Union of India Vs Milind Patel and Ors. (NCLT Mumbai)
The Ministry of Corporate Affairs (MCA) filed an application under Rule 11 of the NCLT Rules, 2016, seeking amendment of Company Petition No. 3638 of 2018 to introduce prayer clause (e) based on the findings of the SFIO Investigation Report concerning IL&FS Financial Services Limited (IFIN). The proposed amendment sought a declaration under Section 339 of the Companies Act, 2013 that certain respondents had knowingly participated in the fraudulent conduct of IFIN and should be directed to compensate creditors and other affected persons.
The MCA had directed the Serious Fraud Investigation Office (SFIO) on 30.09.2018 to investigate the affairs of IL&FS and its subsidiaries. The SFIO submitted its IFIN Investigation Report on 28.05.2019, following which the MCA issued a sanction order on 29.05.2019 directing prosecution and seeking interim attachment of assets of the persons named in the report.
The procedural history involved multiple proceedings before different forums. The Bombay High Court had quashed the sanction order on 21.04.2020. However, the Supreme Court, by judgment dated 03.05.2023, restored the sanction order and the SFIO report. The NCLT had earlier permitted amendment of the company petition, and the MCA incorporated prayer clause (e) in February 2024. Although the NCLT upheld the inclusion of the prayer, the NCLAT later directed its deletion while granting liberty to the MCA to file a fresh amendment application.
