Case Note & Summary
The Supreme Court disposed of M.A. No. 320 of 2019 in Civil Appeal No. 11907 of 2018, filed by the State Trading Corporation of India Ltd. (STC) against M/s Global Steel Holding Limited & Ors. The Court was informed by Senior Counsel Mr. D. A. Dave for STC and Mr. Kapil Sibal for the Respondents that the amount of Rs. 600 crores payable by the Respondents towards interest @ 8% p.a. by 28th February 2019 had been paid. Consequently, all liabilities under the Settlement Agreement dated 15.11.2010 and the Further Settlement Agreement dated 17.05.2012 stood fully satisfied. STC stated that there was no further claim against the Respondents arising out of the aforesaid Agreements. In exercise of its powers under Article 136 read with Article 142 of the Constitution of India, the Court quashed the following proceedings: (i) FIR lodged by CBI on complaint of STC bearing R.C. No. 217/2017/A0005/CBI//ACUVI/ACII/New Delhi; (ii) ECIR by Enforcement Directorate bearing ECIR/03/DZI/2017 dated 29.03.2017; (iii) Show Cause Notice dated 29.12.2017 issued by the High Commission of India, Passport & Consular Wing, India House, London; (iv) any Look Out Notice issued against Mr. Pramod Mittal or his wife or their children; and (v) eleven complaints under Sections 420 and 409 IPC pending before the Court of Shri Dharmendra Kumar, Ld. Metropolitan Magistrate, Patiala House Courts, New Delhi. Additionally, STC stated that it would not prosecute the winding-up proceedings instituted by it against GSHIL in the Isle of Man Court. The Court took the statement on record and disposed of the application with no order as to costs.
Headnote
A) Settlement Agreement - Full Satisfaction - Quashing of Proceedings - Upon payment of Rs. 600 crores with interest @ 8% p.a., all liabilities under Settlement Agreement dated 15.11.2010 and Further Settlement Agreement dated 17.05.2012 stood fully satisfied - Supreme Court, in exercise of powers under Article 136 r.w. Article 142 of the Constitution, quashed all related proceedings including FIR, ECIR, Show Cause Notice, Look Out Notice, and eleven complaints under Sections 420 and 409 IPC - Held that no further claims remain (Paras 1-3).
Issue of Consideration
Whether upon full satisfaction of the settlement amount, the proceedings arising from the agreements should be quashed.
Final Decision
M.A. No. 320/2019 is disposed of. All proceedings arising from the Settlement Agreement dated 15.11.2010 and Further Settlement Agreement dated 17.05.2012 are quashed, including FIR, ECIR, Show Cause Notice, Look Out Notice, and eleven complaints under Sections 420 and 409 IPC. No order as to costs.
Law Points
- Settlement agreement
- Full satisfaction of liability
- Quashing of proceedings
- Article 136
- Article 142
- Inherent powers of Supreme Court
