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State Bank Of India vs M/S. Jah Developers Pvt. Ltd. on 8 May, 2019

12. Placing reliance upon a decision of the Hon'ble Supreme Court of India in Civil Appeal No.4776 of 2019 (State Bank of India v. Jah Developers Pvt. Ltd.), decided on 8-5-2019, Mr. Dhond would submit that this circular contemplates a speaking order being passed. The impugned decision fails to satisfy that test for the simple reason that it is unreasoned. First of all, its title reads "Without Prejudice". The prejudice and bias is writ large on it. It includes the name of the Company and its Promoter-Director, Mr. Nitin Shah and Whole- time Directors Mr. Rahul Shah and Mr. Kunal Shah in the list of wilful defaulters. Mr. Dhond would submit that this decision has been reached without even bothering to deal with the Page 14 of 40 ::: Uploaded on - 01/08/2019 ::: Downloaded on - 14/04/2020 20:22:03 ::: suresh 914-WPOJ-1825.2019.doc submissions and explanation placed on record. Mr. Dhond has, for instance, taken us through the annexures to this petition to urge that there are no reasons in the impugned order but one can turn to the allegations in the Show Cause Notice to appreciate the stand of the petitioners before us. The petitioners do not admit the allegations. They gave an explanation to the same in writing which is both bona fide and reasonable. Now, the Show Cause Notice is founded on the FAR. However, the first respondent itself terms this a draft FAR. If indeed it was a draft, then, no recommendation much less an opinion therein can be said to be conclusive. In fact the joint lenders and the petitioners do not admit this to be a final report.
Supreme Court of India Cites 31 - Cited by 199 - R F Nariman - Full Document
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