M/S. JERMYN CAPITAL LLC DUBAI v. CENTRAL BUREAU OF INVESTIGATION & ORS.

Case Details & Bench

Court: High Court
Hon'ble Judges: Krishna Murari
Sanjay Kumar
Judgment Date: 2023-05-17
Court Decision / Holding: IA 100413/2023 allowed; MA 1278/2023 disposed of. The Court substituted para 21 of the 09.05.2023 order to permit the appellant to unconditionally withdraw the aforesaid amount along with the fixed deposit interest accrued thereon.
Final Disposition: IA allowed; MA disposed of

Parties to the Case

Appellants / Petitioners

M/S. JERMYN CAPITAL LLC DUBAI

Respondents

Central Bureau of Investigation & ors.

Legal Representation & Advocates

Counsels for Petitioners

• Mukul Rohatgi, Sr. Adv.
• Sunil Fernandes
• Ms. Nupur Kumar
• Divyansh Tiwari
• M. Thangathurai
• Ms. Priyansha Sharma
• Ms. Diksha G Dadu

Counsels for Respondents

• K M Nataraj, ASG
• Rajesh Ranjan
• Mukul Singh
• Shailesh Madiyal
• Pratyush Shrivastav
• Arvind Kumar Sharma
• Ms. Swati Ghildiyal
• Ms. Devyani Bhatt
• M/s. K J John and Co., Advs.

Case Synopsis & Summary

This miscellaneous application arises from a May 9, 2023 order in Criminal Appeal No. 1434 of 2023, concerning the release of Rs. 38.52 crore deposited as sale proceeds. M/S JerMyN Capital LLC Dubai sought modification of the court’s order that required furnishing a bank guarantee for release of the amount, urging that the funds be withdrawn unconditionally along with 4 percent simple interest. The appellant relied on prior directions by the Securities Appellate Tribunal (SAT) and subsequent orders passed by this Court directing that the sale proceeds aggregating Rs. 38.52 crore be kept in bank fixed deposits to secure a higher rate of interest. The appellant furnished copies of the SAT order dated 08.05.2006 and the Court’s orders dated 05.12.2008, 14.05.2009 and 16.11.2009 to demonstrate the historical pattern of preserving value through investment. In light of these materials, the Court modified para 21 of the May 9, 2023 order by substituting it to authorize unconditional withdrawal of the amount together with accrued fixed deposit interest. The IA was allowed, MA 1278/2023 disposed of, and the appellant permitted to withdraw the amount unconditionally with interest, without the requirement of a bank guarantee or fixed deposit constraints, in line with prior practice.”

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant submitted that the sale proceeds (Rs. 38.52 crore) had been directed to fixed deposits following prior SAT and Supreme Court orders to secure a higher interest, and that the Court should modify the May 9, 2023 order para 21 to permit unconditional withdrawal of the amount along with accrued fixed deposit interest; they provided copies of SAT order dated 08.05.2006 and Court orders dated 05.12.2008, 14.05.2009 and 16.11.2009 to support the relief sought.

Contentions of Respondents

Not stated in the provided text.

Extracted Judgment Text

Exact text extracted from official judgment records.

570 SUPREME COURT REPORTS [2023] 6 S.C.R. 570 [2023] 6 S.C.R. A ## M/S. JERMYN CAPITAL LLC DUBAI v. ## CENTRAL BUREAU OF INVESTIGATION & ORS. (Miscellaneous Application No. 1278 of 2023) B In (Criminal Appeal No. 1434 of 2023) ## MAY 17, 2023 ## **[KRISHNA MURARI AND SANJAY KUMAR, JJ.]** C _Judgments/Orders – Modification of – Vide order dtd. 09.05.2023 passed by Supreme Court, the condition imposed upon the appellant to furnish a bank guarantee for release of the sum of Rs.38.52 crore was set aside – Appellant was permitted to withdraw the said amount along with 4 percent simple interest payable from_ D _08.05.2006 till the date of actual payment – Modification sought by appellant, in view of various orders passed earlier by the Securities Appellate Tribunal and Supreme Court, directing the sale proceeds (which ultimately aggregated to Rs.38.52 crore) to be placed in bank fixed deposits so as to garner a higher rate of interest_ E _– Allowed – Appellant permitted to unconditionally withdraw the aforesaid amount along with the fixed deposit interest amount accrued thereon._ CRIMINAL APPELLATE JURISDICTION : Miscellaneous Application No.1278 of 2023 In Criminal Appeal No.1434 of 2023. F From the Judgment and Order dated 09.05.2023 in Crl. A. No.1434 of 2023 of the Supreme Court of India. Mukul Rohatgi, Sr. Adv., Sunil Fernandes, Ms. Nupur Kumar, Divyansh Tiwari, M. Thangathurai, Ms. Priyansha Sharma, Ms. Diksha G Dadu, Advs. for the Appellant. K M Nataraj, ASG, Rajesh Ranjan, Mukul Singh, Shailesh Madiyal, Pratyush Shrivastav, Arvind Kumar Sharma, Ms. Swati Ghildiyal, Ms. Devyani Bhatt, M/s. K J John and Co., Advs. for the Respondents. H 570 ## M/S. JERMYN CAPITAL LLC DUBAI v. CENTRAL BUREAU 571 OF INVESTIGATION & ORS. The following Order of the Court was passed: A ## **O R D E R** ## IA No. 100413/2023 in M.A. No. 1278/2023 By way of this application, the appellant seeks modification of the order dated 09.05.2023 passed by this Court allowing the appeal. Thereby, the condition imposed upon the appellant by the Courts below to furnish a bank guarantee for release of the sum of 38.52 crore was set aside and the appellant was permitted to withdraw the said amount along with 4 percent simple interest payable from 08.05.2006 till the date of actual payment. B C 2. While so, the appellant produced copies of various orders passed earlier, be it by the Securities Appellate Tribunal or by this Court, directing the sale proceeds, which ultimately aggregated to 38.52 crore, to be placed in bank fixed deposits so as to garner a higher rate of interest. Reference in this regard may be made to the order dated 08.05.2006 of the Securities Appellate Tribunal and the orders dated 05.12.2008, 14.05.2009 & 16.11.2009 passed by this Court. D 3. In that view of the matter, the final order dated 09.05.2023 passed in Criminal Appeal No. 1434 of 2023 shall stand modified by E substituting para 21 therein as under: “21. As a consequence, the appellant shall be permitted to unconditionally withdraw the aforesaid amount along with the fixed deposit interest amount that has accrued thereon.” F 4. IA No. 100413/2023 is allowed and, in consequence, M.A. No. 1278/2023 stands disposed of. Divya Pandey (Assisted by : Roopanshi Virang, LCRA) Application disposed of. G H