The Supreme Court has quashed all criminal proceedings initiated against Thiess India and its former chief executive, Raman Srikanth, in Hyderabad, in an order dated March 14.
Srikanth, who parted ways with Thiess in December, told Business Standard, "I am relieved that my innocence has been vindicated."
According to the order, commercial disputes between the Thiess group and Hyderabad-based Roshni Developers, which had initiated the proceedings against Srikanth and Thiess, were settled for $1.8 million (Rs 12 crore) through a court-appointed mediator. "As the amount has been deposited, the proceedings forming the subject matter of FIR No 274/2014... is hereby quashed," the order said.
The dispute related to a 2008 memorandum of understanding (MoU) between Thiess and Roshni.
In his petition, Srikanth had contended he was not even an employee or director of Thiess "when the negotiations took place culminating in the MoU dated 02.07.2008" and that he joined Thiess only in December 2010 and, therefore, the complaint against him was "misconceived".
The MoU inked in July 2008 was with regard to the grant of a sub-contract for the removal of overburden/waste in the Parki Barwadih Coal Project in Jharkhand.
"Alleging Thiess refused to enter into a contract in terms of the MoU and thereby went back on its commitment under the MoU, Roshni invoked arbitration against Thiess on 02.02.2012, seeking specific performance of the MoU or in the alternative for payment of Rs 187.68 crore as compensation."
Separately, Roshni filed a criminal complaint against Thiess, Bruce Munro, the then director of Thiess Minecs, and Srikanth. Based on this complaint, in May 2014, Srikanth was arrested by the Hyderabad police and later released on bail.
| THE LEGAL TANGLE |
Source: Supreme Court orders |
In November 2014, an arbitral tribunal passed an award in favour of Thiess, directing Roshni to pay costs of SGD 2.3 million to Thiess.
Following this order, Srikanth and Thiess moved the high court in Hyderabad challenging the criminal cases. The matter reached the Supreme Court after the high court, in July 2015, dismissed these petitions and ordered completion of investigation in four months.
The Supreme Court issued notice on Srikanth's petition but dismissed the one filed by Thiess. The company, then, made an application for impleadment as a party in Srikanth's matter. Following this, in December, the Supreme Court sent the matter for mediation.
In a mediation meeting held in January, Syama Prasad Reddy of Roshni Developers, Thiess executive Suman Kumar Dey, Srikanth and their counsels agreed Thiess Minecs India would pay $1.8 million to Roshni in full and final settlement. Thiess also agreed to waive the costs (SGD 2.3 million) levied by the arbitral tribunal in its favour against Roshni.
"Both parties have incurred considerable expense on the litigation mentioned above and do not wish to incur any more expenses on such litigations," according to the terms of the settlement.
