Supreme Court restricts further filing of applications before Karnataka High Court in Azim Premji's illegal asset transfer case

  • Gautam Mishra
  • 03:57 PM, 02 Dec 2021

Read Time: 06 minutes

The Supreme Court on Thursday indicated its displeasure over delay in the proceedings before the Karnataka High Court & restricted the High Court from entertaining any further Interlocutory Application in a case pertaining to summons issued by a court in Bengaluru in 2017 against Azim Premji. 
 
A division bench of Justice Sanjay Kishan Kaul and Justice MM Sundaresh noted, "In normal circumstances, it's not for us to tell how the High Court moves forward with the proceedings, but no further IAs be entertained, both the parties will be granted half an hour each for oral arguments and file synopsis in not more than 3 pages."
 
During the hearing today, counsel appearing for the India Awake for Transparency and others informed the bench that earlier, the Court had directed to place the order before Karnataka High Court but unfortunately the matter could not make much progress.
 
It was further submitted that the proceedings before the High Court are being delayed by the filing repetitive IAs, taking adjournments, etc.

"High Court has been liberal with you, if you would have done this here, we would have dealt with it, " the Court added. To which the Counsel for Premji responded that the concerned proceeding was a virtual hearing and there was some disturbance.

"The way in which the proceeding was going on, if the recall would have gone, it would have not been possible to file SLP, that is why I withdrew," counsel added.
 
However, the court orally observed that "We have taken a view that we'll decide that, because due to some delayed proceedings we cannot keep it pending."
 
The Court has kept the matter for directions on January 11.
 
The Karnataka High Court had in March imposed a cost on the respondent for filing multiple petitions against Premji and others over the same issue. It was contended by S.Ganesh, Senior Advocate that the respondents failed to deposit the cost(s).
 
The above proceedings transpired in a complainant filed by India Awake for Transparency (IAT), an NGO, alleging that Azim Premji, Yaseem Azim Premji and Pagalthivarthi Srinivasan alleging breach of trust and corruption in merger of three firms with a Premji group firm and illegality in the transfer of assets worth Rs 45,000 crore from three companies into a private trust and a newly formed company.
 
Premji and others contended before the SC that the complainant NGO had suppressed material facts and documents including that the scheme of amalgamation had already been sanctioned by the Karnataka High Court by order dated March 26, 2015. They further contended that the summons were issued without any application of mind.
 
Case Title: Azim Hasham Premji Vs. India Awake for Transparency & Ors.