Delhi High Court - Orders
Apple Sponge And Power Ltd And Ors vs Reserve Bank Of India And Anr on 7 July, 2021
Author: Prateek Jalan
Bench: Prateek Jalan
$~3 to 57, 1 (2021 cause list)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
3
+ W.P.(C) 306/2019 & CM APPLs. 7039/2019, 52374/2019,
52382/2019, 12568/2020, 12569/2020
APPLE SPONGE AND POWER LTD AND ORS ..... Petitioners
versus
RESERVE BANK OF INDIA AND ANR ..... Respondents
4
+ W.P.(C) 4050/2020 & CM APPLs. 14510/2020, 4983/2021
SH S N JHUNJHUNWALA & ORS. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
5
+ W.P.(C) 5729/2020 & CM APPLs. 20700/2020, 12503/2021
SH LAGADAPATI MADHUSUDAN
RAO & ANR. ..... Petitioners
versus
IDBI BANK LIMITED & ORS. ..... Respondents
6
+ W.P.(C) 10968/2019 & CM APPL. 45285/2019
APPLE NATURAL RESOURCES PVT. LTD. ..... Petitioner
versus
RESERVE BANK OF INDIA AND ANR. ..... Respondents
7
+ W.P.(C) 3183/2020 & CM APPL. 11064/2020
RAMAN GUPTA & ANR. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
8
+ W.P.(C) 3924/2020 & CM APPL. 14037/2020
KANTA DEVI ARYA ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 1 of 21
9
+ W.P.(C) 3991/2020 & CM APPL. 14319/2020
MS SHREE NATHJEE ROLLER FLOUR
MILLS LIMITED & ORS. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
10
+ W.P.(C) 4249/2020 & CM APPLs. 15300/2020, 31465-
31466/2020
GOODLUCK CARBON PVT LIMITED ..... Petitioner
versus
RESERVE BANK OF INDIA & ANR. ..... Respondents
11
+ W.P.(C) 4317/2020 & CM APPL. 15557/2020
NARESH KUMAR MITTAL AND ANR ..... Petitioners
versus
RESERVE BANK OF INDIA AND ORS ..... Respondents
12
+ W.P.(C) 4578/2020 & CM APPL. 16537/2020
INDO ALUSYS INDUSTRIES LIMITED & ANR. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
13
+ W.P.(C) 4938/2020 & CM APPLs. 17847-17848/2020
RAJ SNEH AUTO INDIA LTD ..... Petitioner
versus
PUNJAB NATIONAL BANK (PNB) & ANR. ..... Respondents
Signature Not Verified
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NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 2 of 21
14
+ W.P.(C) 4940/2020 & CM APPLs. 17851-17852/2020
RAJ SNEH AUTO WHEELS PVT. LTD. ..... Petitioner
versus
PUNJAB NATIONAL BANK & ANR. ..... Respondents
15
+ W.P.(C) 4941/2020 & CM APPLs. 17853-17854/2020
VARDHMAN ROLLER FLOUR MILLS PVT. LTD...... Petitioner
versus
PUNJAB NATIONAL BANK & ANR. ..... Respondents
16
+ W.P.(C) 5087/2020
SHAKTI NATH & ORS. ..... Petitioners
versus
RESERVE BANK OF INDIA & ANR. ..... Respondents
17
+ W.P.(C) 5185/2020 & CM APPL. 18695/2020
RELIANCE HOME FINANCE LIMITED & ANR. ..... Petitioners
versus
PUNJAB NATIONAL BANK & ANR. ..... Respondents
18
+ W.P.(C) 5280/2020 & CM APPLs. 19027/2020, 28218/2020
RELIANCE HOME FINANCE LIMITED & ANR. ..... Petitioners
versus
BANK OF BARODA & ANR. ..... Respondents
19
+ W.P.(C) 5281/2020 & CM APPLs. 19037/2020, 28239/2020
RELIANCE COMMERCIAL FINANCE
LIMITED & ANR. ..... Petitioners
versus
BANK OF BARODA & ANR. ..... Respondents
20
+ W.P.(C) 5555/2020 & CM APPL. 20054/2020
JAGAT AGRO COMMODITIES PVT. LTD. ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 3 of 21
21
+ W.P.(C) 5749/2020 & CM APPL. 20791/2020
VIPUL MITTAL ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS ..... Respondents
22
+ W.P.(C) 5849/2020& CM APPL. 21141/2020
SUPERTECH LIMITED ..... Petitioner
versus
RESERVE BANK OF INDIA & ANR ..... Respondents
23
+ W.P.(C) 6304/2020 & CM APPL. 22397/2020
SUPERTECH REALTORS PRIVATE LIMITED ..... Petitioner
versus
RESERVE BANK OF INDIA ..... Respondent
24
+ W.P.(C) 6763/2020 & CM APPL. 23471/2020
MOHINDER JAIN ..... Petitioner
versus
THE RESERVE BANK OF INDIA & ORS. ..... Respondents
25
+ W.P.(C) 7233/2020 & CM APPL. 24431/2020
SUNIL GUGLANI & ORS. ..... Petitioners
versus
PUNJAB NATIONAL BANK & ORS. ..... Respondents
26
+ W.P.(C) 7454/2020 & CM APPL. 24894/2020
HEM SINGH BHARANA ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
27
+ W.P.(C) 7742/2020 & CM APPL. 25533/2020
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 4 of 21
KRISHAN KUMAR BASIA AND OTHERS ..... Petitioners
versus
RESERVE BANK OF INDIA AND OTHERS ..... Respondents
28
+ W.P.(C) 7765/2020 & CM APPL. 25584/2020
MR RADHA KRISHNA PANDEY ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
29
+ W.P.(C) 8890/2020 & CM APPL. 28643/2020
VAIBHAV SINGHAL AND ORS ..... Petitioners
versus
KARUR VYSYA BANK ..... Respondent
30
+ W.P.(C) 8906/2020 & CM APPL. 28697/2020
RELIANCE HOME FINANCE LIMITED & ANR. ..... Petitioners
versus
INDIAN BANK & ORS. ..... Respondents
31
+ W.P.(C) 8907/2020 & CM APPL. 28700/2020
RELIANCE COMMERCIAL FINANCE
LIMITED. & ANR. ..... Petitioners
versus
STATE BANK OF INDIA & ORS. ..... Respondents
32
+ W.P.(C) 8935/2020 & CM APPL. 28828/2020
SUNIL GUGLANI & ORS. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
33
+ W.P.(C) 10064/2020 & CM APPL. 32038/2020
ACCURATE INSTITUTE OF MANAGEMENT
AND TECHNOLOGY & ORS. ..... Petitioners
versus
Signature Not Verified
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NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 5 of 21
RESERVE BANK OF INDIA & ANR. ..... Respondents
34
+ W.P.(C) 10138/2020 & CM APPL. 32290/2020
M/S MODERN INSTRUMENTS
PVT. LTD. & ANR. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
35
+ W.P.(C) 10522/2020 & CM APPL. 33284/2020
RELIANCE HOME FINANCE LIMITED & ANR. ..... Petitioners
versus
HDFC BANK & ANR. ..... Respondents
36
+ W.P.(C) 10550/2020 & CM APPLs. 33391/2020, 4112/2021,
4354/2021
RABINDRA SINGH & ANR. ..... Petitioners
versus
PUNJAB NATIONAL BANK & ORS. ..... Respondents
37
+ W.P.(C) 10796/2020 & CM APPL. 33851/2020
ATUL PUNJ ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
38
+ W.P.(C) 11179/2020 & CM APPL. 34880/2020
PUNIT GARG & ORS. ..... Petitioners
versus
STATE BANK OF INDIA & ORS. ..... Respondents
39
+ W.P.(C) 11216/2020 & CM APPL. 34993/2020
PUNIT GARG & ANR. ..... Petitioners
versus
UNION BANK OF INDIA & ORS. ..... Respondents
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 6 of 21
40
+ W.P.(C) 275/2021 & CM APPL. 692/2021
PUNIT GARG ..... Petitioner
versus
BANK OF MAHARASHTRA & ORS. ..... Respondents
41
+ W.P.(C) 300/2021 & CM APPLs. 772/2021, 16803-16804/2021
KUNWER SACHDEV ..... Petitioner
versus
STATE BANK OF INDIA AND ORS. ..... Respondents
42
+ W.P.(C) 338/2021 & CM APPL. 889/2021
MR JAGMOHAN GARG ..... Petitioner
versus
UNION OF INDIA & ORS. ..... Respondents
43
+ W.P.(C) 372/2021 & CM APPL. 992/2021
ATHAR ZIA ..... Petitioner
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
44
+ W.P.(C) 752/2021 & CM APPL. 1893/2021
RELIANCE COMMERCIAL FINANCE
LIMITED & ANR. ..... Petitioners
versus
AXIS BANK & ORS. ..... Respondents
45
+ W.P.(C) 754/2021 & CM APPL. 1899/2021
RELIANCE HOME FINANCE LIMITED & ANR. ..... Petitioners
versus
AXIS BANK & ORS. ..... Respondents
46
+ W.P.(C) 920/2021 & CM APPL. 2491/2021
SINTEX INDUSTRIES LIMITED & ORS. ..... Petitioners
versus
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 7 of 21
RESERVE BANK OF INDIA & ANR. ..... Respondents
47
+ W.P.(C) 925/2021 & CM APPL. 2511/2021
PADAM SINGHEE & ANR. ..... Petitioners
versus
STATE BANK OF INDIA & ORS. ..... Respondents
48
+ W.P.(C) 1830/2021 & CM APPLs. 5268/2021, 11916/2021
SUPERTECH TOWNSHIP PROJECT LTD ..... Petitioner
versus
RESERVE BANK OF INDIA AND ANR. ..... Respondents
49
+ W.P.(C) 2237/2021 & CM APPL. 6482/2021
PADAM SINGHEE & ORS. ..... Petitioners
versus
PUNJAB NATIONAL BANK & ORS. ..... Respondents
50
+ W.P.(C) 3457/2021 & CM APPL. 10486/2021
TRS TECHNOLOGY PVT LTD & ORS. ..... Petitioners
versus
IFCI LTD & ANR. ..... Respondents
51
+ W.P.(C) 3545/2021 & CM APPL. 10725/2021
GAGAN PULSES PVT LTD. & ORS. ..... Petitioners
versus
RESERVE BANK OF INDIA & ORS. ..... Respondents
52
+ W.P.(C) 3760/2021 & CM APPL. 11322/2021
PUNIT GARG & ANR. ..... Petitioners
versus
UCO BANK & ORS. ..... Respondents
53
+ W.P.(C) 3800/2021 & CM APPL. 11436/2021
SINTEX INDUSTRIES LIMITED & ORS. ..... Petitioners
versus
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 8 of 21
RESERVE BANK OF INDIA & ORS. ..... Respondents
54
+ W.P.(C) 4193/2021 & CM APPL. 12749/2021
SANJIV AGARWAL & ORS. ..... Petitioners
versus
IDBI BANK LIMITED & ORS. ..... Respondents
55
+ W.P.(C) 4458/2021 & CM APPL. 13634/2021
VISHAMBHAR SARAN ..... Petitioner
versus
PUNJAB NATIONAL BANK & ORS. ..... Respondents
56
+ W.P.(C) 5068/2021 & CM APPL. 15517/2021
MUKESH KUMAR ROY ..... Petitioner
versus
RESERVE BANK OF INDIA & ANR. ..... Respondents
57
+ W.P.(C) 5178/2020 & CM APPL. 18638/2020
RELIANCE COMMERCIAL FINANCE
LIMITED & ANR. ..... Petitioners
versus
PUNJAB NATIONAL BANK & ANR. ..... Respondents
1
+ W.P.(C) 12858/2019 & CM APPL. 17313/2021
GEE CEE CORP. PVT LTD ..... Petitioner
versus
STATE BANK OF INDIA ..... Respondent
Present:- For Petitioners
Mr. Saurabh Kripal, Senior Advocate with Mr. Manohar
Malik & Ms. Nupoor Maharaj, Advocates in Item nos. 3, 6.
Mr. Malak Bhatt, Ms. Neeha Nagpal, Mr. Vishvendra
Tomar, Advocates in Item nos. 5, 9, 51.
Ms. Priyadarshini Verma and Ms. Aarohi Mikkilineni,
Advocates in Item nos. 8, 34.
Mr. Anubhav Taneja, Mr. Sumesh Dhawan, Ms. Vatsala Kak
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 9 of 21
& Ms. Ankita Bajpai, Advs. in Item no. 10.
Mr. Tanmaya Mehta and Mr. Abhinav Mukhi advocates in
Item nos. 13, 14 & 15.
Mr. Vikas Mehta and Mr. Adith Nair, Advocates in Item
no.12.
Ms. Pratiti Rungta, Advocate in Item nos. 11 & 21.
Mr. Dayan Krishnan, Sr. Adv. with Mr. Vijay Kaundal &
Mr. Nitish K. Sharma, Advocates in Item no. 16
Mr. Prateek Seksaria, Mr. Mahesh Agarwal, Mr. Rishi
Agrawala, Ms. Niyati Kohli, Mr. Pranjit Bhattacharya &
Mr.Ankit Banati, Advocates in Item nos. 17, 18, 19, 30, 31,
32, 35, 38, 39, 40, 44, 45, 52, 57.
Ms. Jayashree Shukla Dasgupta & Ms. Swati Sharma,
Advocates in Item nos. 22, 23, 48.
Mr. Rajiv Singh, Mr. Rishi Raj Sharma & Mr. Harshal
Kumar, Advocates in Item no. 24.
Mr. Saurabh Kirpal, Sr Adv. with Ms. Priyadarshini Dewan
and Ms. Aarohi Mikkilineni, Advs. in Item no. 33.
Mr. Dayan Krishnan, Sr. Advocate with Mr.Aditya Dewan,
Advocate in Item no. 37
Mr. Sanjeev Bhandari, Advocate, Mr. Rajesh Sharma,
Advocate and Mr. Vipin Singh, Advocates in Item nos. 29,
36, 54.
Mr. Vijay K. Singh & Mr. Himanshu Dubey, Advocates in
Item no. 42.
Mr. Ashish Virmani Advocate and Mr. Harsha Gollamudi
Advocates in Item nos. 46, 49 & 50.
Mr. Kavin Gulati, Sr. Adv. with Mr. Jasmeet Singh, Mr.Saif
Ali, Mr. Pushpendra Singh Bhadoriya, Dr. Amar Nath
Mishra, Ms. Ruhsheet Saluja, Advocates for P-2 & 3 in Item
nos. 46 & 53.
Mr Dayan Krishnan, Senior Advocate with Mr Susmit
Pushkar, Mr. Anchit Oswal, Ms. Susanah Naushad, Mr.
Gaurav Sharma, Ms. Bhavna Mishra, Advocates in Item no.
55.
Mr. Manohar Malik & Ms. Nupoor Maharaj, Advocates in
Item no. 56.
Mrs. Maneesha Dhir, Mr. Karan Batura and Mr. Karan
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 10 of 21
Singh, Advocates in Item no. 62.
Ms. Reena Jain Malhotra, Advocate in Item no. 1.
For Respondents
Mr. Rajiv Kapur & Mr. Akshit Kapur, Advs.for SBI in item
nos. 1,4,6,30,31,37,38,41,47,49 and 53.
Mr Gopal Jain Senior Advocate with Mr. Ramesh Babu MR,
Ms Nisha Sharma, Ms Sanya Panjwani, Ms. Jagriti Bharti,
Advocates for RBI in Item nos. 3 to 57.
Mr. Rajesh Kr. Gautam, Mr. Anant Gautam, Mr. Nipun
Sharma & Mr. Madhur Tewatia, Advocates for PNB in Item
nos. 13, 14, 15, 17, 25, 32, 57.
Mr. O.P. Gaggar, Advocate for R-9 in Item no. 4, R-2 in
Item no. 11, R-2 in Item no. 21, R-2 in Item nos. 23-24, R-2
in Item no. 26, R-2 in Item no. 31, R-2 in Item no. 37, R-1 in
Item no. 39, R-3 in Item no. 44, R-2 in Item no. 45 & R-2 in
Item no. 53.
Mr. Dev P. Bhardwaj, CGSC for UOI in Item no. 4.
Mr. Rakesh Dwivedi, Senior Advocate with Mr. Rajiv Kapur
& Mr. Akshit Kapur, Advs. for SBI in Item no. 3.
Ms. Smarika Singh & Ms. Yashna Mehta, Advs. for R-27 in
Item no. 5.
Mr. Sanjeev Sabharwal, Sr Panel Counsel with Mr. Hem
Kumar, Advocate for UOI in Item no. 9.
Mr. Aman Vishal, Adv. for R-5 in Item no. 11.
Mr. Abhishek Anand & Mr. Kunal Godhwani, Advocates for
R-9 in Item no. 11
Mr. Sandeep Sethi, Sr. Adv. with Ms. Smarika Singh,
Ms.Yashna Mehta, Advs. for SBI/R-2 in Item no. 12.
Mr. Nishi Chaudhary, Ms. Yashartha Gupta & Ms. Namrata
Ranga, Advocates for PNB in Item nos. 10, 20, 28.
Mr. V.K. Gupta, Advocate for Bank of Maharashtra in Item
no. 33.
Mr. Naginder Benipal, Senior Panel Counsel with Ms.
Harithi Kambiri, Advocate for R-2 in Item no. 51
Mr. Amol Sharma and Ms. Jagriti Ahuja, Advocates for R-
6/ HDFC bank in Item no. 11, R-14 in Item no. 37. R-15 in
Item no. 53
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 11 of 21
Mr. Bhagvan Swarup Shukla, CGSC with Mr. Sarvan
Kumar, Advocate for UOI in Item no. 26.
Mr. Tushar Singh, Mr. Parthasarathy Bose & Ms. Pankhuri,
Advs. for R-3 in Item no. 36.
Mr. Saju Jakob & Ms. Ekta Bharati, Advocates for R-4 in
Item no. 49 & R-2 in Item no. 42.
Mr. Brijesh Kumar Tamber & Ms. Deepika Raghav,
Advocates for R-3/Indian Bank in Item no. 11, for R-2/Bank
of Baroda in Item no. 16, for R-1/Indian Bank in Item no.
30.
Mr. Tushar Mehta, Solicitor General of India with
Mr.Dheeraj Nair, Mr. Varghese Thomas, Ms. Anjali
Anchayil, Mr. Hormuz Mehta, Ms. Avni Sharma, Mr. Ahsan
Allana, Advocates for R-1 in Item nos. 18 & 19.
Mr. Aman Gandhi, Mr. Dharav Shah, Mr. Abhishek Sharma,
Advs. for HDFC in Item no. 35
Mr. Sidhartha Barua & Mr. Praful Jindal, Advocate IDBI in
Item nos. 5, 37.
Mr. Abhindra Maheshwari & Mr. Nishant Bhargava for R-3
in Item no. 37.
Mr. Abhishek Batra, Adv. for HDFC in Item no. 37.
Mr. Abhirup Dasgupta, Ishaan Duggal and Bhawana
Sharma, Advocates for R-5 in Item no. 37 & 41, R-1 in Item
nos. 44 & 45.
Mr. Aayush Agarwala, Advocate for Axis Bank in Item no.
37.
Mr. Rohit Jha, Proxy Counsel for IFCI in Item no. 50.
Mr. Santosh Kumar Rout, Advocate for Syndicate bank in
Item no. 28, for Central Bank of India in Item no. 34, for
PNB in Item no. 55 & for Bank of Maharashtra in Item no.
56.
Mr. Arun Aggarwal & Mr. R.K. Shrivatav, Advocates for R-
4 & 5 in Item nos. 4 & 53.
Mr. Vaibhav Dang, Advocate for Bank of Baroda (proposed
R-4) in Item no. 3.
Ms. Seema Gupta, Advocates for R-17 in Item no. 5, for R-
2/PSB in item nos. 46 & 48.
Mr. Nishant Awana, Mr. Azmat H. Amanullah &
Signature Not Verified
Digitally Signed By:SHITU
NAGPAL
Signing Date:08.07.2021
11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 12 of 21
Mr.Devvrat, Advocates for R-6/Bank of Maharashtra in Item
no. 5.
Mr. Samarendra Kumar, Adv. for Union Bank of India/ R-3
in Item No. 41
Mr. Sanjay Bajaj, Mr. Rajat Prakash & Mr. Samarth Bajaj,
Advocates for PNB in Item nos. 36 & 47.
Mr. Kunal Tandon and Surendra Kumar, Advocates R-15 in
Item no. 37.
Mr. Vivek Jain & Ms. Ekta Khangawal, Advocates for R-10
in item no. 4, for R-2 & 4 in Item no. 28, for R-6 in Item no.
37
Mr. Sanjay Kumar Pathak, Sr. Panel Counsel with
Ms.K.Kaomudi Kiran Pathak & Mr. Sunil Kumar Jha,
advocates for R-22 in Item no. 37.
Mr Syed Arsalan, Mr Prateek Khaitan. Mr Chatanya Sharma,
Advocates for R-14 in item no. 5, for R-18 in Item no. 37.
Mr. Deepak Kumar Vijay, Advocate for R-10 in Item no. 37.
Mr. Hashmat Nabi and Farah Naaz, Advocate for PNB in
Item no. 47.
Mr. Anupam S Sharrma, SPP-CBI with Mr. Prakarsh Airan
Ms. Harpreet Kalsi, Advocates Item no. 47.
Mr. Neelanshu Roy, Advocate for Indian Overseas Bank in
Item nos. 47, 51, 53, R-2/Bank of Baroda in Item no. 54.
Mr. Ashwini Chawla, Adv. for R-2 in Item no. 47.
Mr. Sarfaraz Khan, Advocate for UCO Bank in Item no. 52.
Mr. Arun Kumar Shukla & Mr. Aamir Shaikh, Advocates
for IDBI Bank/R-1 in Item no. 54.
Mr. Himanshu Shekhar & Mr. Jamnesh Kumar, Advocates
for R-1 in Item no. 53.
Mr. Sanjeev Kumar Sharma & Mr. Rajiv Dalal, Advocates
for R-14 in Item no. 53.
Mr. Nipun Gautam, Advocate for Liquidator in Item no. 55.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 07.07.2021 The proceedings in the matter have been conducted through video conferencing.
Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 13 of 21CM APPL. 19600/2021 (for impleadment) & CM APPL. 19601/2021 (for interim relief) in W.P.(C) 306/2019
1. Issue notice. Mr. Vaibhav Dang, learned counsel, accepts notice on behalf of the proposed respondent - Bank of Baroda.
2. The petitioners have filed these applications for impleadment of Bank of Baroda as respondent no. 4 to this writ petition and for an interim order against the classification of the petitioners' accounts as fraud accounts by the Bank of Baroda.
3. In the main writ petition, only the Punjab National Bank, which was the first bank to classify the petitioners' accounts as fraud accounts under the Master Directions of the Reserve Bank of India ["RBI"] dated 01.07.2016, was made a party. The relief sought in the petition includes a challenge to the constitutional validity of the Master Directions. In view of the fact that the very same circular has been invoked by the Bank of Baroda also, the petitioners' prayer for the impleadment of the Bank of Baroda is justified.
4. CM APPL. 19600/2021 is therefore allowed and the Bank of Baroda is impleaded as respondent no. 4 in the writ petition.
5. Amended memo of parties filed with the application is taken on record.
6. By way of CM APPL. 19601/2021, the petitioners also seek an interim order against further action by the Bank of Baroda, consequent upon classification of the petitioners' accounts as fraud accounts. Having regard to the fact that the validity of the Master Directions itself is under challenge in these writ petitions inter alia on the ground of violation of natural justice, the Court has passed limited interim orders in several Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 14 of 21 petitions. The contention of the petitioners in this petition also is that they were given no notice or opportunity of hearing prior to the classification of the accounts as fraud accounts by the Bank of Baroda. In these circumstances, the petitioners have made out a prima facie case for grant of an ad interim order on the same lines as in the other pending petitions.
7. The newly added respondent-Bank of Baroda is therefore directed to maintain status quo as of today, as far as the petitioners' classification as fraud accounts and action consequent thereupon is concerned. It is however made clear that the Bank of Baroda may provide an opportunity of personal hearing to the petitioners, if necessary by video conference, and proceed accordingly, notwithstanding the pendency of the present petition.
8. It is also made clear that this order does not come in the way of any inquiry, investigation or other proceedings taken or to be taken by or at the instance of the Bank of Baroda.
9. The newly added respondent may file a counter affidavit to the writ petition within two weeks. Rejoinder thereto, if any, be filed within one week thereafter.
10. As the entire batch of petitions is already part heard, and arguments are being advanced first on the common legal issues relating to the validity of the Master Directions, further hearing need not await the completion of pleadings by the newly added respondent.
11. CM APPLs. 19600/2021 and 19601/2021 stand disposed of with the aforesaid directions.
Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 15 of 21CM APPL. 28218/2020 in W.P.(C) 5280/2020 CM APPL. 28239/2020 in W.P.(C) 5281/2020
1. These applications have been filed by the respondent no. 1 - Bank of Baroda in these two writ petitions seeking vacation of an interim order dated 14.08.2020 granted by this Court.
2. The operative portion of the interim order dated 14.08.2020 reads as follows:-
"8. In view of the above, the aforesaid placing of the petitioner in the category of 'Fraud' shall be kept in abeyance till the next date. The respondent Bank shall not take any steps prejudicial to the interest of the petitioners."
3. Mr. Tushar Mehta, learned Solicitor General, appearing for the respondent-Bank, submits that in the facts of the present case, a hearing was already granted to the petitioners prior to classification of the petitioners' accounts as fraud accounts and therefore the basis of the interim order does not subsist. He further draws my attention to the orders passed in several other petitions challenging the same Master Directions, wherein it has been made clear that any investigation, inquiry or other proceedings, may continue notwithstanding the interim order passed.
4. Mr. Prateek Seksaria, learned counsel for the petitioners, submits that the ad interim order ought not to be vacated at the stage of final hearing. However, he does not dispute that an inquiry, investigation or other proceedings will not stand interdicted by the interim orders passed in these writ petitions, so long as they are independent of the classification under the impugned Master Directions.
5. Having heard learned counsel for the parties, and in view of the fact that the final hearing of the entire batch of petitions has already Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 16 of 21 commenced, I am not inclined to vacate the interim order entirely at this stage.
6. However, the submission of the learned Solicitor General with regard to proceedings in the nature of inquiry, investigation etc. is accepted. In other writ petitions, the interim orders bear the clarification of the nature sought by the learned Solicitor General. Mr. Seksaria's objection that the proceedings taken should be independent of the classification of the account as a fraud account under the Master Directions, is also to be found in some of the interim orders.
7. In view of the above, it is made clear that the interim order dated 14.08.2020 passed in these writ petitions will not come in the way of any investigation, inquiry or other proceedings, independent of the classification of the petitioners accounts as fraud accounts under the Master Directions of the RBI dated 01.07.2016. Needless to say, the transactions which form the basis of any criminal proceedings and the transactions which form the basis of the action taken under the Master Directions, may well be the same or overlapping. However, the two proceedings emanate out of different legal provisions and have different legal consequences and would, in that sense, be independent of each other. It is made abundantly clear that neither the right of the Bank to set the criminal law in motion, nor the defences of any person against whom the criminal law is invoked, are sought to be restricted by virtue of the interim order.
8. The applications are disposed of in these terms, leaving it open to the respondent-Bank to file a further application for the same relief, if required at a subsequent stage of the proceedings.
Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 17 of 21W.P.(C) 10064/2020
1. Mr. Saurabh Kirpal, learned Senior Counsel for the petitioners, states that the petitioners have settled all their accounts with the respondent no. 2 - Bank of Maharashtra and have been given a No Dues Certificate on 25.03.2021.
2. Mr. V.K. Gupta, learned counsel appearing for the Bank of Maharashtra, seeks an opportunity to take instructions as to whether the petitioners' account, in these circumstances, continues to be classified as a fraud account. Mr. Gupta will revert on this point on the next date of hearing.
CM APPL.19667/2021 (for permitting the respondent no.4 to initiate action against the petitioner and respondent no.5) in W.P.(C) 2237/2021
1. Issue notice. Mr. Ashish Virmani, learned counsel, accepts notice on behalf of the petitioner.
2. The respondent no.4-Bank of India has filed this application for the following reliefs:-
"a. Permit the Respondent No. 4, Bank of India to register a complaint / FIR against the Petitioners/ Respondents so as to set the criminal law into motion and also to initiate actions for the issuance of lookout circular as there is an imminent danger of Petitioners escaping from the justice system.
AND/OR b. Impose restrictions on the Petitioners from travelling abroad without the permission of the court owing to the apprehension of Respondent bank/ Applicant Bank regarding Petitioner's flight risk considering default committed by Respondent Company in repayment of his dues and thereafter, in view of declaration of fraud and initiation of corporate insolvency proceedings before NCLT Delhi, AND/OR c. Pass any other order/direction, which may be deemed fit Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 18 of 21 and proper on the facts and the circumstances of the case and in the interest of justice."
3. Mr. Saju Jakob, learned counsel for the respondent no.4-applicant, submits that the respondent-Bank wishes to institute appropriate criminal proceedings against the petitioners and also to proceed towards the issuance of a Look Out Circular. However, the Bank apprehends that the interim order dated 19.02.2021 passed by this Court restricts it from doing so.
4. The operative portion of the order dated 19.02.2021 reads as follows:-
"7. In these circumstances, the respondents are directed to maintain status quo with regard to the declaration of the accounts of petitioners as fraud accounts and from taking any further steps pursuant thereto. The respondents are free, however, to issue a show cause notice to the petitioners and pass a reasoned order after giving them hearing, if necessary, through video-conferencing. It is also made clear that any investigation, inquiry or other proceedings may continue in accordance with law."
5. In view of the categorical direction that investigation, inquiry or other proceedings will continue in accordance with law, it is clarified that the aforesaid order does not impede the respondent no. 4 from registering a complaint/FIR against the petitioners or other respondents or to initiate action for issuance of a Look Out Circular in accordance with law. Equally, any party against whom such action is taken, is at liberty to challenge the same in accordance with law, if so advised.
6. As the Master Directions of the RBI does not per se concern any restriction on the petitioners from travelling abroad, the relief sought in prayer (b) of the application is not pressed.
Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 19 of 217. The application is disposed of in these terms. W.P.(C) 306/2019 & CM APPLs. 7039/2019, 52374/2019, 52382/2019, 12568/2020, 12569/2020, W.P.(C) 4050/2020 & CM APPLs. 14510/2020, 4983/2021, W.P.(C) 5729/2020 & CM APPLs. 20700/2020, 12503/2021, W.P.(C) 10968/2019 & CM APPL. 45285/2019, W.P.(C) 3183/2020 & CM APPL. 11064/2020, W.P.(C) 3924/2020 & CM APPL. 14037/2020, W.P.(C) 3991/2020 & CM APPL. 14319/2020, W.P.(C) 4249/2020 & CM APPLs. 15300/2020, 31465-31466/2020, W.P.(C) 4317/2020 & CM APPL. 15557/2020, W.P.(C) 4578/2020 & CM APPL. 16537/2020, W.P.(C) 4938/2020 & CM APPLs. 17847-17848/2020, W.P.(C) 4940/2020 & CM APPLs. 17851-17852/2020, W.P.(C) 4941/2020 & CM APPLs. 17853- 17854/2020, W.P.(C) 5087/2020, W.P.(C) 5185/2020 & CM APPL. 18695/2020, W.P.(C) 5280/2020 & CM APPLs. 19027/2020, 28218/2020, W.P.(C) 5281/2020 & CM APPLs. 19037/2020, 28239/2020, W.P.(C) 5555/2020 & CM APPL. 20054/2020, W.P.(C) 5749/2020 & CM APPL. 20791/2020, W.P.(C) 5849/2020& CM APPL. 21141/2020, W.P.(C) 6763/2020 & CM APPL. 23471/2020, W.P.(C) 7233/2020 & CM APPL. 24431/2020, W.P.(C) 7454/2020 & CM APPL. 24894/2020, W.P.(C) 7742/2020 & CM APPL. 25533/2020, W.P.(C) 7765/2020 & CM APPL. 25584/2020, W.P.(C) 8890/2020 & CM APPL. 28643/2020,W.P.(C) 8906/2020 & CM APPL. 28697/2020, W.P.(C) 8907/2020 & CM APPL. 28700/2020, W.P.(C) 8935/2020 & CM APPL. 28828/2020, W.P.(C) 10064/2020 & CM APPL. 32038/2020, W.P.(C) 10138/2020 & CM APPL. 32290/2020, W.P.(C) 10522/2020 & CM APPL. 33284/2020, W.P.(C) 10550/2020 & CM APPLs. 33391/2020, 4112/2021, 4354/2021, W.P.(C) 10796/2020 & CM APPL. 33851/2020, W.P.(C) 11179/2020 & CM APPL. 34880/2020, W.P.(C) 11216/2020 & CM APPL. 34993/2020, W.P.(C) 275/2021 & CM APPL. 692/2021, W.P.(C) 300/2021 & CM APPLs. 772/2021, 16803-16804/2021, W.P.(C) 338/2021 & CM APPL. 889/2021, W.P.(C) 372/2021 & CM APPL. 992/2021, W.P.(C) 752/2021 & CM APPL. 1893/2021, W.P.(C) 754/2021 & CM APPL. 1899/2021,W.P.(C) 920/2021 & CM APPL. 2491/2021, W.P.(C) 925/2021 & CM APPL. 2511/2021, W.P.(C) 1830/2021 & CM APPLs. 5268/2021, 11916/2021, W.P.(C) 2237/2021 & CM APPL. 6482/2021, W.P.(C) 3457/2021 & CM APPL. 10486/2021, W.P.(C) 3545/2021 & CM APPL. 10725/2021, W.P.(C) Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 20 of 21 3760/2021 & CM APPL. 11322/2021, W.P.(C) 3800/2021 & CM APPL. 11436/2021, W.P.(C) 4193/2021 & CM APPL. 12749/2021, W.P.(C) 4458/2021 & CM APPL. 13634/2021, W.P.(C) 5068/2021 & CM APPL. 15517/2021, W.P.(C) 5178/2020 & CM APPL. 18638/2020, W.P.(C) 12858/2019 & CM APPL. 17313/2021
1. The matters remain part-heard.
2. List for further hearing on 30.07.2021.
3. Mr. Kavin Gulati, learned Senior Counsel and Mr. Kunal Tandon, learned counsel, mention that several writ petitions which have been heard alongwith this batch of petitions have not been listed today in view of the notification of the Court with regard to restricted functioning and hearing of only urgent matters of the years 2020 and 2021. These petitions include W.P.(C) 12460/2019, 12475/2019, 12841/2019, 6830/2020 and 7825/2020.
4. The Registry is directed to list the aforesaid writ petitions also on the next date of hearing. Learned counsel for the petitioners are directed to inform the learned counsel for the other appearing parties of this order in writing within one week from today.
5. The parties are at liberty to file further written submissions in terms of the directions contained in the order dated 21.05.2021 by 23.07.2021. Counter affidavits may also be filed within two weeks.
PRATEEK JALAN, J JULY 7, 2021 'pv/j' Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:08.07.2021 11:02:00 W.P.(C) 306/2019 & Other Connected Matters Page 21 of 21