2019 (8) TMI 1781 - SC - Companies Law

Supreme Court clarifies FIR quashing does not affect Companies Act actions

The Supreme Court of India, with judges Mr. Justice Rohinton Fali Nariman and Mr. Justice Surya Kant, dismissed a Special Leave Petition. The decision ... Allegation of fraud, misappropriation, falsification of records and conspiracy - private complaint filed under Section 156(3) of Cr.P.C - HELD THAT:- The Special Leave Petition is dismissed. The Court dismissed the Special Leave Petition, stating: 'The Special Leave Petition is dismissed.' It affirmed that the criminal proceedings in the impugned F.I.R. remain unaffected by civil/regulatory remedies, expressly holding that the 'quashing of this F.I.R. will not impact any action that may be taken under the Companies Act.' The order therefore preserves parallel paths: denial of extraordinary relief under the Special Leave jurisdiction on the facts presented, while permitting enforcement or proceedings under the Companies Act to continue or commence independently. No reasons elaborated in the order beyond the disposition and the explicit preservation of Companies Act actions.