9911796707
TMI Blog2021 (12) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... to park bank claims with a specialised body, first with an Ordinance and then with the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 being enacted, the realisation of the debts due did not pick up and in less than a decade there were further committee reports before the NPA Act the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 came in force. The petitioners seek a rather tall order on somewhat vague and over-generalised principles and submission. If the law exists, the court need not reinvent the wheel and ask the Union to act in accordance therewith, when the Union is already obliged to act in such manner. An omnibus order to reform the system cannot be so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticularly of the nationalised bodies. The petitioners refer to several provisions of the Companies Act, 2013 which arm the Central Government with adequate authority to investigate into the affairs of corporate entities and the personnel at the helm of such entities. The petitioners lament that most of the relevant provisions are never resorted to. 2. W.P.No.28872 of 2018 concentrates on five companies, three of which are in liquidation. The petitioners say that in insolvency proceedings, creditors, including nationalised banks, have been required to write off thousands of crores in debt and to an extent of even more than 60 per cent of the dues in one case. The petitioners submit that the money would not have vanished and there is littl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly point out but may not be equipped or authorised to address. 5. It is a pity that despite two decades of the courts going on like a broken record to separate the investigation wing of the police from the law and order, little measures have been taken in such regard. The law declared by the Supreme Court is the law of the land and it may need a nudge to remind all authorities that they ought to abide by the Supreme Court fiat in such regard. 6. The concern expressed by the petitioners here pertains to the vanishing money from the Indian economy and the next to nothing that is realised in course of insolvency proceedings or even bank claims in respect of non-performing assets. While the courts were blamed in the several reports that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest may be better served if the petitioners focussed on any particular entity and presented cogent grounds to the Central Government to excite the Central Government to exercise its statutory authority in such regard, whether under Sections 337 to 341 or Section 212(1)(c) of the Companies Act, 2013. It may even be possible for the petitioners to seek an investigation under Section 213 of the Act of 2013. 9. The Union refers to a judgment reported at (2019) 18 SCC 401 ( 63 Moons Technologies Ltd v. Union of India ) and says that all the work that the Union attempted to do did not pass judicial muster. The Union asserts that it may be counter-productive if the Union sends out a signal that it is so pro-active that it would interfere with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase free to carry focussed representations pertaining to particular entities to the Central Government to urge the Central Government to invoke its statutory authority to take action. There is no doubt that the Central Government will look into the individual cases with the seriousness that they deserve and will, in appropriate cases, not require any more prodding than the representation to take immediate appropriate action. It is equally possible that there may be good reason for the Central Government to not intervene in some cases and the doors of judicial review are always open to the petitioners, if aggrieved by any inaction or delayed action by the Central Government. W.M.P.No.33720 of 2018 is closed. There will be no order as to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
