SURESH KUMAR PATNI Vs. STATE BANK OF INDIA
HIGH COURT OF CALCUTTA
Suresh Kumar Patni
STATE BANK OF INDIA
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Rajasekhar Mantha,J. -
(1.)The writ petitioners are aggrieved by order/communication dated 20th March, 2021 issued by the Review Committee/ Second Committee, respondents declaring them Wilful Defaulters. Prior thereto on 7th June, 2019 the Wilful Defaulter Identification Committee (WDIC)/First Committee in terms of the Master Circular of the Reserve Bank of India on Wilful Defaulters dated 1st July, 2015 (vide no. RBI/2015- 16/100DBR.No.CID.BC.22/20.16.003/2012-16) identified the petitioners as Wilful Defaulters on, inter alia, the grounds that:-
a) The petitioners defaulted in meeting payment/repayment obligations to the Bank, even though they had the capacity, to do so.
b) The petitioners have not utilised the finance from the lender for the purpose for which it was availed. The petitioners have diverted funds for other purposes.
c) Short term working capital funds have been utilised for long term purposes.
d) Investments were made in other companies by acquiring equity without approval of the bank.
e) The petitioners have siphoned off funds without using the same for the purpose of which funds were availed.
(2.)Against each of the aforesaid allegations the evidence and documents relied upon to substantiate, wilful default were the audited Balance Sheets of M/s Rohit Fero Tech Limited (Principal Debtor) for the year ending 31st March, 2016, 31st March, 2017and 31st March, 2018.
(3.)In reply thereto on 9th July, 2019, Advocates acting for the petitioners and the principal borrower purported to show cause. The petitioners also asked the bank to disclose all evidence before the said Wilful Defaulter Identification Committee (WDIC). The bank by communication dated 16th August, 2019 replied to the cause shown by the petitioners. The petitioners through their Advocates replied to the said reply on 9th September, 2019. By a letter dated 9th December, 2019 the WDIC offered a personal hearing to the petitioners via video conference. The petitioners were required to come to the video conferencing room at Bank's Branch in Kolkata at Middleton Street at 1 p.m. on 30th December, 2019.
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