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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
REVATI MOHITE DERE, DR. NEELA GOKHALE, JJ.
Ankit Bhuwalka Erstwhile Director Of Bhuwalka Steel Industries Limited – Appellant
Versus
Idbi Bank Limited Acting Through Chief General Manager / Authorized Signatory – Respondent
Judgment:
(Per Dr Neela Gokhale J.)
1) Rule. Rule made returnable forthwith. With consent of the parties the matter is taken up for final hearing.
2) The Petitioners seek quashing of Show Cause Notice (‘SCN’) dated 5th April 2023 issued by the Respondent No.1-Bank and Order dated 14th September 2023 issued by the Wilful Defaulter Committee of the Bank. He also assails the subsequent Order dated 25th October 2024 passed by the Wilful Defaulter Review Committee (‘WDRC’) and Order dated 13th June 2024 issued by the Wilful Defaulter Committee (‘WDC’).
3) The Petitioner is the erstwhile Director of the company known as Bhuwalka Steel Industries Limited (“BSIL”). Pursuant to a resolution of BSIL, under the Insolvency and Bankruptcy Code, 2016 (‘IBC’), the company came under the control of a new management. The Petitioner is essentially aggrieved by orders passed by the Respondent No.1 declaring him as Wilful Defaulter on the basis of a Transaction Audit Report (‘TAR’) prepared by one M/s. G.D. Apte & Co. at the behest of the erstwhile Resolution Professional (‘RP’) of BSIL. His main grievance is that he was deprived of a substantial opportunity of being heard inasmuch as the documents on the
The declaration of a wilful defaulter must adhere to principles of natural justice, requiring access to relevant documents for a meaningful defense.
The central legal point established in the judgment is the significance of following the prescribed procedure, including the issuance of a show cause notice and opportunities for representation, in t....
The central legal point established in the judgment is the requirement for banks to follow a specific procedure, including issuing a show cause notice, granting a personal hearing, and passing a reas....
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