PUNJAB NATIONAL BANK Vs. SATINDER KAPUR

JUDGEMENT

(1.) The present writ petition has been filed under Article 226 of the Constitution of India. The prayer in the petition seeks a quashing of the order dated 02.9.2011 and a subsequent order dated 22.9.2011 passed by the Debt Recovery Appellate Tribunal (DRAT). The aforenoted two orders were passed on the review applications preferred by the appellants before the DRAT seeking quashing of the original orders dated 04.11.2010 and 22.11.2010. These review applications had been dismissed. The petitioner bank is aggrieved by the aforenoted orders.

(2.) Respondent no.1 (Satinder Kapur/buyer) was a director of M/s Indian Magnetic (hereinafter referred to as the respondent no.2), a company incorporated under the Indian Companies Act.

(3.) On 13.6.1992 respondent no.1 entered into a buy back agreement with M/s PNB Capital Services Limited (hereinafter referred to as the subscriber) a company registered under the Indian Companies Act, 1956. The said company subscribed to the equity shares of respondent no.2 in terms of the said buy back agreement. In case of failure or default on the part of the buyer to buy back the equity shares as stipulated in the agreement, the subscriber was entitled to file a suit for specific performance or in the alternate to sell the entire holding of 10,00,000 shares as were held by the subscriber in the open market.