The Supreme Court on Tuesday refused to interfere with orders passed by the Madras High Court in contempt proceedings concerning alleged irregularities in compensation paid for Chennai Metro land acquisition.
A Bench comprising Chief Justice of India Surya Kant and Justice V. Mohan declined to stay the Madras High Court’s orders dated June 3 and June 5, which had brought law firm The Legal Attorneys and Barristers within the scope of the ongoing proceedings. The Court, however, granted the firm liberty to approach the High Court for appropriate relief regarding police summons and related directions.
The controversy arose from allegations that Samarpana Charitable Trust obtained compensation of ₹13.18 crore in connection with Chennai Metro Rail Limited (CMRL) land acquisition proceedings after allegedly concealing an existing mortgage and pending recovery proceedings from the Court.
Although the law firm was not originally a party to the contempt proceedings, its involvement emerged after bank statements placed before the High Court revealed that ₹6.81 crore from the compensation amount received by the Trust had allegedly been transferred to the firm.
Taking note of the transactions, the Madras High Court impleaded the law firm as a party to the proceedings. The High Court also directed authorities to trace the movement of funds, froze bank accounts linked to the Trust, one of its trustees and the law firm, and ordered investigators to examine the transfer of money to the firm.
Senior Advocate Meenakshi Arora, appearing for the law firm, argued that the amounts received were professional fees paid pursuant to a valid engagement agreement. She submitted that the firm had represented the Trust and related parties in 69 matters and contended that the impleadment and police summons raised concerns relating to attorney-client privilege.
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