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TMI Blog2014 (7) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioning company does not stand at a disadvantage. It is inconceivable that the petitioning company does not have in its fleet an efficient and well versed company secretary and/or competent law officers. In the hearing to be conducted by the Committee, reasonably simple questions of fact as to by whom and how the finances of the petitioning company were handled and utilized, and where the funds have gone resulting in accumulation of dues, would fall for consideration, which a company secretary and/or law officers of fair intelligence and having knowledge of the conditions prevailing in the petitioning company would be able to disclose, for unearthing the truth. It is he/they who would be best suited to answer the queries of the Commit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the Bangalore branch of the bank had been classified as non-performing asset in terms of the guidelines of the Reserve Bank of India (hereafter the RBI) and that the committee on identification of wilful defaulters had identified it as a wilful defaulter for the reasons mentioned therein. The petitioning company was granted 15 days time for submission of representation, if any, for consideration by the Grievance Redressal Committee of the bank (hereafter the Committee) on identification of wilful defaulters. Similar notice was issued to the directors of the petitioning company, who are the proforma respondents in this writ petition. The petitioning company responded to the aforesaid notice by a representation dated June 10, 2014 wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not contain any provision for being represented by an advocate at the time of hearing before the Grievance Redressal Committee. 4. By a further representation dated June 30, 2014, the petitioning company stressed that refusal of legal representation was in essence a violation of the principles of natural justice and the rights guaranteed under the Constitution of India. It was further brought to the notice of the bank that the petitioning company had been afforded opportunity to be represented by advocates of its choice by Corporation Bank, a member of the consortium which granted financial assistance to the petitioning company and, accordingly, it was reiterated that the hearing would be attended by the Chairman cum Managing Directo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived of assistance of its advocate at the hearing, it would stand seriously prejudiced at the very beginning of the proceedings. He also contended that grant of legal assistance would not prejudice the bank and the bank may be directed to reconsider the prayer for grant of permission to be represented by an advocate of its choice. Reliance was placed on the decision of the Supreme Court reported in (1991) 2 SCC 283 (J. K. Aggarwal v. Haryana Seeds Development Corporation Ltd. and ors.), in support of the contention that the petitioning company is entitled to a fair deal. 8. Per contra, Mr. Mitra, learned senior advocate for the bank contended that the allegation against the petitioning company is simple; there has been a default in mee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether any case for such representation had been set up or not. However, nothing turns on it. The infirmity from which the order of refusal suffers from is not such that the petitioning company would be entitled to any relief on this writ petition for the reasons that follow. 12. My understanding of the ratio of the decision in J. K. Aggarwal (supra), relied on by Mr. Sarkar, and the other decisions of the Supreme Court as well as this Court in regard to representation of a delinquent employee by an advocate in a departmental enquiry initiated against him is this. A delinquent employee cannot claim legal representation as of right; but where legal representation is not excluded expressly or by necessary implication, it is open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioning company would be liable to face consequences once it is declared a wilful defaulter, it is of no worth for it has not dealt with public funds in the manner agreed upon by and between the parties. That the petitioning company is a defaulter is not in question; what is of relevance is whether the default is wilful or not. 14. It has not been shown that the officers of the bank comprising the Committee are legally trained persons for which there could be a reasonable likelihood of a failure of justice, if the petitioning company were refused the permission to be represented by an advocate. Even if any or all the officers of the bank comprising the Committee are legally trained persons, the petitioning company does not stand at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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