The Madhya Pradesh High Court examined the scope of judicial ...
High Court held that SFIO investigation u/s 212 of Companies Act lacked public interest, causing harm to company. Sanction set aside as arbitrary and illegal.
Case Laws Companies Law
May 23, 2024
The Madhya Pradesh High Court examined the scope of judicial review u/s 212(1)(c) of the Companies Act, 2013 regarding the Central Government's sanction for an investigation by the SFIO. The court held that SFIO investigation on transactions already addressed u/s 66 of the IBC would amount to double jeopardy. It emphasized the necessity of public interest for such investigations and found no such element in this case. The court noted that the company's functions were halted due to CIRP and pending liquidation, indicating no public interest or prima facie case for the investigation. The court ruled the sanction as arbitrary, illegal, and lacking a reasoned order, thus setting it aside and quashing any actions taken based on it.
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