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TMI Blog2014 (9) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Petitioner the documents at Serial Nos. 2, 3, & 6 which are mentioned in Exhibit-A referred to above within two weeks from today. Further proceedings to be commenced upon documents being supplied within two weeks thereafter. Thereafter, additional explanation may be furnished by the Petitioner. - WRIT PETITION 2112 OF 2014 - - - Dated:- 25-9-2014 - V. M. KANADE P.D. KODE, JJ. Mr. Milind Sathe, Senior Counsel with Mr. M.S. Doctor, Counsel i/b Bachubhai Munim Co for the Petitioners. Ms. Ratina Maravaran with Mr. P.S. Gujar for Respondent No.1/Union of India. Mr. F. De Vitre Senior Counsel with Gaurav Joshi, Senior Counsel, Mr. Chintan Chinnappa and Mr. Vikas Kumar i/b Anil Agarwal for Respondent No.2. ---- P.C.:- (Per V.M. Kanade, J.) 1. Heard the learned Senior Counsel appearing on behalf of the Petitioner and the learned Senior Counsel appearing on behalf of Respondent Nos.2 to 4. 2. By this Petition which is filed under Article 226 of the Constitution of India, Petitioner is seeking an appropriate writ, order and direction, intera alia, for directing Respondent Nos. 1 to 4 to furnish all documents to the Petitioner relating to the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson is declared as wilful defaulter, practically all his activities would come to a grinding halt and the Petitioner would lose the opportunity of reviving the Company and restoring its financial viability in the market. He pointed out the penal measures which would accrue and which have been mentioned in Clause 2.5 of the said guidelines. He then pointed out that the Grievances Redressal Mechanism provided in clause 3 clearly mentions that the Scrutiny Committee should comprise of higher functionaries headed by Executive Director and that the said Scrutiny Committee was expected to objectively arrive at a decision on the basis of material which was available. 8. The learned Senior Counsel for the Petitioner then invited our attention to the impugned notice dated 19th August, 2014. He submitted that though the impugned notice did not mention the investigative report submitted by Ernst Young, there was some material on record which indicated that at some stage reliance was placed on the said report. He then submitted that all documents were not produced or supplied by Respondent No.2 Bank. 9. He then submitted that against the similar notice which was issued by the P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgments of the Apex Court in Natwar Singh vs. Director of Enforcement and Another (2010) 13 SCC 255 and more particularly on para 33 of the said judgment. He submitted that even principles of natural justice do not require supply of documents upon which no reliance has been placed by the authority to set the law into motion. He submitted that Respondent No.2 had, in fact, supplied all documents which have been referred to and relied upon in the notice dated 19th August, 2014. 12. The learned Counsel appearing on behalf of Union of India supported the submissions made by the learned Counsel appearing on behalf of Respondent No.2. 13. After having heard all the Counsels at length, we are of the view that in order to enable the Petitioner to properly respond to the notice dated 19th August, 2014, Respondent No.2 Bank would be under a legal obligation to supply all documents which were referred to and relied upon by the Scrutiny Committee for arriving at decision objectively. 14. We believe that the same can be spelt out firstly from the Circular dated 1st July, 2014. The Circular defines 'wilful default' in clause 2.1. In clause 2.5 penal measures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by requisite evidence and should spell out the reason for which the borrower has been declared as wilful defaulter. 15. In the present case, though it is true that investigative report of Ernst Young is not mentioned or not referred to in the notice dated 19th August, 2014, yet, it is not in dispute that such a report had been called for by Respondent No.2 prior to the issuance of the notice, though it has been contended by the learned Senior Counsel for the Petitioner on the basis of the report which has been annexed to the additional affidavit that the Managing Director of the State Bank of India had made a statement that reliance was placed on the said report. Mr. De Vitre, the learned Senior Counsel for Respondent Nos. 2 to 4, after pointing out the said report, has rightly pointed out that the said observation which has been made about reliance of the said report is a comment made by a journalist who reported the said news and that was not made by the Managing Director. Be that as it may, the fact remains that such a report was in existence and the possibility of the Scrutiny Committee being influenced by such report cannot be ruled out. 16. It is quite well se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigate in the matter and it is only after he receives the result of these investigation that he can decide as to whether disciplinary action is called for or not. Therefore, these documents of the nature of interdepartmental communications between officers preliminary to the holding of enquiry have really no importance unless the Enquiry Officer wants to rely on them for his conclusions. In that case it would only be right that copies of the same should be given to the delinquent. It is not the case here that either the Enquiry Officer or the Commissioner of Income-tax relied on the report of Shri R.N. Srivastava or any other officer for his finding against the appellant. Therefore, there is no substance in this submission. 19. In our view, the observations made by the Apex Court in the said judgment, strictly speaking, will not apply to the facts of the present case since the documents which were referred in the said case were pertaining to interdepartmental communication between the Officers which were necessary for the purpose of holding the inquiry and, therefore, the Apex Court came to the conclusion that they were clearly of no importance at that stage. 20. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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