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Delhi High Court - Orders

S R B C And Co Llp vs Union Of India And Anr on 12 October, 2021

Author: Jyoti Singh

Bench: Chief Justice, Jyoti Singh

                          $~59 to 61
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          59
                          +     W.P.(C) 11737/2021 & CM APPL. 36270/2021 (Interim directions)
                                 S R B C AND CO LLP                          ..... Petitioner
                                                Through: Mr. Kapil Sibal, Senior Advocate
                                                with Mr. Prateek Khanna, Ms. Ravneet Kaur &
                                                Ms.Sabah Iqbal Siddiqui, Advocates
                                                         versus
                                 UNION OF INDIA AND ANR                        ..... Respondents
                                               Through: Mr. Chetan Sharma, Additional
                                               Solicitor General with Mr. Kirtiman Singh, Central
                                               Government Standing Counsel, Mr. Amit Gupta,
                                               Mr. Vinay Yadav, Mr. Rishav Dubey & Mr.Sahaj
                                               Garg, Advocates
                          60
                          +      W.P.(C) 11738/2021& CM APPL. 36272/2021 (Interim directions)
                                 VINAYAK PUJARE                             ..... Petitioner
                                              Through: Mr. Jayant Mehta, Senior Advocate
                                              with Mr. Prateek Khanna, Ms.Ravneet Kaur & Ms.
                                              Sabah Iqbal Siddiqui, Advocates

                                                         versus
                                 UNION OF INDIA & ANR.                         ..... Respondents
                                               Through: Mr. Chetan Sharma, Additional
                                               Solicitor General with Mr. Kirtiman Singh, Central
                                               Government Standing Counsel, Mr. Amit Gupta,
                                               Mr. Vinay Yadav, Mr. Rishav Dubey & Mr.Sahaj
                                               Garg, Advocates
                          61
                          +      W.P.(C) 11739/2021 & CM APPL. 36277/2021 (Interim directions)
                                 RAVI BANSAL                                          ..... Petitioner
                                                         Through: Mr. Rajshekhar Rao, Senior Advocate
                                                         with Mr. Prateek Khanna, Ms.Ravneet Kaur &
                                                         Ms.Sabah Iqbal Siddiqui, Advocates
                          W.P.(C) 11737/2021, 11738/2021 & 11739/2021                       Page 1 of 4



Signature Not Verified
Digitally Signed
By:KAMAL KUMAR
Signing Date:13.10.2021
15:38:22
                                                          versus

                                 UNION OF INDIA & ANR.                         ..... Respondents
                                               Through: Mr. Chetan Sharma, Additional
                                               Solicitor General with Mr. Kirtiman Singh, Central
                                               Government Standing Counsel, Mr. Amit Gupta,
                                               Mr. Vinay Yadav, Mr. Rishav Dubey & Mr.Sahaj
                                               Garg, Advocates
                                 CORAM:
                                 HON'BLE THE CHIEF JUSTICE
                                 HON'BLE MS. JUSTICE JYOTI SINGH
                                             ORDER

% 12.10.2021 Proceedings have been conducted through video conferencing. CM APPL. 36271/2021 (Exemption) in W.P.(C) 11737/2021 CM APPL. 36273/2021 (Exemption) in W.P.(C) 11738/2021 CM APPL. 36278/2021 (Exemption) in W.P.(C) 11774/2021 Allowed, subject to all just exceptions.

Applications are disposed of.

W.P.(C) 11737/2021 & CM APPL. 36270/2021 (Interim directions) W.P.(C) 11738/2021& CM APPL. 36272/2021 (Interim directions) W.P.(C) 11739/2021 & CM APPL. 36277/2021 (Interim directions) Issue notice.

Mr. Kirtiman Singh, learned Central Government Standing Counsel accepts notice on behalf of the Respondents and seeks time to file counter affidavits.

Time as prayed for is granted.

Let counter affidavits be filed before the next date of hearing. Learned Senior Counsels appearing on behalf of the Petitioners submit that Respondents have issued Show Cause Notice dated 29.09.2021 W.P.(C) 11737/2021, 11738/2021 & 11739/2021 Page 2 of 4 Signature Not Verified Digitally Signed By:KAMAL KUMAR Signing Date:13.10.2021 15:38:22 in W.P.(C) 11737/2021 (which is at Annexure P-31 to the memo of the writ petition), Show Cause Notice dated 28.09.2021 in W.P.(C) 11738/2021 (which is at Annexure P-31 to the memo of the writ petition) and Show Cause Notice dated 29.09.2021 in W.P.(C) 11739/2021 (which is at Annexure P-31 to the memo of the writ petition), which are contrary to the procedure prescribed under the National Financial Reporting Authority Rules (NFRA). It is submitted that Respondent No.2 has illegally combined two distinct proceedings, i.e., investigation and disciplinary proceedings under Rules 10 and 11 of NFRA Rules, respectively. Attention of the Court is drawn to the Show Cause Notices to point out that the concerned Respondent has already issued the imputation of charges of professional misconduct and arrived at a conclusion that the Petitioners are guilty, despite the fact that even the investigation is not complete. Without prejudice to the legality and validity of the Show Cause Notices, learned Senior Counsels submit that the Petitioners are required to reply to the Show Cause Notices on or before 29.10.2021. The time granted is not sufficient to file the replies so as to make an effective representation in defence, besides the fact that the Audit Quality Review Report is voluminous. It is, therefore, prayed that time for filing the replies may be further extended.

We have heard learned Senior Counsels appearing on behalf of the Petitioners as well as the learned Additional Solicitor General appearing on behalf of the Respondents. We are of the view that time for filing the replies to the Show Cause Notices deserves to be extended and no prejudice shall be caused to the Respondents. We, therefore, extend the time and permit the Petitioners to file their replies to the Show Cause Notices issued to them W.P.(C) 11737/2021, 11738/2021 & 11739/2021 Page 3 of 4 Signature Not Verified Digitally Signed By:KAMAL KUMAR Signing Date:13.10.2021 15:38:22 respectively, on or before 18.11.2021.

These writ petitions shall be heard along with W.P.(C) Nos.1522/2020, 1524/2020, 1525/2020 and LPA 113/2021, on 03.12.2021.

CHIEF JUSTICE JYOTI SINGH, J OCTOBER 12, 2021 rk/rd W.P.(C) 11737/2021, 11738/2021 & 11739/2021 Page 4 of 4 Signature Not Verified Digitally Signed By:KAMAL KUMAR Signing Date:13.10.2021 15:38:22