DELHI DEVELOPMENT AUTHORITY Vs. SKIPPER CONSTRUCTION

JUDGEMENT

(1.) This court had passed an order on 11.2.1997 in this Special Leave Petition, directing an Inquiry Committee to be set up by the governor, Reserve Bank of India (RBI) to go into the circumstances under which bank guarantees were issued by the New Bank of India (now merged with the Punjab National Bank) and Canara Bank in favour of D.D.A. concerning the transactions of Skipper Construction Company. Pursuant to the order, the RBI has given a Report dated 9.5.1997, copies of which have been furnished to the affected parties. It is sufficient to refer to the fact that the RBI has placed certain responsibility for the transactions aforesaid on the Chairman and Managing Director of the then New Bank of India, Shri R.C. Suneja. In the light of the observations of the RBI the question arises, as to what orders have to be passed with regard to Shri R.C. Suneja. The RBI has also stated that action can justifiably be contemplated once "loss" to the banks is established and crystalised.

(2.) For the aforesaid purposes, it has become necessary to go into the question as to whether the then New Bank of India has sustained any loss on account of the bank guarantees given by it to the D.D.A. on behalf of the Skipper Construction Company. The question has to be decided in the light of the earlier orders of this court and, in particular, the Judgement of this court in D.D.A. vs. Skipper Construction Company Pvt. Ltd., 1996 4 SCC 622 and also in the light of the terms of the contract between Skipper Construction Company and D.D.A. and the other respective parties thereto.

(3.) A contention has been raised on behalf of the D.D.A. that the question of deciding the inter se liabilities between Skipper Construction Company and D.D.A. has already been concluded by earlier orders of this court and the same cannot be reopened. On the other hand, it has been contended by learned senior counsel, MR.M.L. Verma, appearing for Skipper Construction Co. and also the learned senior counsel, MR.M.N. Krishnamani, appearing for MR.R.C. Suneja, former C.M.D. of the then New Bank of India, that these issues have not so far been adjudicated with reference to the terms of the contract and the D.D.A. and the Skipper Construction Company.