Karanartham Viramah Foundation Vs Additional Director & Ors. (Supreme Court of India)
The Supreme Court dismissed the Special Leave Petition challenging the Delhi High Court’s decision that had set aside an order of the Central Government directing a Serious Fraud Investigation Office (SFIO) investigation under Section 212(1)(c) of the Companies Act, 2013. The Court noted at the outset that an earlier challenge to the same High Court order had already been dismissed by the Supreme Court in 2018, not only on the ground of delay but also on merits. The present petition was found to be delayed by 3299 days and was therefore liable to be dismissed on that ground as well.
Read HC Judgment: Bombay HC Quashed SFIO Investigation for Lack of Material & Non-Application of Mind
On merits, the Supreme Court examined the reasoning adopted by the Delhi High Court. The High Court had quashed the Central Government’s order dated 05.09.2024 directing an SFIO investigation into the affairs of a company and its subsidiaries. In doing so, the High Court took note of earlier proceedings in which declarations of “wilful defaulter” made by banks against the concerned individual had been set aside by the High Court, with one such decision having attained finality due to the absence of any appeal.
