Mumbai Wtr Private Limited & Anr vs Reserve Bank Of India & Anr on 24 November, 2021

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Delhi High Court - Orders

Mumbai Wtr Private Limited & Anr vs Reserve Bank Of India & Anr on 24 November, 2021

Bench: Prateek Jalan

                         $~201, 206 and 207 (2021 Cause List)
                         *    IN THE HIGH COURT OF DELHI AT NEW DELHI

                         +       W.P.(C) 13176/2021
                                 MUMBAI WTR PRIVATE LIMITED & ANR.             ..... Petitioners
                                                 Through: Mr. Mohit Chaudhary, Mr. Kunal
                                                            Sachdeva and Ms. Mahima Ahuja,
                                                            Advocates.
                                                        versus
                                 RESERVE BANK OF INDIA & ANR.               ..... Respondents
                                                 Through: None.
                         206.
                         +    W.P.(C) 13197/2021
                              ESSEL CORPORATE RESOURCES
                              PRIVATE LIMITED & ORS.                        ..... Petitioners
                                              Through: Mr. Mohit Chaudhary, Mr. Kunal
                                                         Sachdeva and Ms. Mahima Ahuja,
                                                         Advocates.
                                                     versus
                              RESERVE BANK OF INDIA & ANR.               ..... Respondents
                                              Through: None.
                         207.
                         +    W.P.(C) 13198/2021
                              PAN INDIA NETWORK INFRAVEST LIMITED ..... Petitioner
                                              Through: Mr. Mohit Chaudhary, Mr. Kunal
                                                         Sachdeva and Ms. Mahima Ahuja,
                                                         Advocates.
                                                     versus
                              RESERVE BANK OF INDIA & ANR.               ..... Respondents
                                              Through: None.

                         CORAM:
                         HON'BLE MR. JUSTICE PRATEEK JALAN
                                        ORDER

% 24.11.2021 The proceedings in the matter have been conducted through hybrid mode [physical and virtual hearing].

Signature Not Verified SHITU W.P.(C)13176/2021 and connected matters Page 1 of 3 NAGPAL

CM APPL. 41580/2021 (for exemption) in W.P.(C) 13176/2021 CM APPL. 41624/2021 (for exemption) in W.P.(C) 13197/2021 CM APPL. 41626/2021 (for exemption) in W.P.(C) 13198/2021 Exemptions allowed, subject to all just exceptions. These applications stand disposed of.

W.P.(C) 13176/2021 & CM APPL. 41579/2021 (for interim relief) W.P.(C) 13197/2021 & CM APPL. 41623/2021 (for interim relief) W.P.(C) 13198/2021 & CM APPL. 41625/2021 (for interim relief)

1. Issue notice. Notice may be served upon the respondents through all permissible modes and through learned Standing Counsel, if any, in addition.

2. The challenge in the present petitions is to the Master Directions of the respondent No. 1-Reserve Bank of India ["RBI"] dated 01.07.2016, regarding declaration of accounts as fraud accounts.

3. It is submitted by Mr. Mohit Chaudhary, learned counsel for the petitioners, that the accounts of petitioners in the respondent-Yes Bank have been declared as fraud accounts, without compliance with the principles of natural justice.

4. The same Master Directions have been challenged in several writ petitions before this Court. This Court, by interim orders dated 15.02.2019 and 16.06.2019 in W.P.(C) 306/2019, has granted interim relief in favour of the petitioner therein. These orders have been followed in several subsequent orders.

5. Petitions challenging the validity of the Master Directions are pending consideration in this Court, including W.P.(C) 306/2019 and connected matters. The Court is considering the requirements of the Signature Not Verified SHITU W.P.(C)13176/2021 and connected matters Page 2 of 3 NAGPAL principles of natural justice in the context of the said Master Directions, which will have a bearing on the adjudication of the present case also.

6. In these circumstances, the respondents are directed to maintain status quo with regard to the declaration of the accounts of the petitioners as fraud accounts and from taking any further steps pursuant thereto. The respondents are free, however, to issue show cause notices to the petitioners and pass reasoned orders after giving them hearings, if necessary, through video-conferencing.

7. It is made clear that this order does not inhibit investigation, inquiry or other criminal proceedings, nor does it inhibit the right of the petitioners to defend themselves in those proceedings or take such remedies in criminal law, as they may be entitled. The fact that the transactions involved in the criminal proceedings and in the declaration of the petitioners' accounts as fraud accounts may be the same or overlap does not preclude the investigating agencies and the criminal courts from proceeding in accordance with law as far as those proceedings are concerned, subject to the remedies available to the petitioners under the Code of Criminal Procedure, 1973.

8. Counter-affidavits be filed within four weeks. Rejoinders thereto, if any, be filed within two weeks thereafter.

9. List on 01.02.2022.

PRATEEK JALAN, J NOVEMBER 24, 2021 'vp'/ Signature Not Verified SHITU W.P.(C)13176/2021 and connected matters Page 3 of 3 NAGPAL

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Delhi High Court - Orders