JAGDISH PRASAD SABOO Vs. IDBI BANK LIMITED

JUDGEMENT

(1.) In the present writ petition, the petitioner, being aggrieved of the order dtd. 12/5/2022 passed by the Wilful Defaulter Identification Committee (WDIC), order dtd. 30/8/2022 passed by the Wilful Defaulter Review Committee (WDRC) and also the impugned communication dtd. 16/5/2022, by which the petitioner is declared "Wilful Defaulter" has been assailed. Thus, the petitioner is assailing the action of declaring him as a Wilful Defaulter.

(2.) The respondent-IDBI Bank Limited is a part of consortium of the banks being Canara Bank, Bank of Baroda, including E-Dena Bank, Andhra Bank (now Union Bank of India) and IDBI Bank. The consortium of the banks is led by Canara Bank. The petitioner was the Director of a Company Surya Exim Ltd. (SEL), which was incorporated in the year 28/6/1989 and was engaged in the business of trading, including grading of various items like graded non-coking steam coal, POY chips, POY/FDY Yarn, Pet Films etc. Earlier it was known as Prestige Marketing Limited and later, the name was changed to Surya Exim Limited (SEL) from 13/9/2002. Due to inadequate cash- flows, on account of non-realization of trade receivables, the account of the company - SEL turned into a Non-Performing Asset (NPA) in the books of various consortium members banks, including the respondent-Bank. Such account of the petitioner was declared as NPA by the consortium members in the month of August 2019, more particularly by the respondent-IDBI on 18/8/2019. The account of SEL was red-flagged on 9/10/2019 and internal investigation was carried out by Canara Bank and an internal investigation report dtd. 13/2/2020 was made by the consortium. The Forensic Auditor was appointed by Canara Bank to carry out a forensic audit of the account of SEL. After such audit was carried out, Forensic Audit Report (FAR) was issued on 8/7/2020, which was conducted by SKVM and Co. A show-cause notice dtd. 28/5/2021 was issued by the respondent-IDBI, through its Deputy General Manager for declaring the petitioner amongst others persons, as a Wilful Defaulter. The petitioner replied to the show-cause notice on 17/6/2021 and thereafter also, on 13/8/2021. Finally, the petitioner replied vide letter dtd. 22/9/2021 to the communication dtd. 6/9/2021, written by the respondent-IDBI. Thereafter, WDIC vide its order dtd. 13/12/2021, declared the petitioner as a Wilful Defaulter.

(3.) Learned advocate Mr.Aditya Gupta appearing for the petitioner at the outset, has submitted that the impugned orders are required to be quashed and set aside since FAR of the SKVM and Co. dtd. 8/7/2020 was never supplied to the petitioner. It is submitted that the petitioner had time and again requested the respondent to supply the FAR however, the same was not supplied and the Committees have declared the petitioner as a Wilful Defaulter. He has submitted that the similarly, the WDRC, without appreciating the contents of the letter/ communication dtd. 9/7/2022, has confirmed the findings of the WDIC. It is submitted that the order passed by the WDIC is absolutely unreasoned order.