HC refuses to stay proceedings against Swiss firm
New Delhi: The Delhi High Court on Wednesday refused
to stay a possible coercive process against Switzerland-based
accused firm Swiss Timing for not putting in appearance in a
graft case involving the award of a Commonwealth Games-related
contract to it allegedly at an inflated cost.
"There cannot be a stay on the trial court proceedings,"
Justice Mukta Gupta said while asking CBI to file a status
report in two weeks giving details of its actions in the case.
Justice Gupta was hearing the petition of Swiss Timing
seeking a stay on possible coercive measures against it by the
lower court and alleged that it has not been served with the
summons as per the law dealing with offshore companies.
"Improper service of summons outside India impinges on
the sovereignty of that country (Switzerland) if it is not in
accordance of the law," senior advocate Amit Desai, appearing
for the foreign firm, said.
"Till date, CBI has not been able to establish that it
has served the summons on the company in Switzerland as there
was no proof in this regard and it (CBI) misled the lower
court on the issue. No order can be passed in contravention of
treaty obligations vis-a-vis foreign nationals," he said,
adding that any coercive measure will have world-wide
The court asked CBI and the Swiss firm to file written
submissions and posted the matter for hearing on January 30.
CBI earlier said that it had served summons to Swiss
Timing in the manner prescribed under the treaty between two
countries but the firm being under the jurisdiction of
Switzerland, it would take time in bringing it to the
jurisdiction of the Indian court.
Sacked Commonwealth Games Organising Committee chief
Suresh Kalmadi and other co-accused are accused of illegally
granting the contract to Swiss Timing which caused a loss of
over Rs 90 crore to the exchequer.