Madras Hc Quashes Big Ticket Ed Case Against Chennai-based Company | Chennai News - Times of India

Source: The Times of India

Chennai: Holding that the Enforcement Directorate cannot proceed with a money-laundering case after the quashing of the predicate offence, based on which the agency registered a case, Madras high court has quashed an ED case against a Chennai firm.

A division bench of Justice M S Ramesh and Justice Sunder Mohan made the observation on Friday, while quashing an ECIR registered by ED against interior designing company Ocean Lifespaces India Private Limited.

On Feb 14, a single judge of the court quashed an FIR registered in connection with a high-stakes extortion-cum-boardroom dispute of the company allegedly involving the Chennai police.

The court quashed the FIR registered by the Central Crime Branch (CCB) police in 2023, based on the compromise arrived between the parties involved - the directors and a former director of Ocean Lifespaces India, a Chennai-based company.

"The case is still at the stage of investigation. The parties have decided to bury the hatchet and compromise the dispute amicably among themselves," the court had said.

On Feb 7, Balasubramaniam Sriram, a former director of the company, filed an affidavit dated Feb 6 stating that he and the directors of the company Sylvanus King Peter, Anitha Bai Sylvanus King Peter, and Sally Melissa had entered a compromise and amicably settled their issues.

"Under such circumstances, no useful purpose will be served in keeping the FIR pending, even though the offences involved are not compoundable in nature," the court said.

The court then allowed the plea to quash the FIR and directed each of the petitioners to pay 5,000 to the credit of the Tamil Nadu Advocates Clerk Association, Chennai, as costs.

Ocean Lifespaces India is involved in interior designing and property development. Balasubramaniam Sriram was removed from board of directors prompting him to move the National Company Law Tribunal (NCLT).

In addition, he also lodged a complaint with the Chennai CCB that he was cheated by other promoters of the company.

The other promoters moved the high court for quashing the FIR. The CCB inspector filed a report submitted that the promoters have arrived at a solution and that the complainant was paid 34 crore of the agreed 50 crore to give up his 10% stake in the company.

However, the complainant informed the court that the deal was made under threat and coercion by the police. Recording the same, the HC ordered the probe from CCB to CB-CID.