HUSSAIN KHAN Vs. STATE OF M P

JUDGEMENT

(1.) The petitioners have filed the present petition being aggrieved by show-cause notice dated 19.6.2017 (Annexure P/5).

(2.) The petitioner No.1 is a company registered under the provisions of Companies Act, 1956. Petitioner No.2 is Director of petitioner No.1 company. Respondent No.1 is Government owned public sector bank viz. State Bank of India having its branches throughout the country. Respondent No.2 is a Committee constituted under the Circular of Reserve Bank of India (RBI) for the purposes of identifying wilful defaulters. Respondent No.1 vide letter dated 20.12.2016 sanctioned the term loan of Rs.150.00 Crores to petitioner No.1 on certain conditions. In order to secure the loan, petitioners have mortgaged certain properties by way of security.

(3.) On 30.9.2016, respondent No.1 filed Original Application u/s. 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 before the Debt Recovery Tribunal, Jabalpur. According to petitioners, in the said application, respondent No.1 has never made any allegation that the petitioner No.1 is a wilful defaulter. The petitioners are contesting the said application by filing reply as well as counter claim. After a period of 4 years from the date of declaring petitioner No.1's account as NPA, respondent No.1 issued the show-cause notice dated 19.6.2017 proposing to declare petitioner No.1 as wilful defaulter. By the said showcause notice, petitioners have been given liberty to submit a representation before the respondent No.2 on the next date of hearing.