Case Law Details
Jermyn Capital LLC Dubai Vs Central Bureau Of Investigation (Supreme Court of India)
Supreme Court held that as appellant company and accused are two separate entities and appellant company is not connected to the alleged crime, the freeze order against the appellant company’s property is not legally tenable.
Facts- The appellant company is a Foreign Institutional Investor and was permitted by the Securities and Exchange Board of India (SEBI) to buy and sell shares and securities in the Indian Stock Market. However, due to certain litigations, the appellant company had quit trading in the Indian markets in 2006. It is important to note that at this point, the appellant company had shares and money in its bank account with ICICI bank.
Subsequently, the appellant company was subject to two freeze orders under Section 102 of the Code of Criminal Procedure, 1973. The first freeze order was imposed against the appellant company on 20.10.2006, and the second freeze order was imposed on 17.08.2010.
It must be noted that the said investigation of the alleged crime was initiated against one Dharmesh Doshi, who is in no way related to the appellant company, and he was never an employee/share holder/director or a key managerial person in the appellant company.
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