Arindam Mukherjee, J. - (1.) Gaurav Dalmia and Raghu Hari Dalmia two of the promoters and directors of Pro Minerals Pvt. Ltd.( hereinafter referred to as the said 'company') filed two separate writ petitions being W.P. No. 24911(W) of 2018 and W.P. No. 24912 (W) of 2018 respectively challenging the decision of the Review Committee of Axis Bank Ltd. constituted under Clause 3(c) of the Master Circular on wilful defaulters issued by the Reserve Bank of India on 1st July, 2015 (hereinafter referred to as the said 'Master Circular). The facts of the two cases and the grievances of the two writ petitioners are identical. Both the two writ petitions were dismissed in the same line giving rise to two separate appeals being MAT No. 2 of 2019 (Gaurav Dalmia vs. Reserve Bank of India & Others) and MAT 1 of 2019 (Raghu Hari Dalmia vs. Reserve Bank of India & Others). We, therefore, propose to dispose of both the appeals by a common judgment.
(2.) The said company availed diverse financial assistance from a consortium of bank headed by Bank of Baroda (in short 'BOB'), the lead bank. Axis Bank is one of the members of the consortium.
(3.) Records reveal that the said company as part of its project for which it availed the loans had to set up a 20MW Captive Power Plant (in short 'CPP') for which the total project cost was Rs. 109.41 crores and a term loan of Rs.72.57 crores was sanctioned for the same under the second term loan. The said company on finding that electricity was available from an alternative source, i.e., 33kv transmission line did not set up the CPP and utilized the money received for the same to fund the cost escalation towards mechanical raw material handling system. The diversion of funds is an admitted position and the said company proposed to refund Rs.38.49 crores after adjusting Rs.10.68 crores (excluding promoters contribution of Rs.5.42 crores from Rs.16.10 crores being the project cost to set up 33 KV transmission line) from Rs.49.17 crores drawn on account of CPP. It further appears that the accounts of the company were regular till around December, 2015. Thereafter, in spite repeated requests the loan availed by the said company remained unpaid which resulted in the Company's account to be declared Non-Performing Asset (NPA). Axis Bank, a member of the Consortium of Banks which granted the credit facilities to the said company by a letter dated 5th July, 2016 recalled the credit facilities and requested the said company and the guarantors to repay a sum of Rs. 1,14,59,55,830.39 being the outstanding amount as on 1st July, 2016. Subsequent thereto, the said Axis Bank issued a notice under Section 13(2) of the Securitization And Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (hereinafter the 'SARFAESI Act') demanding a total sum of 1,14 59,55,830.39 being the outstanding dues as on 3rd August, 2016 with interest applied up to 30th June, 2016. The said Axis Bank, thereafter, through its Advocate issued a demand notice on 25th August, 2016.;