Delhi High Court - Orders
Bestech India Private Limited vs Reserve Bank Of India & Anr on 24 November, 2020
Author: Jayant Nath
Bench: Jayant Nath
$~A-2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P. (C) 9047/2020 & CM APPLs. 29162 & 29167/2020
BESTECH INDIA PRIVATE LIMITED ... Petitioner
Through Mr.Rajeev Mehra, Sr. Adv. with
Mr.Gurmehar Sistani, Advs.
versus
RESERVE BANK OF INDIA & ANR. ... Respondents
Through Mr.Ananya Kumar and Mr.Rajat
Joneja, Advs. for R-2.
CORAM:
HON'BLE MR. JUSTICE JAYANT NATH
ORDER
% 24.11.2020 This hearing is conducted through video conferencing.
CM APPL. 29167/2020 Allowed subject to all just exceptions.
W.P. (C) 9047/2020 & CM APPL. 29162/2020
1. This writ petition is filed by the petitioner seeking to set aside the declaration of the petitioner's account as a Non-Performing Asset by respondent No.2.
2. Learned senior counsel for petitioner has urged relying upon Clause 7.1.1 read with the repayment schedule of the agreement to plead that till June, 2022 there is no liability on the part of the petitioner to repay any principal amount. Reliance is also placed on Clauses of the agreement to plead that the event for charging of interest has also not yet been reached.
3. It is pleaded that despite the above position the respondent No.2 has declared the account of the petitioner as NPA. Various other allegations are also made against respondent No.2.
4. Learned counsel for respondent No.2 has entered appearance and states that respondent No.2 is not a State or instrumentality of the State. He also states that there is no public issue involved which would warrant this court to exercise its power under Article 226 of the Constitution of India.
5. A perusal of the communication dated 14.10.2020 sent by respondent No.2 shows that the respondent No.2 has classified the account as NPA since 31.03.2020 as per RBI's advice.
6. Learned counsel for respondent No.2 confirms that pursuant to audit undertaken by RBI of the accounts of petitioner advice was rendered to declare the account of the petitioner as NPA by RBI.
7. Despite service of advance copy, unfortunately none has appeared for RBI.
8. As the account of the petitioner has been declared NPA on the advice of RBI presence of RBI is necessary.
9. Issue notice to RBI through standing counsel, returnable for 02.12.2020.
JAYANT NATH, J.
NOVEMBER 24, 2020/st