9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 635 - HC - Companies LawSeeking directions against the respondent no. 1/National Housing Bank (NHB) to consider and decide upon the petitioner s representation dated 18th August, 2023 - seeking direction to call upon respondent no. 2, i.e., India Bulls Housing Finance Limited (IBHFL) to produce the responses and relevant documents, disclosing the actions taken by them in respect of the query dated 6th April, 2023 addressed by the petitioner. HELD THAT - The petitioner has been in litigation with IBREL and seeks to collect information and documents through the process of the present petition, so as to use the same to file intervention application before NCLAT, New Delhi in the appeal filed by IBREL against the order dated 9th May, 2023 passed by NCLT, Chandigarh, or to file a separate appeal himself against the order dated 9th May, 2023 passed by NCLT, Chandigarh. Writ jurisdiction of this Court cannot be used by a party for collecting evidence and documents against another party, against whom the petitioner has pending disputes. Writ jurisdiction is meant to safeguard the constitutional, legal and vested rights of a party. The powers vested with this Court under writ jurisdiction are large that are used by this Court to ensure that the constitutional and legal rights of parties are protected and secured - The Court process, much less a writ jurisdiction, cannot be used as a fishing and roving enquiry against a party with whom the petitioner has pending disputes, for the purposes of collecting evidence and documents to be used against such a party. The present petition filed by the petitioner is clearly a misuse and abuse of the process of the Court. The petitioner is trying to collect evidence and documents against IBREL, as is manifest from the representation dated 18th August, 2023 submitted by the petitioner to NHB. Neither any constitutional nor any legal right of the petitioner is being violated or breached, for protection of which the present petition has been filed. This Court will not become a party in a fact finding and evidence collecting process in order to aid the petitioner, which is the manifest purpose of filing the present petition. The present petition is clearly a misuse and abuse of the process of law. Thus, no merit is found in the present petition - petition dismissed.
Issues Involved:
1. Petitioner's request for NHB to consider and decide upon the representation dated 18th August, 2023. 2. Petitioner's request for NHB to call upon IBHFL to produce responses and relevant documents regarding the query dated 6th April, 2023. 3. Examination of the fraudulent sanction and disbursement of loans by IBHFL to Embassy Group. 4. Petitioner's intent to use collected information for legal proceedings before NCLAT, New Delhi. Summary: Issue 1: Petitioner's Request for NHB to Consider and Decide Upon the Representation The petitioner, a minority shareholder in India Bulls Real Estate Limited (IBREL), filed a petition seeking directions against the National Housing Bank (NHB) to consider and decide upon the representation dated 18th August, 2023. The representation highlighted various irregularities committed by India Bulls Housing Finance Limited (IBHFL) concerning the fraudulent sanction and disbursement of loans to Embassy Group by creating unauthorized charges on land belonging to Karnataka Industrial Area Development Board (KIADB). Issue 2: Petitioner's Request for NHB to Call Upon IBHFL to Produce Responses and Relevant Documents The petitioner also sought directions for NHB to call upon IBHFL to produce responses and relevant documents regarding the query dated 6th April, 2023. The petitioner argued that IBHFL released a substantial amount of Rs. 1,318 Crores to Embassy Group by creating charges on a property not belonging to any Embassy Group companies and without the requisite consent of KIADB. Issue 3: Examination of the Fraudulent Sanction and Disbursement of Loans by IBHFL to Embassy Group The petitioner submitted that the fraudulent actions by IBHFL were brought to light in proceedings filed in Karnataka High Court. The petitioner emphasized that the disbursement of funds by IBHFL to Embassy Group required close scrutiny by NHB due to the serious concerns raised. Issue 4: Petitioner's Intent to Use Collected Information for Legal Proceedings Before NCLAT, New Delhi The court noted that the petitioner intended to use the information collected from NHB to file an appropriate intervention application or appeal before the National Company Law Appellate Tribunal (NCLAT), New Delhi. The petitioner had been contesting the amalgamation proceedings between Embassy Group and IBREL before the National Company Law Tribunal (NCLT), Chandigarh. Judgment: The court held that the writ jurisdiction could not be used by a party to collect evidence and documents against another party with whom the petitioner had pending disputes. The court emphasized that writ jurisdiction is meant to safeguard constitutional, legal, and vested rights, not to serve as a tool for a fishing and roving enquiry. The petition was deemed a misuse and abuse of the process of the court. Consequently, the court dismissed the petition along with the pending application, reiterating that the court process must be used bona fide and properly, and not be abused.
|
