Order Confirming Attachment under UAPA Appealable Under NIA Act

Delhi High Court 

Why in News? 

A Division Bench of Justice Navin Chawla and Justice Ravinder Dudeja, in Aquil Ahmed v. National Investigation Agency Through the Chief Investigating Officer (2026), held that an order passed under Section 25(6) of the Unlawful Activities (Prevention) Act, 1967 (UAPA), confirming seizure or attachment of property as "proceeds of terrorism", is final in nature and can be challenged before the High Court under Section 21 of the National Investigation Agency Act, 2008 (NIA Act). 

What was the Background of Aquil Ahmed v. NIA (2026) Case? 

• The Designated Authority, Union Ministry of Home Affairs, had passed an order under Section 25(3) of the UAPA confirming attachment of the fourth and fifth floors of a property situated in Pune. 
• The appellant, Aquil Ahmed, challenged this order before the Special Judge, who dismissed his appeal and upheld the attachment. 
• Aggrieved, the appellant filed a further appeal before the Delhi High Court. 
• The NIA raised a preliminary objection to the maintainability of the appeal, contending that Chapter V of the UAPA constitutes a complete code governing seizure, attachment, and forfeiture of proceeds of terrorism. 
• The NIA argued that Section 25(6) of the UAPA already provides an appeal against the Designated Authority's order to the Special Court, while Section 28 separately provides an appeal to the High Court against an eventual forfeiture order under Section 26, and that permitting a further appeal under Section 21 of the NIA Act would create an impermissible second appeal against the same attachment order. 

What were the Court's Observations? 

• On the Nature of an Order Under Section 25(6) of the UAPA: The Court held that an order passed under Section 25(6) of the UAPA, confirming seizure or attachment of property as proceeds of terrorism, is final and not interlocutory in nature, even though it may eventually result in forfeiture of the property under Section 26. 
• On the Statutory Right of Appeal Under Section 21 of the NIA Act: The Court held that Section 21 of the NIA Act confers an unrestricted statutory right of appeal against any judgment, sentence, or order of a Special Court, the only exception being that the order must not be interlocutory. Since the attachment order was final, it fell squarely within this right of appeal. 
• On Attachment and Forfeiture Being Distinct Stages: The Court held that simple attachment of property does not automatically result in its forfeiture under Section 26 of the UAPA. A separate show cause notice under Section 27, along with an opportunity of representation and hearing, is required before an order of forfeiture can be passed. 
• On the Two Appeals Dealing with Distinct Stages: The Court held that an appeal against an attachment order and an appeal against a subsequent forfeiture order deal with distinct stages of the proceedings, each final in its own stage, and therefore do not amount to successive appeals against the same order. 
• On the Rejection of the NIA's Objection: The Court further observed that there was no reason to presume the High Court, while hearing a subsequent appeal against forfeiture, would not take due cognizance of its own earlier order passed in the appeal against attachment. On this basis, the Court rejected the NIA's preliminary objection and held the appeal maintainable.

What is Section 21 of the National Investigation Agency Act, 2008? 

Background & Purpose: 

•  Section 21 of the NIA Act provides the mechanism for appeals against orders passed by a Special Court constituted under the Act. It ensures that parties aggrieved by a Special Court's decisions have a statutory remedy before the High Court, while preserving the finality of purely procedural or interlocutory orders passed during the course of trial. 

Key Provisions: 

• Right of Appeal (Sub-section 1): An appeal lies to the High Court from any judgment, sentence, or order, not being an interlocutory order, of a Special Court, on both facts and law. 
• Limitation (Sub-section 2): Every such appeal must be filed within thirty days from the date of the judgment, sentence, or order appealed from, though the High Court may entertain an appeal after this period if sufficient cause for the delay is shown. 
• Composition of the Bench (Sub-section 3): Every appeal is required to be heard by a bench of two Judges of the High Court. 
• Endeavour for Expeditious Disposal (Sub-section 4): The High Court is required to endeavour to dispose of the appeal within a period of three months from the date of admission. 
• Scope Read with Section 26, UAPA: While Section 21 excludes interlocutory orders from appeal, an order that finally determines a right or liability — such as confirmation of attachment of proceeds of terrorism under Section 25(6) of the UAPA — falls outside this exclusion and remains appealable, even though a further, distinct stage (forfeiture under Section 26) may follow later in the same proceedings.