W.P.(C)/15067/2024 of SOWMYANARAYANAN RAJAGOPALAN Vs IDBI BANK LIMITED

* IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 15067/2024

SOWMYANARAYANAN RAJAGOPALAN .....Petitioner Through: Mr. Yogendra Aldak, Mr. Pranav Mundra and Mr. Balraaj Singh, Advs.

versus

IDBI BANK LIMITED

.....Respondent Through: Mr. Sidhartha Barua and Mr. Anuraag Mehta, Advs.

CORAM:HON'BLE MR. JUSTICE DHARMESH SHARMA

O R R% 25.10.2024

CM APPL. 63160/2024 (Ex.)

1.Allowed, subject to all just exceptions.

2.The application stands disposed of.

W.P.(C) 15067/2024 and CM APPL. 63161/2024 (Stay)

3.The petitioner is invoking the writ jurisdiction of this Court and is assailing the impugned order dated 05.08.2024 passed by the respondent, whereby the account of the petitioner has been declared as „Fraud‟.

4.Learned counsel for the respondent is present on advance notice, who invites the attention of this Court to the directions passed in the W.P.(C) No.11519/2024 titled Gautam Malhora v. IDBI Bank Ltd. decided by this Court vide order dated 21.08.2024 in respect of the same company.

5.In nutshell, it submitted by the learned counsel for the

petitioner that before passing the impugned order dated 05.08.2024, the petitioner had not been supplied with the relevant documents which formed the basis of the proposed action, and no opportunity of hearing has been given to the petitioner.

6.In view of the directions, which have been passed in the previous case pertaining to Mr. Gautam Malhotra of the same corporate debtor, who also claimed to be an independent Director, while the petitioner happens to be the whole time Director, the present petition is disposed of with the following directions:-

(i) The SCN dated 06.02.2024 shall stand, however, the respondent/IDBI Bank Limited shall maintain status quo and shall not declare or classify the account of the petitioner as „fraud‟except on reaching decision as provided hereinafter;

(ii) In the meanwhile, the petitioner shall be afforded an opportunity to inspect the relevant record from 02:00 p.m. to 05:00 p.m. at IDBI Bank Ltd., 9[th] Floor, Plate B, Block 2, NBCC Office Complex, East Kidwai Nagar, New Delhi-110023 on meeting Mr. Hari Kumar Meena, DGM, IDBI Bank Ltd. (Mobile No. [REDACTED]) on 11.11.2024 and if need o 13.11.2024.

(iii) Since it submitted that the petitioner is 70 years and he may be allowed to appear before the concerned official through VC and simultaneously his Authorized Representative or Chartered Accountant/Financial Expert may appear in person before the authority concerned. The petitioner or his Authorized Representative or Chartered Accountant shall be supplied with the copy of forensic audit reports as well as other documents which are being relied upon by the respondent bank with that may be demanded, soft as well as hard copies, at the costs of the petitioner.

(iv) On conducting such inquiry, the petitioner shall file his reply to the SCN within period of 10 days from 13.11.2024.

(v) The respondent/IDBI Bank Limited shall afford an

opportunity of hearing to the petitioner on any working day, and, therefore may take decision thereupon in accordance with law within 21 days of the filing of the reply.

7.The petitioner shall be at the liberty to submit an application seeking necessary documents with proper justification, which after due consideration shall either be supplied or be allowed to be inspected.

8.The present writ petition along with the pending application stands disposed of accordingly.

OCTOBER 25, 2024 Sp/KS

DHARMESH SHARMA, J.