https://www.taxtmi.com/caselaws?id=753009 MP HC quashed Central Government's sanction dated 30.11.2021 under Section 212(1)(c) of Companies Act, 2013 for SFIO investigation. Court held the sanction was arbitrary and illegal as Central Government failed to form requisite opinion based on material circumstances. Since company was under CIRP and liquidation proceedings were pending with Section 66 IBC application for recovery, SFIO investigation would constitute double jeopardy. Court found no public interest element existed to warrant investigation and emphasized that mere mechanical ordering without proper opinion formation violates statutory requirements. The sanction lacked reasoning and failed natural justice principles. en-us Fri, 03 May 2024 00:00:00 +0530 Thu, 23 May 2024 08:32:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753009 MP HC quashed Central Government's sanction dated 30.11.2021 under Section 212(1)(c) of Companies Act, 2013 for SFIO investigation. Court held the sanction was arbitrary and illegal as Central Government failed to form requisite opinion based on material circumstances. Since company was under CIRP and liquidation proceedings were pending with Section 66 IBC application for recovery, SFIO investigation would constitute double jeopardy. Court found no public interest element existed to warrant investigation and emphasized that mere mechanical ordering without proper opinion formation violates statutory requirements. The sanction lacked reasoning and failed natural justice principles. Case-Laws Companies Law Fri, 03 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753009