New Delhi, Sep 11 The Delhi High Court has observed that the GST Department ought not to access data from the seized CPU of an advocate without his presence and consent, cautioning that such action could result in a serious breach of confidentiality and attorney-client privilege.
A Bench of Justices Prathiba M. Singh and Shail Jain was hearing a plea by advocate Puneet Batra, who challenged a recent search of his Mayur Vihar office and the seizure of documents and electronic devices, including his CPU.
In his petition, Batra, a practising advocate, argued that the GST Department’s action had breached confidentiality, as his CPU contained sensitive client documents unrelated to the ongoing probe against one of his clients, M/s Martkarma Technology Pvt. Ltd., a gaming company.
On the other hand, the GST Department contended that although the petitioner is an advocate, he was not merely representing the company in an attorney-client capacity, but was involved in managing its business and affairs.
In its judgment, the Delhi High Court refrained from making any observation on the petitioner’s role or on whether he was involved in running the client’s business.
“The only direction that the Court is inclined to pass at this stage, without going into the merits of this matter, is to permit the CPU to be analysed by the GST Department, subject, however, to various precautions and conditions,” the Justice Singh-led Bench said.
It took a stern view of the seizure, stressing that the attorney-client privilege must be preserved.
“GST officials ought not to be permitted to open the CPU or computer of any advocate without his presence and consent, inasmuch as the same could lead to serious breach of confidentiality and attorney-client privilege,” the Delhi High Court observed.
“The GST Department is cautioned that, unless there are exceptional circumstances and subject to further orders that may be passed by the Court, if any advocate’s office is to be searched or a computer is to be opened, the same ought to take place in the presence of the advocate and not otherwise,” it added.
However, it permitted the GST Department to examine the petitioner’s CPU, subject to adherence to a detailed protocol.
The Justice Singh-led Bench directed that the CPU may be examined only in the presence of Batra, his legal representatives, IT officials from the Delhi High Court, and forensic experts from both sides.
It added that, upon accessing the CPU, the last date of data access, the nature of files accessed during the earlier inspection by GST officials, and whether any files were deleted, copied, or removed, along with the corresponding dates and times, will be determined.
Further, the Delhi High Court ordered that the entire hard drive will be cloned, and only files relating to the gaming company and associated entities will be shared with the GST Department.
“After the above procedure is undertaken, the CPU itself shall be sealed and shall remain in the custody of the GST Department, subject to the condition that the same shall not be accessed or opened without further orders of this Court,” it said.
The Delhi High Court further ordered that “no coercive measures shall be taken against the petitioner (advocate)” until further consideration of the case. The inspection of the CPU is scheduled for September 11 and 12, with the next hearing fixed for October 30.
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