CANARA BANK Vs. IQ CITY FOUNDATION

JUDGEMENT

(1.) These appeals at the instance of the Canara Bank and Bank of Baroda are directed against the interlocutory order of the learned Single Judge dtd. 18/11/2021 passed in WPA No. 17088 of 2021 directing the Reserve Bank of India (in short, 'RBI ') to look into the matter by appointing an independent Auditor.

(2.) In nutshell, the respondent Nos. 1 and 2 (writ petitioners) had filed the writ petition with the plea that the respondent No. 1 had obtained the credit facility amounting to Rs.210.00 Crores and that the credit facility was jointly funded by the appellant banks along with the Axis Bank Limited. On account of certain restrictions, the cash flow of the writ petitioners was affected resulting in financial distress. The writ petitioners had approached the Court with the grievance relating to charging of excessive interest on the credit facility.

(3.) Learned Single Judge by the order under challenge has directed the respondent, RBI, to appoint an independent Auditor of its choice for the purpose of conducting an audit and assessment of the credit facility and as to the propriety and legality of the penal interest levied by the appellant banks in respect of the writ petitioner 's organization. Further direction has been issued to prepare and file the Auditor 's report within 5/1/2022.