RAJESH EXPORT LIMITED Vs. IDBI BANK LIMITED

JUDGEMENT

(1.) The petitioner filed the present writ petition for a writ of certiorari to quash the impugned letter dated 01.02.2018 bearing No.IDBI(BL)/MCG/743/REL, vide Annexure-A, as illegal and void and for a writ of mandamus to direct the respondent to appoint an independent auditor to audit the accounts and arrive at a correct and genuine balance payable by the petitioner to the respondent.

(2.) It is the case of the petitioner that it is one of the most respected corporate of India and a listed company comprising of several thousand share holders. It has an immaculate track record in its dealings with various banks for more than thirty years and is a winner of several awards from various institutions and Governments for its sterling business performance. The petitioner company has placed huge fixed deposits with various banks in the country. The annual financial report of the petitioner company which is a statutorily audited publicly available document clearly establishes more than satisfactory and sound financial position. The petitioner had a substantial business dealings with the respondent bank for a period of about ten years. During the month of October 2017, the respondent bank, due to its internal situation, was not in a position to provide the required financial service to the petitioner company and hence both the parties mutually decided to terminate the business relationship. Accordingly petitioner company decided to clear off the entire balance due to the respondent bank.

(3.) It is further case of the petitioner that the Company s books are statutorily audited and arrived at balance payable to the respondent bank at Rs.79,84,95,986/- as on 17.02.2018. After verifying all the accounts, a qualified Chartered Accountant of the petitioner company, also confirmed the said amount. The petitioner company was immediately ready and willing to make payment of the correct balance of Rs.79,84,95,986/- to the respondent bank to clear all the outstanding balances and close the account. The respondent bank demanded various different balances at different times which are much higher than the actual outstanding balance of Rs.79,84,95,986/-. The respondent bank, by letter dated 11.01.2018 informed the petitioner that the total outstanding balance was Rs.125,60,18,296/-. On 15.02.2018, the respondent bank directed the petitioner to make payment of Rs.178,61,32,115/- failing which severe action would be initiated. On 17.02.2018, the respondent bank informed the petitioner that as per the latest calculation, the total balance payable was Rs.137,22,25,086/-. It clearly indicates that the respondent bank does not have control over it s accounting system due to which it is demanding different balances at different times even though there has been no transactions between the parties from 01.01.2018 onwards.