Serious Fraud Investigation Office vs Sahara Housing Investment Corporation Limited

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2022 Supreme(SC) 544

D. Y. CHANDRACHUD, BELA M. TRIVEDI
Serious Fraud Investigation Office – Appellant
Versus
Sahara Housing Investment Corporation Limited – Respondent

Advocates Appeared:
For the Appellant : Mr. Tushar Mehta, SG, Mr. K.M. Nataraj, ASG, Mr. Kanu Agarwal, Adv., Mr. Rajan Kumar Chourasia, Adv., Mr. Arvind Kumar Sharma, AOR, Mr. Vishal Shrivastava, Adv.
For the Respondent: Mr. Kapil Sibal, Sr. Adv., Mr. Gautam Awasthi, AOR, Mr. Ayush Choudhary, Adv., Mr. Nizam Pasha, Adv., Mr. Devanshu Yadav, Adv., Mr. Sameer Pandey, Adv., Mr. Simranjeet Singh, Adv., Mr. Gautam Talukdar, Adv., Mr. Rahul Tripathi, Adv., Mr. Ram Sajan Yadav, Adv., Mr. Vijay Kumar, Adv., Mr. Gautam Talukdar, AOR.

JUDGMENT :

Dhananjaya Y. Chandrachud, J.

1. Leave granted.

2. These appeals arise from the orders dated 13 December 2021 and 5 January 2022 of the Division Bench of the High Court of Delhi. The High Court is seized of a batch of writ petitions under Article 226 of the Constitution challenging the legality of the orders dated 31 October 2018 and 27 October 2020 of the Union Ministry of Corporate Affairs, authorizing an investigation under the provisions of Section 212 and Section 219 of the Companies Act, 2013 in respect of several corporate entities in the Sahara group. By its interim orders, the High Court stayed the operation, implementation and execution of the above orders. The High Court has also stayed all subsequent action and proceedings initiated in pursuance of those orders “including coercive proceedings and look-out notices” qua the petitioners and their directors, promoters, officers, employees or any other person concerning them.

3. On 31 October 2018, the Government of India in the Ministry of Corporate Affairs, in exercise of its jurisdiction under clauses (a) and (c) of Section 212(1) of the Companies Act 2013 formed an opinion, on the basis of a report dated 14 August

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2022 Supreme(SC) 544

D. Y. CHANDRACHUD, BELA M. TRIVEDISerious Fraud Investigation Office – AppellantVersusSahara Housing Investment Corporation Limited – Respondent

Cases Referred (2)

D. Y. CHANDRACHUD, BELA M. TRIVEDI
Serious Fraud Investigation Office – Appellant
Versus
Sahara Housing Investment Corporation Limited – Respondent