GOVINDARAJA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner is before this Court calling in question proceedings in Crime No.1 of 2021 registered against the petitioner for offences punishable under Ss. 420, 467, 468, 464, 472 and Sec. 34 of the Indian Penal Code.

(2.) Adumbrated in brief, the factual background as projected by the petitioner is as follows: There are three protagonists in the alleged episode of crime - the 2nd respondent/complainant-representative of the 3rd respondent; accused No.2 Nikat Capital, and the petitioner. According to the 2nd respondent who is the Additional Deputy General Manager of the 3rd respondent, the story twined unfolds this way. One Nikat Capital, a company based in the United Kingdom having its office in London was introduced by the petitioner to the complainant through his Director Saimak Vatanabadi. It appears that certain transactions took place between the complainant and Nikat Capital. An international sales contract was executed between Nikat Capital and the 3rd respondent for shipping of 6000 metric tons of Heavy Melting Scrap (HMS) and an amount of 7,35,000 US dollars was transferred from the account of 3rd respondent to Nikat Capital despite the fact there was short supply and was not supplied to the place where it ought to have been supplied.

(3.) The International Sales Contract provided for arbitration as a dispute resolution mechanism between Nikat Capital and the 3rd respondent. Accordingly, arbitration proceedings were invoked in terms of the arbitration clause. Due to impending transfer of funds, a petition was filed before this Court invoking Sec. 9 of the Arbitration and Conciliation Act in AP(IM)100001 of 2020 alleging that the company/Nikat Capital had played fraud with the 3rd respondent and sought a restraint order at the hands of this Court directing the State Bank of India not to transfer the sum of 7,70,770 US dollars which was the consideration in the transaction. This Court by order dtd. 27/11/2020 accepted the case in the petition and passed an interim order of restraint restraining State Bank of India from transferring the amount. It appears, by the time the interim order was passed, the amount had already been transferred to Nikat Capital by the State Bank of India.