KIRTILAL RAVCHANDBHAI SANGHAVI Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) In these intra-court appeals the order dtd. 10/2/2022 passed in Special Civil Application No.2518 of 2022 is under challenge whereunder the learned Single Judge has dismissed the Special Civil Application and affirmed the impugned orders dtd. 1/9/2021 (Annexure-N) passed by second respondent, order dtd. 2/2/2021 (Annexure-L), notices / communications dtd. 18/9/2021/ 28/8/2020 (Annexure-O) issued by second respondent.

(2.) Parties are referred to as per their rank before the learned Single Judge. Petitioners are the Ex-Directors of Sanghavi Exports International Private Limited (at present under liquidation) which was then engaged in the business of manufacturing and export of cut and polished diamond and diamond studded jewellary. Said company had availed certain financial facilities from the group of consortium members wherein the Bank of India was the lead bank and second respondent was one of the consortium member. Said company defaulted in repayment of loans and came to be classified as a Non- performing Asset (NPA) by the second respondent. Second respondent has initiated recovery proceedings before the Debt Recovery Tribunal for recovery of dues by filing an application under Sec. 19 of DRT Act. The lead bank has initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act', for short) which is said to have been challenged by the petitioners before the Debt Recovery Tribunal, Ahmedabad.

(3.) The lead bank also initiated insolvency proceedings before National Company Law Tribunal (NCLT) which ordered for liquidating the borrower company and Liquidator came to be appointed. Again the lead bank is said to have initiated proceedings under the SARFAESI Act calling upon the borrower to repay the outstanding amount of 822.30 Crores and challenge to said action is said to be now pending before the Debt Recovery Tribunal-II, Ahmedabad.