Delhi High Court - Orders
Dharamveer Singh vs Union Bank Of India & Ors on 29 January, 2026
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~130
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 10047/2023& CM APPL. 38707/2023, CM APPL.
5851/2026
DHARAMVEER SINGH. .....Petitioner
Through: Ms Ayushi Arya, Mr. Nitin K Gupta,
Advs.
versus
UNION BANK OF INDIA & ORS. .....Respondents
Through: Mr. Santosh Kumar Rout, SC with R1
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 29.01.2026
1. This is a writ petition filed under Article 226/227 of the Constitution of India seeking the following prayers:-
"a) Setting aside/Quashing the Impugned orders dt.
28.02.2023 and 22.05.2023 passed by the Identification Committee and Review Committee of the Respondent No. 1 Bank in violation of Clause 3(b) of the RBI Master circular 2015 and principles of natural justice and fundamental rights guaranteed to the Petitioner under Articles 14 and 21 of the Constitution of India; and
b) direct Respondents to decide the representation dt. 02.02.2023 and appeal dt. 15.03.2023 on merits and by passing a speaking order;
c) direct Respondents to adhere to the RBI Master circular 2015 and principles of natural justice while deciding the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42 declaration of wilful defaulter against the Petitioner in future;"
2. The case of the petitioner is that a term loan of Rs. 45 crores was availed by the respondent No. 2 Company i.e., Sunworld Residency Pvt. Ltd., from respondent No. 1 Bank i.e., Union Bank of India and the loan account was classified as Non-Performing Asset ("NPA") on 30.09.2018. The petitioner was one of the Directors of respondent No. 2 Company at the time availing the loan and also was a Guarantor.
3. A Show Cause Notice dated 14.06.2022 was issued by respondent No. 1 Bank to the respondent No. 2 Company as well as the petitioner and other guarantors. A Representation/letter dated 20.07.2022 was sent by respondent No. 2 Company to respondent No. 1 Bank.
4. The petitioner received the impugned order dated 28.02.2023 on 01.03.2023 from the respondent No. 1 Bank, whereby the petitioner was informed about the order of the identification committee, which concluded that the mentioned Borrowers/ Promoters/ Directors/ Guarantors are willful defaulters.
5. The petitioner preferred an appeal dated 15.03.2023 against the impugned order dated 28.02.2023. The respondent No. 1 Bank vide letter dated 13.06.2023 sent a copy of the impugned order dated 22.05.2023 passed by the Review Committee of willful defaulter, wherein the petitioner's appeal was dismissed.
6. Hence, the present petition.
7. Ms. Arya, learned counsel for the petitioner, has drawn my attention to 3 letters. First is the letter dated 10.10.2024 issued by respondent No. 1 bank, which is extracted below:-
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42
8. Second, is the letter dated 18.11.2024 issued by the Bank of Baroda, which is extracted below:-
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42
9. Third, is the letter dated 20.11.2024 issued by the respondent No. 1 Bank regarding release of primary security, and the same is extracted below:-
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42
10. Thereafter and most importantly, she draws my attention to an email dated 21.11.2024 issued by respondent No. 1 Bank to Reserve Bank of India ("RBI"), which reads as under:-
11. A perusal of the aforesaid documents, shows that a No Due Certificate has been issued and the OTS settlement has been complied with.
12. The respondent No. 1 Bank has already requested the RBI to remove the name of the respondent No. 2 Company from RBI defaulter list.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42
13. In this view of the matter, I am satisfied that the fountainhead for declaring the petitioner a wilful defaulter i.e., the declaration of the account of respondent No.2 Company being an NPA, no longer survives. Additionally, pursuant to the email of respondent No. 1 Bank, the RBI has removed the name of the petitioner and respondent No. 2 Company from the list of wilful defaulter.
14. For the said reasons, the petition is allowed and the impugned orders dated 28.02.2023 and 22.05.2023 are hereby set aside.
15. The petition is disposed of in aforesaid term, along with pending applications if any.
JASMEET SINGH, J JANUARY 29, 2026 / (MS) This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/02/2026 at 20:38:42