(MENAFN- AsiaNet News) The Karnataka High Court has quashed the investigation initiated by the Serious Fraud Investigation Office (SFIO) against Vijay Mallya, the former owner of Kingfisher Airlines, and Captain Gopinath, the founder of Air Deccan, about alleged procedural irregularities in the merger of Kingfisher Airlines Ltd and Deccan Aviation Ltd back in 2007.
The decision came following petitions filed by various parties, including Kingfisher and Deccan Charters, challenging the merger process of the two aviation companies. Justice Hemant Chandan Gowdar, heading a single-member bench, presided over the case.
Vijay Mallya applauds RCB Women's WPL 2024 title triumph
The court ruled that SFIO could not pursue criminal prosecution as none of the alleged victims had filed a complaint regarding the matter. It emphasized that the merger process had received court approval, and thus, reopening the issue through criminal proceedings would constitute an abuse of the legal process.
Highlighting legal complexities, the bench pointed out that the alleged incident occurred under the Companies Act 1956, and therefore, initiating proceedings under the Companies Act 2013 was illegal. The court underscored the protection against retrospective criminalization provided by Article 20(1) of the Constitution, stating that actions not deemed punishable under the 1956 Act cannot be prosecuted.
Supreme Court sentences fugitive Vijay Mallya to 4 months in jail
Moreover, the court criticized the SFIO Special Court's issuance of sudden arrest warrants without prior summons to the accused. It deemed the initiation of proceedings under the 2013 Act for actions that transpired under the 1956 Act as invalid.
"The Karnataka High Court stated that the cognizance taken by the learned judge of the special court lacks legal authority. Additionally, since this court has already approved the scheme of arrangement, reopening the question of whether the merger process was tainted by fraud through criminal prosecution is not permissible. Hence, permitting the continuation of criminal proceedings would amount to an abuse of legal process," thereby quashing the complaint.
MENAFN01052024007385015968ID1108162432
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.