Delhi High Court - Orders
Documents) Shalini Choudhary vs State Bank Of India & Anr on 25 August, 2021
Author: Amit Bansal
Bench: Amit Bansal
$~26-27
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CM(M) 536/2021 and CMs No. 26657/2021 (for interim relief),
26658/2021 (for stay) & 26660/2021 (for placing on record additional
documents)
SHALINI CHOUDHARY ..... Petitioner
Through: Mr. Sameer Jain, Mr. Angad Sandhu,
Mr. Love Kumar Gupta and
Mr.Suvigya Awasthy, Advocates
versus
STATE BANK OF INDIA & ANR. ..... Respondents
Through: Mr. Rajiv Kapur and Mr. Akshit
Kapur, Advocates for respondent
No.1
AND
+ CM(M) 537/2021 and CMs No. 26687/2021 (for interim relief),
26688/2021 (for stay) & 26690/2021 (for placing on record additional
documents)
ANANT KUMAR CHOUDHARY ..... Petitioner
Through: Mr. Sameer Jain, Mr. Angad Sandhu,
Mr. Love Kumar Gupta and
Mr.Suvigya Awasthy, Advocates
versus
STATE BANK OF INDIA & ANR. ..... Respondents
Through: Mr. Rajiv Kapur and Mr. Akshit
Kapur, Advocates for respondent
No.1
Signature Not Verified
Signed By:ASHWANI
Signing Date:26.08.2021
CM(M) 536/2021 and connected matter Page 1 of 5
23:06:53
CORAM:
HON'BLE MR. JUSTICE AMIT BANSAL
ORDER
% 25.08.2021
[VIA VIDEO CONFERENCING]
1. This order is in continuation of the order dated 18th August, 2021 passed by this Court.
2. As per instructions received, learned counsel for the respondent bank submits that the respondent bank is not agreeable to a video conference being organized from the premises of another public sector bank in Bangkok, Thailand. He submits that in terms of the RBI Master Circular on Wilful Defaulters (Master Circular) dated 1st July, 2015, grant of personal hearing is in the discretion of the Committee constituted for examining the evidence of wilful default and the petitioners cannot claim personal hearing as a matter of right. In this regard, reliance has been placed on clause 3 of the RBI Master Circular which is set out hereinbelow:
"3. Mechanism for identification of Wilful Defaulters The mechanism referred to in paragraph 2.5 above should generally include the following:
......
(b) If the Committee concludes that an event of wilful default has occurred, it shall issue a Show Cause Notice to the concerned borrower and the promoter/whole-time director and call for their submissions and after considering their submissions issue an order recording the fact of wilful default and the reasons for the same. An opportunity should be given to the borrower and the promoter/whole-time director for a personal hearing if the Committee feels such an opportunity is necessary.
3. Counsel for the respondent bank submits that even though there may Signature Not Verified Signed By:ASHWANI Signing Date:26.08.2021 CM(M) 536/2021 and connected matter Page 2 of 5 23:06:53 be travel restrictions currently between Thailand and India, the same are likely to be lifted in the near future and in that event there would be no impediment in the petitioners' coming to India for personal hearing.
4. Learned counsel for the petitioners has found out that there are branches of two Indian public sector banks in Bangkok, Thailand viz. Indian Overseas Bank and Bank of Baroda where hearing through video conferencing can be arranged along with all protocols in place, and to the satisfaction of the respondent bank that the petitioners are not being assisted by any chartered accountants/lawyers/consultants. He relies upon order dated 7th July, 2021 passed in W.P.(C) 306/2019 titled Apple Sponge and Power Ltd. vs. Reserve Bank of India by this Court whereby, in respect of RBI Master Directions for classification of accounts as fraud accounts dated 1st July, 2016, hearing through video conferencing, if necessary, has been granted at an interim stage by this Court.
5. Taking into account the realities of the situation prevailing now owing to the pandemic, video conferencing has become the norm. Be it business meetings or holding of classes in educational institutions, everything is being conducted through video conferencing. For the last almost 18 months, even the Courts in the country are operating on the basis of hearings through video conferencing. Therefore, it is hard to understand the reluctance of the respondent bank to allow the petitioners to appear in the hearing before the Committee through video conferencing. It is not the case of the respondent bank that the Committee is not inclined to give personal hearing to the petitioners. The only concern appears to be that the petitioners should not take assistance of chartered accountants/lawyers/consultants.
6. The Court is of the view that these concerns of the respondent bank Signature Not Verified Signed By:ASHWANI Signing Date:26.08.2021 CM(M) 536/2021 and connected matter Page 3 of 5 23:06:53 can surely be addressed if the petitioners are asked to present themselves at the branch of an Indian public sector banks situated in Bangkok, Thailand as aforesaid and thereupon attend the hearing before the Committee through video conferencing. The respondent bank, also being a public sector bank can easily ensure that the petitioners are not assisted in any manner by any chartered accountants/lawyers/consultants etc. The concern of the respondent bank that the confidentiality of the proceedings would be violated are not relevant inasmuch as the petitioners are the ones who should be concerned about confidentiality of proceedings as it is they who are being sought to be declared as wilful defaulters.
7. Accordingly, the present petitions are disposed of with the following directions:
(i) In the event that the travel restrictions between India and Thailand are removed within 30 days from today, the petitioners would physically present themselves before the respondent bank in India for the personal hearing to be granted before the Committee. Quarantine requirements in India/Thailand will not be a ground for the petitioners not to physically come to India for the hearing. However, taking into account that the petitioners have young kids, they shall not be asked to appear before the Committee together.
(ii) In the event, the travel restrictions are not lifted within the aforesaid period of 30 days, the respondent bank shall arrange for hearing through video conferencing from the premises of the aforesaid Indian public sector banks operating in Bangkok, Thailand or any other mode as may be deemed fit by the respondent bank so that the petitioners can appear before the Committee through video conferencing while Signature Not Verified Signed By:ASHWANI Signing Date:26.08.2021 CM(M) 536/2021 and connected matter Page 4 of 5 23:06:53 remaining in Bangkok, Thailand.
AMIT BANSAL, J.
AUGUST 25, 2021 dk Signature Not Verified Signed By:ASHWANI Signing Date:26.08.2021 CM(M) 536/2021 and connected matter Page 5 of 5 23:06:53