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High Court of Karnataka Adjudicates Writ Petitions Challenging Constitutional Validity of Sections 212(6) and 217 of Companies Act, 2013 and Cognizance Order. Petitioners sought declaration that sections unconstitutional and quashing of arrest warrants issued by the Special Court in SFIO complaint.

High Court: Karnataka High Court Bench: BENGALURU
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2026-10-30 14:16:39
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Issue of Consideration

1. Whether Sections 212(6) and 217 of the Companies Act, 2013 are unconstitutional. 2. Whether the cognizance order dated 28.12.2017 and the arrest warrants issued by the Special Court in Spl.C.C.No.12/2018 are valid and liable to be quashed.

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Case Details

2024 LawText (KAR) (04) 23

W.P. No. 4380/2018 c/w W.P. Nos. 3624/2018, 3625/2018, 3632/2018, 3642/2018, 3829/2018, 3943/2018, 4381/2018, 4671/2018, 6074/2018, 11889/2018

2024-04-15

Hemant Chandangoudar

For petitioners: Udaya Holla, Amar Correa; Amith Desai, Mahesh S.; C.V. Nagesh, Mahesh S.; Sanjog, Ashwin Prabhu, Chander Kumar & Associates; Uday Holla, M.S. Rajendra; Satish Mane Shinde, S.B. Mathapati; S. Mahesh, R. Nagaraja; Uday Holla, Amar Correa; Uday Holla, Guruprasanna S.; Nikhilesh Rao M. For respondent: Prabhuling K. Navadagi, Madhukar Deshpande.

Srividya C G, Ambit Private Limited, Ashok Wadhwa, Vinod Wadhwani, Capt. G R Gopinath, Deccan Charters Limited, Supratim Sarkar, K Ravi Nedungadi, A Harish Bhat, A Raghunathan, Bharath Veeraraghavan, Darshana Kadakia, Rajesh C Jain, Sujal Shah, Rishabh Mishra

Serious Fraud Investigation Office (SFIO)

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Nature of Litigation

Writ petitions under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, challenging the constitutional validity of Sections 212(6) and 217 of the Companies Act, 2013, and seeking to quash the cognizance order and arrest warrants issued by the Special Court.

Remedy Sought

Declaration that Sections 212(6) and 217 of the Companies Act, 2013 are unconstitutional; quashing of the order dated 28.12.2017 taking cognizance and issuing arrest warrants in Spl.C.C.No.12/2018; and quashing of all consequent proceedings.

Filing Reason

The SFIO filed a complaint leading to Spl.C.C.No.12/2018, and the Special Court took cognizance and issued arrest warrants against the petitioners on 28.12.2017, aggrieved by which the petitioners approached the High Court.

Previous Decisions

The LIX Addl. City Civil and Sessions Judge and Special Court under the Companies Act, 2013, Bengaluru, passed an order dated 28.12.2017 taking cognizance in Spl.C.C.No.12/2018 and issuing arrest warrants against the petitioners. No prior judicial decisions in this matter are mentioned.

Issues

Constitutional validity of Sections 212(6) and 217 of the Companies Act, 2013 Validity of the cognizance order and arrest warrants dated 28.12.2017 issued by the Special Court

Judgment Excerpts

DECLARE SECTION 212(6) AND 217 OF THE COMPANIES ACT, 2013 AS UNCONSTITUTIONAL QUASH THE ORDER DATED 28.12.2017 AT ANNEXURE-A TAKING COGNIZANCE AND ISSUING ARREST WARRANT WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA R/W SECTION 482 OF CODE OF CRIMINAL PROCEDURE

Procedural History

The SFIO investigated and filed a complaint which was registered as Spl.C.C.No.12/2018 before the LIX Addl. City Civil and Sessions Judge (Special Court under Companies Act), Bengaluru. On 28.12.2017, the Special Court took cognizance and issued arrest warrants against the petitioners. The petitioners, being aggrieved, filed the present batch of writ petitions under Articles 226 and 227 of the Constitution read with Section 482 of CrPC, challenging the constitutional validity of Sections 212(6) and 217 of the Companies Act, 2013, and seeking quashing of the cognizance order and arrest warrants. The High Court heard the parties and reserved judgment, which was pronounced on 15.04.2024.

Acts & Sections

  • Companies Act, 2013: 212(6), 217
  • Code of Criminal Procedure, 1973: 482
  • Constitution of India: 226, 227
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constitutional validity cognizance order arrest warrants SFIO Companies Act 2013 Section 212(6) Section 217 quashing writ petition special court

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