Supreme Court Lauds Azim Premji For Pardoning Person Who Filed Over 70 Frivolous Cases Against Him

The Supreme Court recently lauded the "constructive view" taken by ex-Wipro Chairman Azim Premji in forgiving one R Subramanian, who through his companies had filed more than 70 "misconceived" cases against Mr.Premji and his associates.

A bench comprising Justice Sanjay Kishan Kaul and MM Sundresh allowed the appeals filed by Mr.Azim Premji and his wife Ms.Yaseem Azim Premji to quash the proceedings before a Bengaluru Magistrate on a criminal complaint filed by "India Awake for Transparency"(a private company floated by Mr.Subramanian) alleging illegality in transfer of shares assets to Premji's trust from his private companies. In December 2020, the Court had stayed the proceedings against Premjis.

The Bench had earlier asked Mr.Subramanian - who was convicted for contempt of court by the Karnataka High Court two months ago for filing multiple frivolous cases against Azim Premji on same cause of action - to tender unconditional apology for filing cases against the ex-Wipro Chairman and his associates through his companies "India Awake for Transparency" and "Wholesale Trading Services Pvt Ltd". The Bench had also urged Senior Advocates Mukul Rohatgi and S Ganesh to persuade Mr.Premji to take a more compassionate view. 

Following this, Mr.Premji expressed his acceptance of the apology tendered by Mr.Subramanian.

In the order passed allowing the appeal, the Bench noted :

"The present proceedings have shown that there is nothing impossible as long as the parties are willing to see the reality of a given situation. More than 70 litigations, misconceived as they are, initiated by the respondents will be brought to an end on a realization by Mr. R. Subramanian, who seeks to repent for his past conduct and wants to start a new chapter in his life".

"On the last date of hearing, senior counsel Mukul Rohatgi and S Ganesh had agreed to persuade their client Azim Premji to take a more compassionate view of the conduct of R Subramanian to put a closure to all issues subject to the condition that they do not face the barrage of litigation in future"

"​​We are happy to note that Mr. Azim Hasham Premji has taken a constructive view of the matter and agreed to forgive the past conduct of Mr. Subramanian, more so, in view of the financial issues he has faced and to take also a compassionate view of the amounts due from him to the group companies of Mr. Premji."

Mr Subramanian filed affidavit accepting the four aspects the Bench had required him to undertake as follows :

"1) An apology for the past conduct including initiating these proceedings in different forums;

2) An undertaking to withdraw all proceedings whether in this matter or otherwise initiated by him which are not in defence of claims in Subhiksha/Vishwapriya;

3) An undertaking for the future not to launch any proceedings and undertaking to wind up this organization and not to create any more organization nor to use his brilliance and help of other people to create further litigation;

4) The list of companies which will have any amount in them will be surrendered to Mr. Mukul Rohatgi's clients."

Complainant agrees to withdraw all complaints; tender public apology in media; wind up his companies

Mr.Subramanian said that he will file applications before the concerned courts to withdraw the complaints filed against him Mr.Premji and his associates by stating that the complaints "were founded on incorrect understanding of facts and legal provisions and that accordingly the same should be dismissed as withdrawn". He agreed to file a compliance report before the Supreme Court within 6 weeks regarding the filing of withdrawal applications.

The Bench also approved the draft of the public apology which Mr. Subramanian was required to publish in leading newspapers but with a modification of including the name of two more individuals associated with the Premji firms  

Mr.Subramanian also undertook to wind up "India Awake for Transparency" and not to institute or pursue any proceedings of any kind, either directly or through any other entity or person or against any person, based on any contentions or allegations whatsoever against the Premjis and their group

The Bench also agreed to suspend the sentence of Mr.Subramanian in the criminal contempt case by the Karnataka High Court's order dated January 14, 2022 for a period of 3 years, during which his conduct could be monitored.

The Bench also declared the initiation of criminal proceedings against Azim Premji, his wife and others before the Bengaluru Court as well as the High Court's order of dismissing the petitions filed by Premji questioning Bengaluru Court's summons as unsustainable.

"Suffice to say, we find that the initiation of the criminal proceedings as well as the judgment of the High Court are completely unsustainable and accordingly set aside both of them. We also make it clear that the proceedings not only in PCR Nos.2,3 and 4 of 2018 will come to an end with this but proceedings in PCR Nos.28 and 29/2020 pending before the XXIII Additional City Civil and Sessions Judge, Bangalore, the subject matter of Contempt Petition [C] No.60/2022, also stand quashed," the bench said.

Approves the amalgamation of Premji companies

Further, the Top Court affirmed the High Court's order dated March 26, 2015 which had sanctioned the amalgamation between three private companies associated with Premji viz.Regal Investment and Trading Company Private Limited, Vidya Investment and Trading Company Private Limited, Napean Trading and Investment Company Private Limited and Hasham Investment and Trading Company Private Limited.

Directions were also issued to the Registrar of Companies, Chennai to strike off the names of India Awake Transparency Pvt. Ltd. and the Wholesale Trading Services Pvt. Ltd. from the Register of the Companies. In this regard, the bench also directed to forthwith close the website of these two companies to avoid the misuse by third party.

Financial troubles forced Mr.Subramanian to launch complaints against Premji companies

The Court noted that it was the failure of the Subhiksha/Vishwapriya schemes which caused financial burden to Mr.Subramanian and to escape them, he launched the criminal complaints against Mr.Premji.

"Even if he redeems for his past conduct in these various proceedings, it will not take away his various responsibilities and liabilities towards various claimants in the Subhiksha/Vishwapriya litigation. In fact, the failure of these schemes caused financial burden on Subramanian and his group companies and in an endeavour to escape the liability, he initiated litigations", the Court noted in the order.

Mr.Subramanian was also convicted in a cheque bounce complaint filed by a Premji-associated company. He agreed to suspension of his sentence on condition to allow an Azim Premji-trust owned philanthropic company to recover its dues from his assets.

The bench also adjourned the criminal appeal's assailing Karnataka High Court's order convicting representatives of NGO representing India Awake For Transparency for March 15, 2022.

The bench directed for listing the proceedings with regards to waiver of cost imposed by Court orders on India Awake and Wholesale Trading Services Private Limited in the last working week of December 2023.

Case Title: Azim Hasham Premji & Anr. V. India Awake For Transparency & Ors. | Criminal Appeal Nos.1177-1179/2021

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