IN THE HIGH COURT OF JUDICATURE AT MADRAS Reserved on 19.06.2024 Pronounced on 03.07.2024 CORAM :

THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN W.P.No.19572 of 2021 and W.M.P.No.20858 of 2021 Regan Infrastructure and Services Private Limited, Represented by Resolution Professional, Ms.Renuka Devi Rangaswamy ...Petitioner -Vs-

The State Bank of India, Represented by its Chairman/General Manager, Willful Defaulter Identification Committee-II, Stressed Assets Management Branch, Red Cross Buildings, 32, Red Cross Road, Egmore, Chennai-600 008. ...Respondent Prayer : Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari calling for the records leading up to the passing of the impugned declaration dated 23.06.2021 vide Meeting No.2021-22/03 and Agenda Item No.4353 passed by the Respondent and quash the same.

For petitioner : Mr.J.Sivanandaraaj Senior Counsel for M/s.Riddhima Ssharma For respondent : Mr.M.L.Ganesh,

ORDER

This writ petition has been filed challenging the declaration dated

23.06.2021 on the file of the respondent thereby proposed to declare the petitioner as willful defaulter and included the petitioner's name in the Credit Information Company list as willful defaulter.

2. The petitioner company is represented by its Resolution Professional who is appointed by the National Company Law Tribunal, Chennai Bench by order dated 19.02.2020. She is in-charge for the affairs of the petitioner's company. The petitioner provides comprehensive operations and maintenance services that facilitates the functioning of windmills to generate wind energy. The petitioner has been banking with the Respondent Bank for its capital facilities of Cash Credit and Bank Guarantees for its business development. So far, the petitioner had availed loan to tune of Rs.40,00,00,000/- from the respondent. Due to various reasons, the petitioner was not able to honour its obligation to the respondent. Therefore, the account of the petitioner was declared as non-performing assets on 17.10.2018. The respondent approached the Debt Recovery Tribunal-I, Chennai under the Recovery of Debts Due to Bank and Financial Institutions Act, 1993 in O.A.No.447 of 2019. While being so, the petitioner opted for One Time Settlement and accordingly a Joint Memo of Compromise was entered between the petitioner and the respondent on 12.11.2019. Accordingly, if the petitioner committed any default, the respondent can recover the entire amount claimed before the Debt Recovery Tribunal, Chennai. While being so, one of the creditor i.e., M/s.SB Aditya Power Projects Private Limited filed an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (hereinafter called as 'IBC') before National Company Law Tribunal (hereinafter called as 'NCLT') to initiate Corporate Insolvency Resolution Process against the petitioner company on the ground that the petitioner committed default in payment for the services rendered by M/s.SB Aditya Power Projects Private Limited. The NCLT ordered for initiation of Corporate Insolvency Resolution Process (CIRP) against the petitioner company. Thereafter, in terms of Section 9(5) of IBC, Moratorium as envisaged under Section 14 of IBC should be followed in relation to the petitioner company. In which, resolution professional was appointed as Interim Resolution Professional and the same was also confirmed by the Committee of Creditors (hereinafter called as CoC).

2.1. Thereafter, the respondent made claim for a sum of Rs.32,49,90,041.36/- before the Resolution Professional (hereinafter called as RP), since the petitioner committed default in paying the loan amount as per the Joint Compromise memo. The respondent moved application under section 19(25) of the Recovery of Money Under the Recovery of Debts Due to Banks and Financial Institution Act, 1993 (hereinafter called as 'RDDBFI Act'), claiming the entire amount and also prayed for issuance of Debt Recovery Certificate (DRC). Further, the responde