ISHWARI PRASAD TANTIA Vs. IDBI BANK LTD

JUDGEMENT

(1.) The writ petitioners have filed the instant application under Article 226 of the Constitution of India praying for a mandamus commanding the respondents to remove the names of the petitioners from the list of wilful defaulters and for setting aside the order dated October 13, 2020 passed by the Wilful Defaulters Review Committee.

(2.) The facts giving rise to the instant writ petition are as follows - Tantia Construction Ltd. (for short 'TCL') is a public limited company incorporated under the Companies Act, 1956. A corporate insolvency resolution process was instituted against the company by the State Bank of India being the lead bank by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for short 'IBC'). The resolution plan submitted by M/s. EDCL infrastructure limited and M/s. US Construction Private Limited was approved by the National Company Law Tribunal, Kolkata Bench by its order dated February 24, 2020. In the meantime, the respondent no. 1 issued a show cause notice dated November 19, 2019 to the promoters/ directors of TCL. The petitioners replied to the show cause notice and appeared before the Wilful Defaulters Committee on December 27, 2019 for a personal hearing. The Wilful Defaulters Committee in its meeting held on March 11, 2020 declared the petitioners as wilful defaulters. The petitioners made representations against the aforesaid decision classifying them as wilful defaulters. The written representation received from the petitioners as well as the response of the Department was placed before the Wilful Defaulters Review Committee in its meeting held on August 27, 2020. The Review Committee by an order dated October 13, 2020 held that the petitioners are fit to be declared as wilful defaulters and their names are to be forwarded to Credit Information Companies and other actions to be initiated as specified in RBI circular.

(3.) The writ petitioners are aggrieved by the decision of the Wilful Defaulters Review Committee in classifying them as wilful defaulters.