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IN THE HIGH COURT AT CALCUTTA
DEBANGSU BASAK, PRASENJIT BISWAS
Bank of Baroda – Appellant
Versus
Prashant Bothra – Respondent
JUDGMENT :
DEBANGSU BASAK, J.
Contents
| Preface Contentions of SFIO Contentions of Private Respondents Issues Events Analysis on Issue No. 1 -Sections 211, 212 and 447 of the Companies Act, 2013 -Memorandum dated February 22, 2022 -SFIO and its actions Answer to Issue No. 1 Analysis on Issue No. 2. -Tools of Recovery -NPA and its impact -Application of Ratio of Rajesh Agarwal (supra) -Master Directions on Frauds -Civil and Criminal liability of banking transaction Answer to Issue No. 2 Issue No. 3 Epilogue |
Preface
1. Two appeals have been heard analogously as they emanate out of the same impugned judgment and order dated September 5, 2024 passed by the learned Single Judge in WPA 25668 of 2022.
2. Bank of Baroda has filed MAT 1889 of 2023 while Union of India and its functionaries have filed MAT 1823 of 2023 assailing the same impugned judgment and order.
3. Bank of Baroda had, sought leave to withdraw its appeal on July 17, 2025 when, after observing that Bank of Baroda is the lead banker of a consortium of bankers who lent and advanced various credit facilities to the borrower company, we postponed the decision on the request of Bank of Baroda not to proceed with their appeal.
Contentions of
The SFIO has the authority to issue a Look Out Circular during fraud investigations under the Companies Act, and principles of natural justice do not apply to criminal complaints regarding fraud.
The court upheld that the SFIO can issue Look Out Circulars during investigations under Section 212 of the Companies Act, even without prior fraud classification of the borrower's account, emphasizin....
The Reserve Bank of India's guidelines do not confer jurisdiction upon the CBI to investigate bank fraud without prior state consent as mandated by the Delhi Special Police Establishment Act.
(1) Loan frauds – Consistent with the principles of natural justice, lender banks should provide opportunity to a borrower by furnishing a copy of audit reports and allow borrower a reasonable opport....
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