ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED, CHENNAI 600 034 REP. BY ITS MANAGING DIRECTOR, K. RAGHAVENDRA RAO Vs. RESERVE BANK OF INDIA, MUMBAI

JUDGEMENT

(1.) A Public Limited Company and its Chairman-cum-Managing Director, have come up with two writ petitions each, challenging in one set of writ petitions, the Resolutions of the Grievance Redressal Committee of the second Respondent Bank to declare the petitioners as wilful defaulters and challenging in the second set of writ petitions, the threat issued by the second Respondent Bank to publish the photographs of the Chairman and Managing Director as well as the guarantor in newspapers as wilful defaulters.

(2.) Heard Mr.P.S.Raman, learned Senior Counsel appearing for the writ petitioners, Mr.AR.L.Sundaresan, learned Senior Counsel appearing for the second Respondent and Mr.S.Sethuraman, learned counsel appearing for the third Respondent.

(3.) The petitioners availed an Invoice Bill Discounting facility to the extent of Rs. 40 Crores from the second Respondent Bank, against supplies to be made to two customers of the petitioners. This happened in the year 2011. Under the terms and conditions of the sanction of loan, the facility was to be used exclusively for the purpose of supplying Pharma ingredients to two named companies and that the receipts under the Invoices were to be utilised for the repayment of the dues.