Supreme Court Dismisses Sujana SLP

Sujana Universal Industries Ltd., of which Union Minister, Mr. Y.S.Chowdary is a Non-Executive Director, received yet another setback today with the Hon’ble Supreme Court dismissing a Special Leave Petition (SLP) filed by them. Sujana had preferred this appeal against the judgment of a Single Judge of The High Court of A.P. and Telangana, at Hyderabad, dismissing Sujana’s appeal against the Trial Court’s order upholding the enforceability of the U.K. Decree. The Mauritian Bank, armed with a Decree in their favour passed by a Court in the United Kingdom [to the tune of Rs.106 Crores (approx)] had filed Execution Proceedings against the Union Minister’s Company and the foreign Decree was challenged by Sujana as being un-executable in India.

The Hon’ble Supreme Court held that the Execution Proceedings filed against Sujana by the Mauritius Commercial Bank in Hyderabad must continue, thereby holding the Decree to be executable in India. It is pertinent to note that the Union Minister, Mr.Chowdary, has also been summoned by a Court of Additional Chief Metropolitan Magistrate (Hyderabad) on the basis of a Criminal Complaint filed by the Bank with regard to the same transaction.

“Sujana Universal Industries has defaulted in payment of a loan granted by the Mauritius Commercial Bank and the Bank is armed with a Foreign Decree in its favour. Sujana sought to establish that the Decree could not be executed in India, being hit by Section 13 of the Code of Civil Procedure and their challenge has been put to rest by the Hon’ble Supreme Court today”’ said Mr. Sanjeev Kumar (Partner with the Delhi based Law Firm, Luthra & Luthra Law Offices), lawyer for the Mauritian Bank.