Chairman of the Delhi-based Dalmia Group of Industries, Sanjay Dalmia, and Indiabulls Financial Services (IFS) arrived at an out-of-the-court settlement yesterday. Senior Counsel Ram Jethmalani, representing Dalmia, told Justices J.N. Patel and A.A. Sayed of the Bombay High Court that the parties had settled the matter out-of-court.

IFS had lent Rs. 225 crore ($48.2 million) to the Dalmia Group of Companies on the collateral of some property. Subseqently, IFS found out that the property which was offered as collateral did not belong to Dalmia, and consequently filed a complaint of cheating.

The Economic Offences Wing (EOW) of the Mumbai Police had, in November, issued notice to Dalmia when he failed to appear before the investigating agency, but the High Court had restrained police from acting on the notice until December 14. The Court yesterday extended the restraining order, preventing the police from arresting Dalmia or any director of the Dalmia Group. Dalmia had previously, on November 19, approached the Court seeking permission to go abroad on business matters, but the Bench asked him to first appear before the EOW.

Dalmia has been represented by the Bombay offices of Khaitan & Jayakar and PHA Advocates while IFS has been represented by Karthikeya & Associates. Senior Counsels Siddharth Luthra, V.R.Manohar, Mahesh Jethmalani and Ram Jethmalani appeared for Dalmia at various points in the litigation. The Government was represented by Senior Counsels Amit Desai and Advocate General Ravi Kadam. Indiabulls has been represented by Senior Counsels Surendra Singh and Shirish Gupte.

In two other related matters brought by IFS, which were also settled, involving Swagatham Investment and Lakshmi Vishnu Investment, Senior Counsel N.H. Seervai and advocate Pradeep Saskeria entered appearance respectively.