Delhi High Court - Orders
Ratul Puri vs Bank Of Baroda & Anr on 8 September, 2022
Author: Sanjeev Narula
Bench: Sanjeev Narula
$~50 & 51
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 12736/2022 & CM APPL. 38708/2022, 38709/2022
RATUL PURI ..... Petitioner
Through: Ms. Maneesha Dhir, Mr. Karab
Batura, Mr. Jayant Chawla and Ms.
Karishma Malani, Advocates.
versus
BANK OF BARODA & ANR. ..... Respondents
Through:
Mr. Kush Sharma, Standing Counsel
with Mr. Vineet Nayar and Mr. Asixa
Khan, Advocates for R-1.
+ W.P.(C) 12737/2022 & CM APPL. 38710/2022
RATUL PURI ..... Petitioner
Through: Ms. Maneesha Dhir, Mr. Karab
Batura, Mr. Jayant Chawla and Ms.
Karishma Malani, Advocates.
versus
BANK OF BARODA & ANR. ..... Respondents
Through: Mr. Kush Sharma, Standing Counsel
with Mr. Vineet Nayar and Mr. Asixa
Khan, Advocates for R-1.
CORAM:
HON'BLE MR. JUSTICE SANJEEV NARULA
ORDER
% 08.09.2022
1. Pursuant to order dated 05th September, 2022, Mr. Kush Sharma, Signature Not Verified Digitally Signed W.P.(C) 12736/2022 and other connected matter Page 1 of 5 By:SAPNA SETHI Signing Date:09.09.2022 18:45:23 counsel for Respondent No. 1 - Bank of Baroda [hereinafter, "Respondent Bank"], confirms that Petitioner has been declared as 'wilful defaulter' by the Identification Committee vide order dated 19th August, 2022, intimated to the Petitioner vide communication dated 05th September, 2022. Receipt of the order has been confirmed by Ms. Maneesha Dhir, counsel for Petitioner.
2. Ms. Dhir submits that Respondent Bank has unfairly delayed intimation of order of Identification Committee. Written submissions were filed as early as 4th September, 2021, and it took them nearly one year to take a decision thereon. Nonetheless, Petitioner would now avail the remedy of approaching Review Committee, in terms of the Master Circular on Wilful Defaulters dated 01st July, 2015 issued by Reserve Bank of India [hereinafter, "Master Circular"]. However, she prays for enlargement of time to avail the said remedy.
3. Additionally, Ms. Dhir submits that Respondent Bank has erroneously mentioned name of the Petitioner in list of defaulters published on Respondent No. 2 - TransUnion CIBIL Limited's website. A copy thereof is annexed as Annexure P-1 in both petitions.
4. On this issue, the prayers sought are as under:
"a. Issue a writ/ order/ direction in the nature of mandamus and/or any other appropriate writ/ order/ direction of like nature directing the Respondent Nos. 1 and 2 to remove/ delete the name of the Petitioner appearing in the list of 'Suit filed accounts- Wilful Defaulters Rs.1 Crore and above as on 31-Mar-2022' uploaded on the official website of Respondent No...;
b. Issue a writ in the nature of mandamus or any other appropriate writ of like nature directing the Respondent Nos 1 & 2 to remove all incriminating and false information against the Petitioner from the website of Respondent No.2, which information has been published at the behest of Respondent No.1 Bank.
c. Pass an order restraining the Respondent Nos. 1 and 2 and or I their servants, agents, assignees and officers and I or any one claiming through or under them from publishing I reporting the name of the Petitioner to the Reserve Bank of India I Respondent No.2 (CIBIL) I Signature Not Verified Digitally Signed W.P.(C) 12736/2022 and other connected matter Page 2 of 5 By:SAPNA SETHI Signing Date:09.09.2022 18:45:23 newspapers and or giving any effect in furtherance of the act of Respondent No. 1 unlawfully reporting the name of Petitioner to the Respondent No. 2 and publishing the same in the list of 'Suit filed accounts - Wilful Defaulters Rs.l Crore and above as on 31-Mar-2022' uploaded on the official website of Respondent No.2, in any manner whatsoever; and d. Pass such other orders as may be deemed fair and equitable in the facts of the case and in the interests of justice.''
5. It is noticed that in prayers 'a' and 'c', the list has been described as 'Suit filed accounts - Wilful Defaulters Rs.1 Crore and above as on 31-Mar- 2022', however, on a perusal of Annexure P-1, the phrase 'wilful defaulter' is not found. Instead, list refers to 'Suit Filed Accounts- Defaulters Rs 1 crore and above as on 31-July-2022'. Ms. Dhir apologises for the aforesaid mistake.
6. On this aspect, Mr. Sharma has informed that names in aforesaid list are not added pursuant to declaration of wilful defaulters, but is rather Respondent Bank's intimation to Respondent No. 2 of defaulting persons against whose accounts suits have been filed. Indeed, a person can be declared as a wilful defaulter only when proceedings in terms of the Master Circular culminate with final order of the Review Committee, and not before that. Insofar as inclusion in list annexed as Annexure P-1 is concerned, it must firstly be noted, that in respect of proceedings pending before Debts Recovery Tribunal- II ["DRT"] against M/s Moser Baer India Limited ["MBIL"] and its guarantors (mentioned in the memo of parties), Petitioner is not included, however, his name has been included in capacity of Director of MBIL and M/s Moser Baer Solar Limited ["MBSL"], which is apparent from the following:
Signature Not Verified Digitally Signed W.P.(C) 12736/2022 and other connected matter Page 3 of 5 By:SAPNA SETHI Signing Date:09.09.2022 18:45:237. Petitioner had in fact, resigned from the directorship of MBIL and MBSL w.e.f 16th November, 2012 as mentioned in Form-32, annexed as Annexures P-6 and P-4 in W.P.(C) 12736/2022 and W.P.(C) 12737/2022, respectively. Mr. Sharma does not dispute the above fact and states that the date of filing with MCA/ROC is 29th September, 2012, as noted in order dated 19th August, 2022 passed by the Identification Committee.
8. From the above-noted facts, it emerges that Petitioner's resignation from directorship of MBIL is not a disputed fact. Petitioner was not a party to the proceedings before DRT is also uncontroverted. Thus, there is an error Signature Not Verified Digitally Signed W.P.(C) 12736/2022 and other connected matter Page 4 of 5 By:SAPNA SETHI Signing Date:09.09.2022 18:45:23 in the afore-noted list published on Respondent No. 2's website. Accordingly, Respondent Bank is directed to send an intimation to Respondent No. 2 for updating the said list by deleting the name of Petitioner from the list of directors/ suit filed accounts defaulters within a period of two weeks from today. Respondent No. 2 shall then update the list forthwith.
9. With respect to order dated 19th August, 2022, the Court has not expressed any opinion thereon, and all rights and contentions of the parties are left open.
10. Considering the aforenoted circumstances, time period for approaching the Review Committee is enlarged by a period of 15 days from today.
11. With the above directions, the present petitions are disposed of along with any pending application(s).
12. Copy of this order be given dasti.
SANJEEV NARULA, J SEPTEMBER 8, 2022/d.negi Signature Not Verified Digitally Signed W.P.(C) 12736/2022 and other connected matter Page 5 of 5 By:SAPNA SETHI Signing Date:09.09.2022 18:45:23