ANIL KHEMANI Vs. AXIS BANK LIMITED

JUDGEMENT

(1.) This Writ Petition challenges the Show Cause Notice dtd. 6/9/2025 issued by Respondent No.1 and the Order dtd. 16/10/2025 passed by Respondent No.1 declaring Respondent No.2 as fraud. The Petitioners are the erstwhile Directors of Respondent No.2. At the outset, we must note that though the above Show Cause Notice was addressed to the Petitioners, the impugned Order does not declare the Petitioners as fraud and only declares Respondent No.2 Company as fraud. We, therefore, seriously doubt whether the Petitioners can maintain the present Petition in their name when Respondent No.1 Bank has declared the account of Respondent No.2 Company as fraud and when it has already undergone a successful Corporate Insolvency Resolution Process and a Resolution Plan has already been approved for it by the NCLT vide its Order dtd. 10/9/2025. Notwithstanding the aforesaid, and so that the Petitioners do not raise any grievance regarding being non-suited in the present Writ Petition, we have heard them on merits.

(2.) On 22/6/2020, Respondent No.1 took over from SBI credit facilities aggregating to Rs.23.01 Crores granted to Respondent No.2.

(3.) On 17/11/2022, Respondent No.2 clandestinely opened a Bank account with Nashik Merchant Co-operative Bank Limited ("NMCB") without informing Respondent No.1. This is admitted by Petitioner No.1.