Serious Fraud Investigation Office Vs Aditya Sarda (Supreme Court of India)
Supreme Court held that person accused for an offence under section 447 of the Companies Act cannot be released on bail without satisfying mandatory twin conditions prescribed under sub-section (6) of section 212 of the Companies Act. Accordingly, bail granted by High Court set aside.
Facts- MCA directed to Serious Fraud Investigation Office (SFIO) to inquire and investigate into affairs of 125 companies of Adarsh Group. On 25.02.2019, the MCA further ordered to investigate into the affairs of 20 other companies and two persons.
On 09.05.2019, the SFIO, on completion of the investigation submitted an Investigation report to the MCA recommending prosecution against the respondents for the various offences under the Companies Act (1956 and 2013) and of the IPC. Accordingly, on 18.05.2019, a Criminal Complaint, came to be filed by the SFIO in the Special Court at Gurugram impleading 181 Accused including the respondents in the instant Appeals, u/s. 439(2) r.w.s 436(1)(a), (d) and (2) r.w.s 212 of the Companies Act, 2013, r.w.s 621(1) of the Companies Act, 1956, r.w.s. 50 of the Limited Liability Partnership Act, 2008, r.w.s. 193 of the Code of Criminal Procedure, seeking taking of cognizance and prosecution of the Accused named therein for the offences committed by them jointly and severally, under the various provisions of the Companies Act and the Indian Penal Code as mentioned therein.
