Delhi High Court - Orders
Ashok Kumar Pittie vs Punjab National Bank & Ors on 20 May, 2024
$~170
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 7231/2024, CM APPL. 30119/2024 & CM APPL.
30120/2024
ASHOK KUMAR PITTIE ..... Petitioner
Through: Mr. Dayan Krishnan, Senior Counsel
along with Mr. Chirag Madan and
Mr. Ravleen Sabharwal, Advs.
versus
PUNJAB NATIONAL BANK & ORS. ..... Respondents
Through: Mr. Santosh Kumar Rout, Adv. with
Ms. Dharna Veragi, Adv. for R-1.
M: 9990432878
Email: [email protected]
CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
ORDER
% 20.05.2024 CM APPL. 30120/2024 (For Exemption)
1. Exemption allowed, subject to just exceptions.
2. Application is disposed of.
W.P.(C) 7231/2024 & CM APPL. 30119/2024
3. The present petition has been filed being aggrieved of the classification by the respondent no.1 declaring the petitioner as "Fraud", on the basis of loan account vide impugned letter dated 22nd March, 2024.
4. It is further the case that the declaration has been made on the basis of Show Cause Notice dated 15th November, 2023, which is based on a biased Forensic Report dated 05th April, 2023.
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 24/05/2024 at 23:41:07
5. Learned Senior Counsel appearing for the petitioner has drawn the attention of this Court to Annexure P-6, which shows the various partners of M/s Anil Khandelwal & Associates, the Forensic Auditors in the present case.
6. Learned Senior Counsel has also drawn the attention of this Court to Annexure P-7, which is a document, pertaining to a sister concern of the aforesaid M/s Anil Khandelwal & Associates, i.e., Bondwell Corporate Advisors Pvt. Ltd., wherein, the partner Mr. Shashi Khandelwal is the common director of the two concerns. He also submits that Mr. Shubham Patni, the Finance Consultant, who has been listed in the website of the Bondwell, sister concern of M/s Anil Khandelwal & Associates, is the person concern, who contacted the petitioner-company.
7. He draws the attention of this Court to the WhatsApp messages from Mr. Shubham Patni, which read as under:
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 24/05/2024 at 23:41:07
8. Learned Senior Counsel also draws the attention of this Court to the letter dated 06th April, 2023 issued by the petitioner-company to the consortium of banks, wherein it had been stated as follows:
"xxx xxx xxx Reference to the forensic auditor M/s Anil Khandelwal & Associates, Chartered Accountants appointed by the consortium member banks to conduct forensic audit of the company during end June 2022.
The company has provided all the information to the forensic auditor as and when requested and called for. During audit we felt that auditor is biased and not neutral, since we were never given proper opportunity to explain our business and views and simply ignored our replies and justifications.
To support our views of biases and non-neutrality of auditor, please find below some of the digital communications. Kindly note that this communication pertains to the period post appointment of forensic 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 24/05/2024 at 23:41:07 auditor.
xxx xxx xxx"
9. Thus, it is submitted that the Forensic Audit Report, on the basis of which, Show Cause Notice had been issued to the company and the petitioner, and on the basis of which, the account of the petitioner has been declared as "Fraud", is a biased report. Accordingly, it is submitted that on the basis of such biased report, the petitioner or the company's account, could not have been declared as "Fraud" and that the said action is totally illegal.
10. Attention of this Court has also been drawn to the order dated 22nd April, 2024 passed in W.P.(C) No. 5394/2024 to submit that the reply filed by the petitioner to the notice under willful defaulters was considered for the purposes of declaring the account of the petitioner as "Fraud". Thus, it is submitted that the declaration of the account of the petitioner as "Fraud", is illegal on that account also.
11. Issue notice. Notice is accepted by learned counsel appearing for respondent no.1.
12. Let notice be issued to respondent nos. 2 to 6 by all modes.
13. Learned counsel appearing for respondent no.1 submits that the petitioner never pointed out the fact of the Forensic Auditor being biased to the respondent no.1.
14. He further submits that letter in this regard ought to have been written to the Head Office in Delhi, as the Forensic Auditor, is appointed by the Head Office.
15. Disputing the aforesaid, learned Senior Counsel appearing for 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 24/05/2024 at 23:41:07 petitioner, submits that information was sent to the Branch Office in Bombay, which was dealing with the accounts of the company and the petitioner.
16. Let reply be filed within a period of four weeks.
17. Rejoinder thereto, if any, be filed within two weeks thereafter.
18. Considering the submissions made before this Court, it is directed that the letter/communication dated 22nd March, 2024 issued by respondent no.1- Punjab National Bank ("PNB") shall remain stayed till the next date of hearing. It is further directed that the effect of Forensic Audit Report dated 05th April, 2023, shall also remain stayed till the next date of hearing.
19. Re-notify on 03rd September, 2024.
MINI PUSHKARNA, J MAY 20, 2024/kr 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 24/05/2024 at 23:41:07