Deloitte Haskins & Sells LLP Vs Union of India & Ors. (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) considered appeals arising from the NCLT Mumbai order dated 22.07.2024 rejecting applications filed by Deloitte Haskins & Sells LLP, Kalpesh Mehta and Udayan Sen concerning the admissibility of the 2nd SFIO Investigation Report and a compilation of documents in proceedings relating to IL&FS. The Ministry of Corporate Affairs (MCA), exercising powers under Section 212 of the Companies Act, 2013, had directed the Serious Fraud Investigation Office (SFIO) to investigate IL&FS and its subsidiaries. The SFIO submitted its 2nd Investigation Report on 28.05.2019, following which the MCA directed prosecution under Section 212(14), and the Union of India filed proceedings before the NCLT. Deloitte Haskins & Sells LLP was subsequently impleaded as Respondent No. 326 in the company petition. The appellants challenged the admissibility of the 2nd SFIO Report, the compilation of documents tendered before the NCLT, and the amended prayer in the company petition.
The appellants contended that Section 212(15), by deeming the SFIO investigation report filed before the Special Court for framing charges to be a police report under Section 173 of the CrPC, rendered it inadmissible as legal evidence. They also relied on Section 223(5), arguing that the exclusion of Section 212 reports from Section 223 meant that the SFIO Report could not be admitted as evidence. The Union of India contended that the deeming fiction under Section 212(15) was confined to the purpose of treating the report as a police report for framing charges and could not prevent reliance on the report for proceedings expressly contemplated under Section 212(14A).
