Unjustified refusal to release funds under FDRs is violative of fundamental rights and illegal.

JUDGMENT

Dharam Chand Chaudhary, J. - The petitioner is a private limited company, incorporated vide certificate Annexure P-1. Shri Sumit Khanna, through whom this writ petition has been filed and his wife Rashi Khanna are its Directors as is apparent from the resolution Annexure P-2. The department of industries, Government of Himachal Pradesh vide Annexure P-3 has approved the project proposal qua setting up the industrial enterprises "Poultry feed and processing of broiler Meat manufacturing unit along with slaughter House" at Village Bijapur, Tehsil Amb, District Una, Himachal Pradesh in favour of the petitioner.

2. Admittedly, five FDRs Annexure P-4 (colly.) in the sum of Rs.10,00,000/- (ten lacs) each are prepared in the name of the petitioner-company and already matured for payment on 17.2.2019. The petitioner in order to set up its unit needs finances and for that approached the respondent-Bank to release the amount under the FDRs in its favour, besides, having applied for sanction of loan also. The complaint is that the respondent-bank despite repeated requests failed to release the amount under the FDRs, in favour of the petitioner. The representation Annexure P-5 and legal notice Annexure P-6 also came to be issued in favour of the respondent, but of no avail, hence this writ petition filed with a prayer to issue a writ of mandamus to release the amount under the Fix Deposit receipts Annexure P-4, dated 17.11.2017 issued by the respondent bank, together with upto date interest.

3. The response to the writ petition, by way of preliminary objections in a nut-shell is that the writ petition is not maintainable as the petitioner has concealed material facts from the Court. The FDRs are stated to be not prepared by the petitioner from its own funds and rather from the funds of M/s Sumit Enterprises. The petitioner is also stated to be guilty of illegal diversion of funds in connivance with his family members. Directors of the petitioner Company Sumit Khanna in connivance with his wife Rashi Khanna, his friend Pradeep Singh Jamwal and Anita Seth has cheated the respondent-Bank and also the other banks. A complaint has, therefore, been stated to be made to Superintendent of Police, Central Bureau of Investigation, Anti Corruption Branch, Shimla on 16.1.2019, for registration of case against the petitioner qua fraud of crores of rupees i.e. 546 lacs having taken place in Bathu Branch of the bank. It is however, admitted that the petitioner-company has two Directors i.e. Sumit Khanna and Rashi Khanna. They are husband and wife in relation. The petitioner-Company had not taken any loan from the respondent-Bank. Five FDRs amounting to Rs.10,00,000/- are stated to be in the name of petitioner-Company, which have been prepared out of the funds of M/s Sumit Enterprises, a proprietorship firm of Sumit Khanna. Various loans raised by the so called friends Anita Seth and Reena of Sumit Khanna have been referred to in the preliminary submissions. Similarly, various transactions of transfer of funds in the account of Shivam Seth, Rashi Khanna, Pradeep Singh Jamwal, M/s Sumit Enterprises etc. etc. have also been pointed out. The preparation of FDRs amounting to Rs.50,00,000/- fifty lacs is stated to be on account of huge illegal/unexplained transfer of funds.

4. On merits, it is submitted that the petitioner is a private limited company incorporated under the provisions of Companies Act. It is denied for want of knowledge that the petitioner intend to set up its unit at Village Bijapur, Tehsil Amb, District Una. The FDRs are stated to be not prepared from the funds in the account of the petitioner-Company and rather from the funds in the account of M/s Sumit Enterprises. The date of maturity of the FDRs i.e. 17.2.2019 has not been disputed. It is also submitted that no act of respondent-Bank is illegal unreasonable, and irrational. The writ petition has been sought to be dismissed.

5. In rejoinder, the petitioner has controverted the co