VISHAMBHAR SARAN Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The petitioner has challenged a complaint dated June 18, 2021made against him by the respondent no.1-Punjab National Bank (PNB). The Central Bureau of Investigation (CBI) registered a First Information Report (FIR) on August 18, 2023 on the basis of the said complaint. It is contended by learned counsel for the petitioner that the premise of the complaint was the Master Circular on Wilful Defaulters issued by the Reserve Bank of India (RBI) on July 1, 2015 which contemplates, as a consequence of declaration of a person/unit as wilful defaulter, that the Bank/financial institution lodges a complaint against the borrower-entity. Learned counsel for the petitioner, by placing reliance on the allegations made in the impugned complaint, argues that the genesis of the same was entirely the declaration of the petitioner as wilful defaulter under the RBI Master Circular and not general criminal law, that is, the Criminal Procedure Code (CrPC) or the Indian Penal Code (IPC).

(2.) However, it is contended that subsequent to the lodging of the complaint, the declaration of wilful defaulter was challenged by way of a writ petition bearing WPO No. 291 of 2021 which was disposed of by granting liberty to the petitioner to approach the Review Committee (RC) under the Master Circular.

(3.) However, the Wilful Defaulter Identification Committee (IC) suo motu recalled its order dated May 29, 2021, whereby the petitioner was declared as a wilful defaulter, vide order dated November 9, 2022. In the said order, the IC noted the Transaction Audit Report (TAR) dated August 24, 2018 was the basis on which a complaint had been lodged against the petitioner for alleged preferential and undervalued transactions. On July 25, 2019, the National Company Law Tribunal (NCLT) rejected the plea of the liquidator against the petitioner in respect of the said transactions. The National Company Law Appellate Tribunal (NCLAT) affirmed the order of the NCLT on September 30, 2019. Thus, it was noted by the IC that in view of the said orders the wilful defaulter proceedings was dropped against the borrower company, the petitioner and another with liberty to the PNB Zonal Sastra to re-examine the wilful default aspect on the basis of independent documentary evidence (apart from the TAR), if any, which proves wilful default as per the RBI Master Circular.