TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 861
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....acility provided to the petitioner no.1. The petitioner no.1 had also been granted separate Bill Discounting Facility by the respondent no.2 . Further case of the petitioner no.1 is that from time to time the limit of the above Credit Facilities were extended. With regard to the Bill Discounting Facility, certain amount became due owing to the failure of the buyers to make payment to the petitioner no.1. However payments were assured to the respondent no.2. On 8th March, 2014 and 27th March, 2014 towards the dues in the Bill Discounting Facility account securities were created in favour of the respondent no.2 and the said respondent no.2 was duly intimated by a letter dated 8th March, 2014 and 27th March, 2014. It is also stated that although the securities were furnished as above stated the petitioners were shocked to receive two separate letters on 8th May, 2014 respectively dated 2nd April, 2014 and 7th May, 2014 from the respondent no.2 wherein the respondent no.2 had sought to club the two distinct accounts unilaterally although the securities provided for each of the account were different. By this letter for the first time after receiving a security towards the dues of t....
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....en and servants directing them to withdraw the notices dated 19th December, 2014, 4th June, 2016, 20th June, 2016, and 5th July 2016; (c) A Writ of Certiorari do issue commanding the respondent authorities and its men and servants to transmit all records pertaining to the instant case and particularly the letter dated 19th December, 2014, 4th June, 2016, 20th June, 2016, and 5th July 2016; (d) That the same may be quashed and conscionable justice be done. (e) Rule NISI in terms of prayers above; (f) Injunction do issue restraining the respondents from giving any effect or further effect to the letters dated 19th December, 2014, 4th June, 2016, 20th June, 2016, and 5th July 2016; and/or from taking any steps or further steps pursuant thereto; (g) Ad-interim order in terms of prayers above; (h) Such further or other orders as Your Lordships may deem fit and proper. In the backdrop of the above facts and circumstances the following issues need to be determined in this case:- (i)Whether the respondent bank is justified to issue the impugned notice to initiate proceedings to declare the petitioner company as wilful defaulter without giving any opportunity of reas....
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....ubmissions and after considering their submissions issue an order recording the fact of wilful default and the reasons for the same. An opportunity should be given to the borrower and the promoter/whole-time director for a personal hearing if the Committee feels such an opportunity is necessary." 3. It is further submitted by Mr. Ray that without forming any committee the impugned notice dated 4th June, 2016 was arbitrarily issued by the respondent bank. Mr. Ray also stated that without furnishing the documents the impugned notice dated 4th June, 2016 was issued. Mr. Ray further vehemently urged that the Committee which issued the earlier notice dated 19th December, 2014 is not the committee which issued the impugned notice dated 4th June, 2016 but a different committee issued the same. He submitted that the records show that no committee was formed earlier . Mr. Ray further strongly argued that the proposal was signed by the GM and not by or any members of the said committee. It is also stated by Mr. Ray that the General Manager sits at Kolkata and also in other two cities. It is also submitted by Mr. Ray that though the respondent bank from time to time asked the petition....
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.... the dues despite adequate cash flow and good networth; (b) Siphoning off of funds to the detriment of the defaulting unit; (c) Assets financed either not been purchased or been sold and proceeds have been misutilised; (d) Misrepresentation/falsification of records (e) Disposal/removal of securities without bank's knowledge; (f) Fraudulent transactions by the borrower." Mr. Bhattacharya further contended that the notice dated 19th December, 2014 cannot be assailed to be a notice for enlisting the petitioners as wilful defaulter. It was the notice to initiate proceedings. Unfortunately the petitioners never turned up on the basis of the notices. Mr. Bhattacharya also vehemently argued that the present writ petition is a pre-mature one and therefore should be dismissed directing the petitioners to appear before the Wilful Defaulter Identification Committee (WDIC). It is submitted that Master Circular evidence of wilful defaulter have already been furnished to the petitioner therefore, question of violation of natural justice as has been contended by Mr. Ray does not and cannot arise. Mr. Bhattacharya submitted that Wilful Defaulter Identification Committee (WDIC)....
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....land House, 8th Floor, Kolkata-700071 on 19.07.2016 at 11.00 A.M.. 3. Please note that the above opportunity is for making your personal submission, if any in the matter and the Lawyers/Chartered Accountants/Consultants, who are not Partners/Directors/Officers/Employees of the Firm/Company, will not be allowed in substitution of your personal presence and submission before the committee. 4. Please bring your PAN card and other documents to prove your identity and position in the Firm/Company. 5. If you fail to avail the opportunity of personal hearing on the above mentioned place, date and time, it will be presumed that you have nothing to submit before the committee by availing personal hearing. 6. This communication is issued as per the approval and directions of the Committee and without any prejudice to our Bank's all rights and contentions." 7. Therefore, in conclusion Mr. Bhattacharya strongly submitted that the Court should dismiss the writ petition on the sole ground of premature and direct the petitioner no.2 to appear in the hearing as all the notices were issued duly following the existing rules and the petitioners were duly supplied with all documents well....