Apologies as this news came to us rather belatedly.
In our last post we had updated you on the then ongoing Supreme Court case (posted here) filed by Helios and Matheson Information Technology Ltd. against the order of the Division Bench of the Madras High Court in the matter of the applicability of the TNPID Act.
The Supreme Court had permitted Helios and Matheson Information Technology Ltd. the leave to be heard subject to a deposit of Rs. 10 crores towards security before the Madras High Court by 30/10/2015.
H&M had failed to comply with the same. Accordingly, the Supreme Court dismissed the case.
The implications are manifold:
- The TNPID Act, 1997 is confirmed as applicable to H&M and the EOW investigation against H&M is permitted to continue. However EOW cannot arrest H&M officials on account of a protective order passed by the Madras High Court.
- H&M is no longer obliged to deposit the 10 crores in Madras High Court. However it seems to intent on depositing the same, albeit with an effort to protract proceedings. This could be due to several reasons including but not limited to fear of winding up, genuine effort to repay investors (Fixed Deposits / Promissory Notes / Bill Discounting holders), fear of stringent EOW action if the interim protective order of the Madras High Court is lifted, etc. It is difficult to hypothesize.
- We no longer need to intervene before the Supreme Court and save legal expense for the time being.
