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TMI Blog2022 (3) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... under the RBI Master Circular. As distinguished from the said case, the present writ petition has thrown a challenge at the stage of showcause itself. In the present case the petitioner has a remedy to approach with a representation before the Willful Defaulter Committee. Moreover, even if the petitioner is branded as a Willful Defaulter by the WD Committee, there is scope of further review by the Review Committee headed by the Chairman/Chairman and Managing Director or the Managing Director and Chief Executive Officer/C.E.O.s and two independent Directors/Non-Executive Directors of the bank before the order becomes final upon confirmation by the Review Committee. Hence, at the nascent stage of mere issuance of a show cause notice, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- 21-3-2022 - Hon ble Justice Sabyasachi Bhattacharyya For the petitioner : Mr. Subhankar Nag, Mr. Deep Basu, Mr. Avishek Guha, Ms. Ratnadipa Sarkar, Mr. Avimanyu Roy Chowdhury For the respondent nos.1 to 3 : Mr. Kausik De, Mr. Chayan Gupta, Mr. Roshan Pathak, Ms. Mohini Majumdar Sabyasachi Bhattacharyya, J:- 1. The present writ petition has been filed, challenging a notice dated June 16, 2021 sent to the petitioner to show cause as to why the petitioner should not be declared as a willful defaulter under the RBI Master Circular dated July 1, 2014. 2. Learned counsel for the petitioner contends that the impugned notice was drawn in the form of a demand notice instead of a proper showcause notice. It is submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... review services or services to perform, agreed upon procedures in accordance with the standards established by the Institute of Chartered Accountants of India (ICAI). 7. Given the nature of the assignment, it was stipulated in the disclaimer, the procedures followed might not comprehend all matters relating to company that might be pertinent or necessary to the client s evaluation. The authors of the TAR further mentioned that their verification cannot be relied upon to reveal all material issues (known and/or unknown) which may have an impact on the opinion of the Resolution Professional. 8. The report further mentioned that the authors thereof did not independently verify all matters discussed and consequently, have relied on certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . State Bank of Patiala ors., reported at 2013 SCC OnLine (Cal) 19428; iii) Gouri Prasad Goenka Vs. State Bank of India, reported at 2021 SCC OnLine (Cal) 1942; 13. Learned counsel appearing for the respondent seeks to distinguish Jah Developers Private Limited (supra) on the ground that the issue in the said report was only whether an advocate can appear before the WD Committee. The ratio relied on by the petitioner was not even obiter dictum in the matter. 14. It is further contended that Maheswary Ispat Ltd. (supra) was preferred against a final adjudication of the WD Committee. However, in the present case, a show-cause has merely been issued and hence the challenge is premature. 15. As regards Gouri Prasad Goenka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, at the nascent stage of mere issuance of a show cause notice, the petitioner s challenge is premature. 19. The judgment rendered in Gouri Prasad Goenka (supra) is binding to such extent. 20. Insofar as Jah Developers Private Limited (supra) is concerned, the Supreme Court laid down the procedure for a Willful Defaulter Committee to take a decision within the purview of Clause 3 of the RBI Master Circular dated July 1, 2014 (updated as on January 7, 2015). However, since a show-cause notice has been issued to the petitioner in the present case under Clause 3(b) of the Master Circular, the petitioner still has the opportunity of making a representation before the Willful Defaulter Committee (First Committee) in reply to the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself was sufficient, since the documents on which the First Committee came to such conclusion were not disclosed therewith, such requirement is not a mandate of the RBI Master Circular, as interpreted in Jah Developers Private Limited (supra), but a mere technicality to enable the petitioner to make a proper representation on all the allegations before the WD Committee. 24. Since all the documents on which the respondents allegedly relied on have been disclosed in the respondents affidavit-in-opposition and disclosed in the present writ petition, there is nothing to prevent the petitioner from making a complete representation on all facets of the allegations of Willful Defaulter, including the question of validity of the show-cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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