Authority: Supreme Court of India
Order Date: 21-07-2026
Case Overview
- Parties: United India Insurance Co. Ltd (appellant) vs. Sayona Colors Pvt. Ltd (respondent) in Civil Appeal No.6100/2024.
- Background: The main civil appeal was allowed on 17-03-2026, but the issue of alleged fraud by the respondent was left open, prompting the Court to direct the Commissioner of Police, Ahmedabad, to set up a Special Investigation Team (SIT).
- Investigation: The SIT submitted a report dated 30-06-2026. The report concluded that:
1. Proprietorship firms in the names of employees of Sayona Colors, Elite Chemicals, Rangoli Enterprise, JMB Traders, and Visvamegh Agency were created after a fire; their TIN/VAT/CST numbers were generated, and purchase bills from these firms were used to show inflated stock in Sayona Colors, leading to an increased cash‑credit (C.C.) limit in the bank.
2. No actual sales were made to Sayona Colors by two other proprietorship firms—Shreeji Enterprises, IVA Tradexcell Pvt. Ltd., and Nirav Chemical Industries—and bills and affidavits were prepared without the owners' knowledge.
3. Report No. FSL/Tapan/11/P/192 dated 13/09/2011 of the FSL, Ahmedabad City, was tampered with and presented before the Court, constituting a criminal act.
- Legal Observations: The Court noted that the material gathered warrants follow‑up action by the police and that the observations made in the earlier order dated 17-03-2026 should not prejudice any subsequent proceedings.
Final Outcome
- The miscellaneous application is disposed of.
- The Commissioner of Police, Ahmedabad, is directed to ensure that, based on the SIT report, appropriate legal action is taken without delay.
- A copy of the SIT report shall be handed to the respondent’s counsel by 22-07-2026, after which it will be resealed and kept on record.
- Parties are free to canvass all points before the appropriate forum, which will consider them on merits, independent of the Court’s earlier observations.
Topics: Fraud Investigation, Court Order