Delhi High Court - Orders
Vijay Mittal & Ors vs Bank Of Baroda And Ors on 24 August, 2022
Author: Sanjeev Narula
Bench: Sanjeev Narula
$~710
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 12272/2022, CM APPL. 36797/2022, CM APPL.
36798/2022 and CM APPL. 36799/2022
VIJAY MITTAL & ORS. ..... Petitioner
Through: Mr. S.R. Srivastava, Advocate with
Ms. Shubi Srivastava and Mr. Prince
Kumar, Advocates.
versus
BANK OF BARODA AND ORS ..... Respondents
Through: Mr. Sumeet Anand, Advocate with
Mr. Pratyush Parimal, Advocate for
Respondent No. 1/Bank of Baroda.
Mr. Ripu Daman Bhardwaj, Advocate
for Respondent No. 2/CBI.
CORAM:
HON'BLE MR. JUSTICE SANJEEV NARULA
ORDER
% 24.08.2022
1. Petitioners impugn the show-cause notice dated 08th August, 2022 issued by Respondent No. 1/Bank declaring M/s. Disco Enterprises as a wilful defaulter and seeks the following reliefs:
"I. To set aside & quash the impugned notice
NO.BR/INDNAR/NPA/2022-23/04-106/50 dated 08.08.2022 of
Respondent No.1 (Annexure P-l) and notice No. BR/INDNAR/NPA/2022- 23/04-106/51 dated 08.08.2022 (Annexure-P-2) for declaring the Petitioners to be Wilful defaulters in terms of the extent RBI Master Circular RBI/2015-16 /100, DBR.No.CID.BC.22/20.16.003/2015-16 dated 01.07.2015 for initiation of the criminal cases.
Signature Not Verified Digitally Signed By:SAPNA SETHI Signing Date:26.08.2022 11:08:33II. To restrain the Respondents from acting in violation of the law & with the malafide intent & oblique motives to harm & prejudice the Petitioners & to deprive them unlawfully of their properties III. To pass any other & further Orders in the facts & circumstance of the case as may be deemed fit & proper by this Hon'ble Court."
2. At the outset, noticing that the challenge laid in the instant petition pertains to a show-cause notice on the basis whereof, no formal decision has been taken as of now, the Court has queried the counsel for Petitioners qua maintainability of the petition.
3. Counsel for Petitioners submits that Respondent No. 1/Bank has concealed material facts and wrongfully accused Petitioners regarding siphoning of funds. In fact, Petitioners have made full disclosures qua details of all their bank accounts in the petition as well as the annexures enclosed therewith. In light of the same, counsel for Petitioner submits that this Court should entertain the present petition.
4. In the opinion of the Court, the above-stated contentions do not raise a jurisdictional issue warranting Court's interference at the stage of a show- cause notice. The Master Circular on Wilful Defaulters dated 1st July, 2015 issued by Respondent No. 3 - Reserve Bank of India, establishes a mechanism whereunder the proposed wilful defaulters are afforded ample opportunity to contest the allegations of the bank.
5. In light of the above, at this stage, Counsel for Petitioners states that he would like to withdraw the present petition, and take recourse to appropriate remedy in accordance with law.
Signature Not Verified Digitally Signed By:SAPNA SETHI Signing Date:26.08.2022 11:08:336. Dismissed as withdrawn with liberty as prayed for.
7. The Court has not examined the merits of the case. All rights and contentions of the parties are left open.
SANJEEV NARULA, J AUGUST 24, 2022 sapna Signature Not Verified Digitally Signed By:SAPNA SETHI Signing Date:26.08.2022 11:08:33