from communication of the order to the appellant, extendable by a further period not exceeding sixty days on sufficient cause.
- The Explanation fixes the High Court by residence, business or work of the aggrieved party, or of the respondent where the Central Government appeals.
- The text prints no form or fee for the High Court appeal; check the rules and the High Court's own procedure.
Read next
- Section 26 PMLA: appeal to the Appellate Tribunal
- Sections 36-40 PMLA: benches, transfer of cases and representation
- Sections 43 and 46-47 PMLA: Special Courts and appeal
- Appellate Tribunal under PMLA
Disclaimer: Based on the consolidated text of the Prevention of Money-laundering Act, 2002 published by the Enforcement Directorate, showing amendments up to Act 23 of 2019 (1 August 2019), and on the Department of Revenue consolidated copy of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 listing amendments up to 19 July 2024, as consulted on 2 October 2026. Later amendments, notifications, other rules and regulator directions should be checked. This article is general information, not legal advice; check the official text before acting.