In a significant ruling on October 29, the Delhi High Court declined to quash a second FIR lodged against the directors and former directors of KJS Cement (I) Ltd, including Managing Director Pawan Kumar Ahluwalia, in a case involving allegations of cheating and forgery. The court stated that the investigation is still in its early stages, highlighting the distinct nature of the allegations in both FIRs.
The plea, which sought to dismiss the second FIR on the grounds that it was largely repetitive of the first, was rejected by Justice Subramonium Prasad. The judge noted that the second FIR is based on fresh facts that surfaced post the filing of the initial FIR, asserting that the scope of the two FIRs is different and the overlap does not affect their validity.
Himangini Singh, the daughter of the late KJS Ahluwalia and niece of Pawan Kumar Ahluwalia, filed the second FIR. Represented by advocate Vijay Aggarwal, Singh’s complaint brought to light alleged misappropriations of company funds for personal use by the accused.
The court remarked that the first FIR primarily dealt with the alleged document fabrication aimed at ousting Singh and other class-I heirs of the late KJS Ahluwalia from the company by forging documents. The subsequent FIR, however, centers on the alleged financial mismanagement within the company.
“The allegations of misappropriation of company funds constitute a cognizable offence, necessitating a thorough police investigation,” the court observed. It also dismissed the petitioner’s argument questioning Singh’s locus standi, citing ongoing proceedings at the National Company Law Tribunal (NCLT) concerning the company’s share transfers, which confirm her stake and interest in the matter.
Advocate Aggarwal highlighted the severity of the accusations in the second FIR, pointing out that after allegedly seizing control of the company, the accused engaged in illegal transactions and misappropriated company assets.
