National Spot Exchange Limited Vs Central Bureau of Investigation Bank Securities And Fraud Cell & Anr (Supreme Court of India)
Factual Background and Proceedings Before the High Court
The dispute concerned an application by National Spot Exchange Limited (NSEL), accused No.1 in Special CBI Case No. 62 of 2016 and Special CBI Case No. 34 of 2017, seeking a joint and single trial of both cases. The cases were pending before the Special Judge (CBI), Sessions Court, Mumbai. The applicant contended that both cases arose from transactions conducted on the NSEL platform during 2007 to 2013 involving alleged fraudulent paired contracts (T+2 buy and T+25 sale) without actual delivery of commodities, resulting in siphoning of funds.
Read HC Judgment in this case: National Sport Exchange Limited Vs Central Bureau of Investigation Bank Securities and Fraud Cell (Bombay High Court)
In Special Case No. 62 of 2016, the allegations concerned cheating of M/s. PEC Ltd., a Public Sector Undertaking, causing wrongful loss of approximately Rs.120.75 crores. Special Case No. 34 of 2017 concerned alleged cheating of M/s. MMTC Ltd., another Public Sector Undertaking, causing wrongful loss of approximately Rs.222.49 Crores. The applicant submitted that the cases had a similar modus operandi and that 18 accused, 25 witnesses and 71 documents were common. Reliance was placed on Sections 219, 220 and 223 of the Code of Criminal Procedure (Cr.P.C.) to contend that a joint trial was permissible and that separate trials could prejudice the defence.
