FAROOQ ALI KHAN Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The petitioner is before this Court seeking a slew of prayers and in effect seeking to quash minutes of the 22nd meeting of the Committee of Creditors of Associate Dcor Limited held on 21/12/2022 as non est and illegal and other prayers are sequel to the said prayer. This Court, accepting certain of the prayers of the petitioner had allowed the writ petition in part, in terms of its order dtd. 21/11/2023. Subsequent developments took place and while answering review petitions, this Court recalled the order so passed on 21/11/2023 in Review Petition No.573 of 2023 c/w 574 of 2023 in terms of its order dtd. 28/2/2024. Therefore, the matters are heard afresh, in the light of the order passed in the review petitions on 28/2/2024.

(2.) Heard Sri S. Basavaraj, learned senior counsel for Sri Sivaramakrishnan M.S., learned counsel for the petitioner; Sri S.S.Naganand, learned senior counsel for Sri Lomesh Kiran N., learned counsel for respondent Nos.1 to 3; Smt. Lakshmy Iyengar, learned senior counsel for Sri Ajay Rao, learned counsel for respondent No.4; Sri Sajjan Poovayya, learned senior counsel for Sri M. Nikilesh Rao, learned counsel for respondent No.5 and Sri Tushar Mehta, learned Solicitor General of India for respondent Nos.6 to 9.

(3.) The facts, in brief, adumbrated are as follows:- Between 2007 and 2011 a Company in the name and style of Associate Dcor Limited (hereinafter referred to as 'the Company' for short) is established to be in the business of manufacture of wood products, particle boards, laminates and other wood panel products. Between 2010 and 2015 the Company requested the 1st respondent/Punjab National Bank to grant a term loan and other several credit facilities for the purpose of meeting its capital expenses and working capital requirement. The consortium of Banks i.e., respondents 1, 2 and 3/Punjab National Bank, Union of Bank of India and Bank of Baroda granted about 582 crores to the Company to which the petitioner had executed further term loan agreements by offering huge collaterals as security in favour consortium of Banks. In the year 2016 various disputes arose inter se between the promoters of the Company on account of unexpected changes in the market and Company's operations resulting in irregular loan repayments and categorization of account of the Company in the Banks as a Non Performing Asset ('NPA' for short).