Case Note & Summary
The Supreme Court of India heard Criminal Appeal No. 304 of 2012, arising from Special Leave Petition (Criminal) No. 9168 of 2009, in which the appellants, Lee Kun Hee and others, challenged criminal proceedings initiated against them by JCE Consultancy. The dispute originated from a commercial transaction involving the sale of Coke Calcination packages. On 1 December 2001, Sky Impex Limited, a company registered in the British Virgin Islands, entered into an agreement with JCE Consultancy, a proprietorship concern based in Delhi, India. Under this agreement, JCE Consultancy agreed to sell Sky Impex Limited goods worth US$13,70,000, to be delivered by 30 January 2002. The agreement stipulated that Sky Impex Limited would further transfer the goods to Samsung Gulf Electronics, Dubai, a wholly owned subsidiary of Samsung Corporation, South Korea. Upon delivery to Samsung Dubai, Sky Impex Limited would receive a bill of exchange valued at approximately US$14,32,000, maturity in July 2002, which it would then endorse in favour of JCE Consultancy as payment. After endorsement, Sky Impex Limited's liability would cease, and JCE Consultancy would become the holder in due course of the bill of exchange, entitled to claim directly from Samsung Dubai under the Negotiable Instruments Act. The agreement expressly stated that it would be governed by the laws of India. Delivery of the goods was acknowledged by Sky Impex Limited on 28 January 2002 without any complaint regarding quality or quantity. Subsequently, on 1 February 2002, Samsung Dubai executed a bill of exchange for US$14,32,745 in favour of Sky Impex Limited, which Sky Impex Limited endorsed to JCE Consultancy in accordance with the agreement. However, Samsung Dubai did not honour the bill when it matured. Despite repeated demands, payment was not forthcoming. On 20 December 2004, JCE Consultancy, through its counsel, issued a legal notice to Samsung Dubai demanding payment within 48 hours. Samsung Dubai replied on 21 December 2004, asserting that a credit note had been issued by Sky Impex Limited on 22 June 2002, before the due date, thereby extinguishing any liability on its part. It suggested that JCE Consultancy should seek payment from Sky Impex Limited. In response, Shaikh Allauddin Pakir Maiddin, the sole proprietor of JCE Consultancy, filed a criminal complaint on 28 January 2005 before the VIIth Additional Chief Judicial Magistrate, Ghaziabad, under Sections 403, 405, 415, 418, 420, 423 read with 120B and 34 of the Indian Penal Code. The complaint named Samsung Gulf Electronics, Dubai (accused no.1), its officers Byung Woo Lee (Managing Director), Dong Kwon Byon (Ex-Managing Director), S.C. Baek (Ex-Financial Advisor), as well as senior officials of Samsung Corporation, South Korea, including Lee Kun Hee (President), Yon Jung Yung (Vice President and CEO), along with Sky Impex Limited and its Chairman. The complainant alleged that the accused had conspired to cheat, misappropriate, and commit criminal breach of trust by dishonestly inducing the complainant to deliver goods against a bill of exchange that they never intended to pay, and by falsely representing that payment had been settled. The magistrate took cognizance of the complaint and recorded the statement of the complainant under Section 200 of the Code of Criminal Procedure. Aggrieved by the initiation of criminal proceedings, the accused persons approached the Supreme Court by way of a special leave petition. The Supreme Court granted leave to appeal, leading to the present criminal appeal. The excerpted part of the judgment primarily outlines the factual matrix, the terms of the agreement, the exchange of correspondence, and the contents of the criminal complaint. The Court’s analysis and final decision on the merits of the case were not included in the provided text segment.
Issue of Consideration
Issue of consideration not identified
Final Decision
Decision not clearly stated
Law Points
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