The first reason which has weighed with the High Court in regard to the construction of Section 212(3) is ex facie contrary to the law, as has been laid down by a two judge Bench of this Court in SFIO vs Rahul Modi. While elaborating upon the provisions of Section 212(3), this Court has held that the statute does not contain any specific prescription of time and the reference to the completion of the investigation within a stipulated period is directory and not mandatory. Further, The order of the Union Government dated 27 October 2020 contains factual averments which relate to the invocation of the jurisdiction clause (c) of Section 219. Clause (c) of Section 219 allows an investigation into the affairs of any other body corporate whose Board of Directors comprises nominees of a company or is accustomed to act in accordance with the directions or instructions of the company or any of its directors. Additionally, the third reason which weighed with the High Court is specious. Held, stay order issued by High Court vacated.
[Serious Fraud Investigation Office v. Sahara Housing Investment Corpn. Ltd., (2022) 9 SCC 794]