VIPUL KANT UPADHYAY Vs. STANDARD CHARTERED BANK

JUDGEMENT

(1.) This is a petition seeking quashing of the summoning order dtd. 8/3/2018 passed by Ld. Sr. Civil Judge, Patiala House Court, Delhi in complaint case bearing CT No. 1504/2018 titled as 'Standard Chartered Bank vs. IAP Company Pvt. Ltd. and Ors.', summoning the petitioner under Sec. 25 of the Payment and Settlement Systems Act, 2007 (hereinafter referred as the PSS Act, 2007).

(2.) The brief facts of the case are that M/S IAP Company Pvt. Ltd. (hereinafter referred as the said company) availed a business loan vide loan agreement no. 50359738 from bank/respondent, in pursuance to the said loan, the bank initiated Electronic Clearing System (ECS) for the payment of Rs.1,81,390.00 (one lakh eighty-one thousand and three hundred ninety rupees only/-). The above said EMI amount got bounced and was returned on 1/12/2017 with the remarks 'Balance insufficient'. Thereafter, the respondent sent a legal notice on 5/1/2018 and further filed a complaint under Sec. 25 of the PSS Act, 2007 against all the Directors and the said company.

(3.) Learned counsel for the petitioner submits that the respondent bank issued a legal notice to the petitioner incorrectly as the petitioner was neither the director nor was involved in day-to-day affairs of the said company at the time of default of ECS and also at the time of issuance of the legal notice.