HC asks PC, Ramesh Abhishek, KP Krishnan to file response in the defamation suit of Rs.10,000 crores by 63 Moons

For the alleged "malicious and mala fide actions” by the three individuals, 63 moons technologies have sought the payment of damages and compensation in its plea.

Rs 10,000 crore defamation suit against PC
Rs 10,000 crore defamation suit against PC

On Tuesday, 22nd October 2019, the Bombay High Court directed Former Finance Minister P Chidambaram and top IAS officers Ramesh Abhishek former chairman of the Forward Markets Commission (FMC) and KP Krishnan a former officer in the Union Finance Ministry to file their responses within eight weeks in the defamation suit of Rs.10,000 crore filed by 63 Moons Technologies Limited in the National Spot Exchange Limited (NSEL) payment crisis case.

The Bombay HC had summoned three of them (P Chidambaram, Ramesh Abhishek and KP Krishnan) on 24th July 2019 and directed them to appear in the Judge’s Chamber in person or through an advocate, however, as the bench was not assigned on the said date, the matter was heard on Tuesday, 22nd October.

In its plea 63 moons has also called on the Court to direct the three individuals to disclose their assets, properties, and bank account statements for the last three years.

‘On July 24th Justice AK Menon had warned that the matter will be decided ex-parte if the three individuals named above fail to appear’, Advocate Vishwanathan Iyer, counsel representing 63 Moons, pointed out.

The case pertains to the Rs 5,600-crore payment default at 63 Moons subsidiary, National Spot Exchange Ltd (NSEL).

Vishwanathan Iyer further added, “While summons was served on them, they have not filed any reply so far. Hence, we approached the court for direction. The counsel appearing for Ramesh Abhishek sought six weeks to file a reply. The Bombay HC, however, granted eight weeks to them to complete all formalities, including discovery and inspection of documents. If they fail to file reply during this period, then 63 Moons will be at liberty to apply for ex-parte order.”[1]

The court rejected a plea by Chidambaram’s counsel to grant the former finance minister some leeway on the grounds that he is currently in the custody of the Enforcement Directorate (ED) in the INX Media case.

“Two month’s time is more than enough to file written statements which the respondents are under obligations,” the court observed.

63 Moons (formerly known as Financial Technologies Ltd) had filed a suit alleging that Chidambaram, Krishnan, and Abhishek had caused loss worth Rs. 10,000 crore through an alleged conspiracy to engineer the payment default crisis to protect NSEL.

For the alleged “malicious and mala fide actions” by the three individuals, 63 moons technologies have sought the payment of damages and compensation in its plea.

In its plea 63 moons has also called on the Court to direct the three individuals to disclose their assets, properties, and bank account statements for the last three years. Further, it has also been prayed that the Court issue a temporary injunction to prevent them from alienating their properties.[2]

The Court is likely to hear the matter next after eight weeks. A copy of the Bombay High Court order is posted below:

Bombay High Court Order in the case of 63 moons vs Chidambaram and others re NSEL by PGurus on Scribd

References:

[1] Bombay High Court seeks P Chidambaram’s response on 63 Moons suit Oct 23, 2019, Business-Standard.com

[2] 63 Moons Damages Suit: Bombay HC directs P Chidambaram, two bureaucrats to file response in 8 weeks Oct 22, 2019, Bar&Bench.com

Team PGurus

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1 COMMENT

  1. Does it sound suggestive that the bureaucrat named here has not yet been subjected by the govt to any proceedings or action having regard to the seminal work done by this portal in unearthing his misdeeds?

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