BIRLA TYRES LIMITED Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) This appeal at the instance of the writ petitioner is directed against the order of the learned Single Judge dtd. 9/7/2021 whereby WPA 10637 of 2021 has been dismissed.

(2.) Appellant had approached the Writ Court with the plea that against respondent no. 3, there was a term loan of working capital outstanding before demerger on 31/12/2018. A part of the said amount was transferred to the appellant's books on demerger with effect from 1/1/2019. The appellant had the current account and also cash credited account with the respondent no. 2 bank and as per the averments made in the petition, on 30/4/2021, the appellant had transferred Rs.3.73 crores in the current account and had made a request to the respondent no. 2 to transfer a sum of USD 5, 00, 000 to a third party to meet its business commitment but the respondent no. 2 had debited the sum of Rs.3.73 crores and also Rs.17.00 lakhs from the current account and had subsequently adjusted to the cash credited account. The account of the appellant was classified as non-performing asset (NPA) with effect from 30/9/2020 without taking into account COVID relief package. Hence, in the writ petition, the appellant had made a prayer to refund Rs.3.90 crores to the account and also to recall/rescind the notices issued by the respondent no. 2.

(3.) Learned Single Judge while passing the order under appeal has taken the view that the proceedings against the respondent no. 2 bank under Article 226 of the Constitution is not maintainable and the petition involves disputed questions of fact and that there is no public element involved. Taking note of the fact that the bank had already instituted proceedings under the Insolvency and Bankruptcy Code, 2016, the learned Single Judge has dismissed the petition.