The Supreme Court of India on Monday declined to intervene in a case involving Pawan Kumar Ahluwalia and other directors of KJS Cement (I) Ltd., allowing the continuation of a 2nd First Information Report (FIR) against them.
The case, which revolves around serious allegations of financial misappropriation, has attracted widespread legal and public attention.
The controversy erupted when Himangini Singh, daughter of the company’s late founder KJS Ahluwalia, filed the second FIR.
Singh accused Pawan Kumar Ahluwalia and other directors of diverting company funds for personal use, causing significant financial damage to the business. This FIR follows an earlier one that dealt with separate allegations of financial irregularities, but the new FIR raised additional accusations of misconduct.
On October 29, 2024, the Delhi High Court rejected a plea to quash the 2nd FIR, ruling that it was based on new facts that emerged after the first FIR was filed. The court concluded that the 2 FIRs addressed different aspects of misconduct and did not violate the principle of “double jeopardy,” which prohibits charging someone multiple times for the same offence.
Pawan Kumar Ahluwalia appealed the High Court’s decision before the Supreme Court. A bench comprising Justice Bela Trivedi and Justice Satish Chandra Sharma heard the case. However, the Supreme Court upheld the High Court’s ruling, allowing the second FIR to stand.
Senior Advocate Siddharth Dave, representing Ahluwalia, argued that the second FIR was a misuse of the legal process and that the issues raised could have been addressed within the scope of the first FIR.
In contrast, Advocate Ayush Jindal, representing Singh, defended the second FIR, emphasizing that it was distinct and necessary to address the new facts. Jindal also highlighted that the Delhi High Court had carefully reviewed the case and found no reason to quash the FIR.
The Supreme Court’s decision sets an important legal precedent. It affirms that separate FIRs can be filed if new facts or evidence arise, even if the same parties are involved. This ruling will have significant implications for corporate governance and legal accountability, especially in cases where fresh allegations surface after an initial FIR is filed.
The ongoing investigation could have profound consequences for KJS Cement (I) Ltd. and its directors, potentially influencing the company’s future direction.
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