The Supreme Court has revived criminal proceedings against a South Korean national, saying it has a responsibility to “protect the investments of foreign investors” in a case relatedto the alleged embezzlement of nearly ₹10 crore from the Bengaluru-based Korean company Daechang Seat Automotive Ltd.

“At this stage, we are unable to convince ourselves that coming to such a conclusion would be just, reasonable and proper, more so, keeping in view the large amounts of money involved.

“The rule of law has a responsibility to protect the investments of foreign investors, while at the same time ensuring that any person accused of mishandling such funds is really and fully protected by the power of the phrase ‘innocent till proven guilty’. The appeal is, therefore, allowed,” a bench of Justices Sanjay Karol and Ahsanuddin Amanullah said.

The bench asked Moon June Seok, a former employee, to face the criminal trial initiated against him by Karnataka police while allowing an appeal filed by Hyeoksoon Son, the chief financial officer (CFO) and authorised representative of the company, challenging a high courtorder that had quashed the criminal proceedings against the accused.

Seok at the time of the alleged offence was the CFO and Son’s predecessor in Daechang, which manufactures seat-related equipment for KIA. Seok and other co-accused, including the company’s chartered accountant, allegedly defrauded it of nearly ₹10 crore related to the input tax credit under the goods and services tax.

The court agreed with Daechang’s plea that as the CFO, the respondent was in control of the company’s finances and the other co-accused persons were brought into the fold of the operations at his behest. Therefore, Seok is not at liberty to state that he is only a forwarding agent, but rather a vital link in the chain, the court said.