IMPORTANT POINT
The court established that access to forensic audit reports is essential for fair proceedings in declaring individuals as wilful defaulters, ensuring adherence to natural justice.

ORDER :

1. Heard Mr S.Rajagopalan, learned counsel appearing on behalf of the petitioners and Mr Srinivas Chitturu, learned standing counsel appearing on behalf of the respondents.

2. The petitioners approached the Court seeking payer as under:

“to issue any writ or order or direction more particularly one in the nature of writ of Certiorari and call for the Records pertaining to Declaration of petitioners vide orders No. SBI/SAMB/SEC/JVK/LRS/2020-2021/287, dated 28th July 2021 passed by Wilful Defaulter Identification Committee (Second Respondent herein) and consequential orders passed vide order dated 23.02.2022 by Wilful Defaulter Review Committee (3rd respondent herein) and quash the aforementioned orders declaring the petitioners as Wilful Defaulters.”

3. The case of the petitioners as per the averments made by the petitioners in the affidavit filed by the petitioners in support of the present writ petition is as under:

(a) The 1st and 2nd Petitioner herein are suspended promoters of Rajvir Industries Limited, a company incorporated under companies act and having Corporate Identification Number L17116TG2004PLC044053 and the Respondent No. 1had classified the account of Rajvir Industries Limited as a Non-Performing Account on 29.06.2014.

(b) Thereafter, the 1st Respondent in the month of September 2019, had filed an application for initiation of Corporate Insolvency Resolution Process (CIRP) of Rajvir Industries Limited with C.P. (IB) No 747/7/HDB/2019. Aggrieved by the same, the Petitioners had challenged the said application on the grounds that the Default date i.e. 29.06.2014 is more than 3 years prior to filing of CIRP application and further by virtue of Section 18 of limitation act the said application for initiation of CIRP is liable to be dismissed.

(c) The Respondent had issued a Show Cause notice dated 14.11.2019 wherein it was cited that the Wilful Defaulter Identification Committee had examined the conduct of the account and utilization of credit facilities.

(d) The 1st petitioner through vide letter dated 27.11.2019, requested the Respondent herein to share the copy of Forensic Audit Report of Chaturvedi & Co, so as to enable the promoters to provide the necessary clarifications and reply. However, the respondent through letter dated 29.11.2019, refused to share the copy of the report stating that the said report is confidential and meant for internal purposes only.

Thereafter, the 1st petitioner had sent a reply letter to the same vide reply letter dated 13.12.2019.

(e) The respondent bank had on 10.08.2020 issued a notice for personal hearing by Wilful Defaulter Identification Committee and the said meeting was scheduled for virtual hearing on 28.08.2020. Thereafter, the 1st petitioner through letter dated 14.08.2020 and in the first hearing on 28.08.2020 has reiterated his request for forensic audit report of Chaturvedi & Co to the 1st respondent.

(f) Petitioner Nos. 1 & 2, vide their letter dated 08.12.2020 requested the respondent bank to grant exemption to the guarantors to loan availed by M/s Rajvir Industries Limited on the ground that they are not involved in the day to day operations of the M/s Rajvir Industries Limited.

(g) Thereafter, the petitioner has attended the hearing scheduled on 22.12.2020 and same request was made by the petitioner to the Wilful Defaulter Committee i.e., to provide the petitioner with the Forensic Audit Report.

(h) Subsequently, the Petitioner vide his letter 01.03.2021 addressed to Respondent, reiterated the contents of their letters dated 13.12.2019, 12.02.2020 and 28.08.2020 and once again requested the Respondent to provide the petitioners with the copy of Forensic Audit Report relied upon by Wilful Defaulter Identification Committee. Along with the said letter, the Petitioner had annexed the ledger account statement pertaining to Standard Chartered Bank Payment and receipts for the financial year 2017-2018 and 2018-2019.

(i) More so, as per the said ledger account pertaining to Sta