Delhi High Court - Orders
Shri Lalit Kishore & Ors vs Reserve Bank Of India & Anr on 4 January, 2023
Author: Rekha Palli
Bench: Rekha Palli
$~38
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 60/2023 & CM APPL. 151/2023 (stay)
SHRI LALIT KISHORE & ORS. ..... Petitioners
Through: Mr.Kirti Uppal, Sr. Adv. with
Mr.Vijender Vats, Ms.Riya Gulati, Mr.Shekhar
Kumar, Mr.Himanshu Bidhuri & Mr.Chandan
Sinha, Advs.
versus
RESERVE BANK OF INDIA & ANR. ..... Respondents
Through: Mr.Ramesh Babu MR, Ms.Manisha
Singh & Ms.Sanya Panjwani, Advs. for R-1.
Mr.Rajesh Kr. Gautam & Mr.Anant Gautam,
Advs. for R-2.
CORAM:
HON'BLE MS. JUSTICE REKHA PALLI
ORDER
% 04.01.2023 CM APPL. 152/2023
1. Exemption allowed, subject to all just exceptions.
2. The application stands disposed of.
W.P.(C) 60/2023 & CM APPL. 151/2023 (stay)
3. The petitioner has approached this Court assailing the circular dated 01.07.2016 as updated on 31.07.2016 issued by the respondent no.1 pertaining to classification of accounts as fraud accounts. The petitioner also assails the consequential action of respondent no.2 in declaring the account of M/s Globalite Industries Private Limited as a fraud account, in respect whereof the petitioners are guarantors.
4. The primary submission of learned senior counsel for the petitioner is Signature Not Verified Digitally Signed By:AWANISH CHANDRA MISHRA Signing Date:05.01.2023 12:10:48 that till date, the petitioners have not been issued any show cause notice and therefore, no action in pursuance to the decision taken by respondent no.1 to declare the bank account of M/s Globalite Industries Private Limited as fraud account, could have been initiated against them.
5. Issue notice. Learned counsel for the respondents accept notice.
6. Learned counsel for respondent no.2 is, however, not in a position to inform this Court today as to whether the petitioners' plea that they were not even issued any show cause notice before initiation of any action against them, is correct or not.
7. In these circumstances, this Court has no other option except to adjourn the matter by granting six weeks' time to the respondents to file their counter affidavit and reply to the application. Rejoinder thereto, if any, be filed within six weeks' thereafter. Consequently after taking into account the petitioner's unrebutted plea, it is directed that till the next date, no coercive action in pursuance to the decision taken by respondent no.1 in declaring the account of M/s Globalite Industries Private Limited as fraud account will be initiated against the petitioners.
8. It is, however, clarified that, in the interregnum, the respondents would be free to issue a show cause notice, and give necessary hearing to the petitioner, if they are inclined to do so. If such a measure is taken, a reasoned order shall be passed as per law, which shall be communicated to the petitioner. It is further made clear that this order would not preclude the respondents from continuing/ initiating/ filing any complaint/proceedings against the petitioners, as Signature Not Verified Digitally Signed By:AWANISH CHANDRA MISHRA Signing Date:05.01.2023 12:10:48 per law, independent of the impugned order.
9. List on 15.05.2023.
REKHA PALLI, J JANUARY 4, 2023 kk Signature Not Verified Digitally Signed By:AWANISH CHANDRA MISHRA Signing Date:05.01.2023 12:10:48