KOCHI: Putting a temporary halt to further proceedings in the Cochin Minerals and Rutile Ltd (CMRL) pay-off case, the Kerala High Court on Wednesday directed that status quo be maintained for two months.

The interim order was issued by Justice TR Ravi while considering a petition filed by CMRL challenging the Additional Sessions Court’s acceptance of a chargesheet filed by the Serious Fraud Investigation Office (SFIO).

CMRL’s counsel submitted that the SFIO had filed a chargesheet in the case, and the Ernakulam Additional Sessions Court took cognisance of the offence without hearing the accused. He referred to Section 223 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), which states that no cognisance shall be taken by a magistrate without providing the accused an opportunity to be heard. He further argued that, under Section 226, the chargesheet should be dismissed for not adhering to the directives under Section 223.

ARL Sundaresan, Additional Solicitor General of India, appearing for the Union government, opposed the petition. He contended that the case falls under the Companies Act, special legislation, and thus is not subject to BNSS procedures.

He also pointed out that the Ministry of Corporate Affairs authorised an investigation on January 12, 2024, and the SFIO was appointed on January 31, 2024—both dates preceding the BNSS’s commencement on July 1, 2024. Therefore, he argued, the proceedings must be governed by the Code of Criminal Procedure (CrPC).