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TMI Blog2024 (6) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... m today - Upon receipt of the documents, the petitioners shall file reply to the SCN, within a period of four weeks, thereafter. The present petition is disposed off. - Hon'ble Ms. Justice Mini Pushkarna For the Petitioners : Dr. Abhishek Manu Singhvi, Sr. Adv. with Mr. Sumit K. Batra, Mr. Naunidh S. Arora, Mr. Manish Khurana and Ms. Priyanka Jindal, Advs. For the Respondent : Mr. Rajesh Kumar Gautam, Mr. Anani Achumi, Ms. Shivani Sagar, Mr. K. Yeptho, Ms. Likivi Jakhalu, Mr. Dinesh Sharma and Mr. Kushagrah, Advs. ORDER MINI PUSHKARNA, J (ORAL) CM APPL. 32414/2024 (For Exemption) 1. Exemption allowed, subject to just exceptions. 2. Application is disposed of. W.P.(C) 7825/2024 CM APPL. 32413/2024 3. The present petition has been filed seeking to set aside the Show Cause Notice ( SCN ) dated 18th May, 2024 issued by the respondent-Indian Bank, declaring the petitioners as Willful Defaulters , in respect of the loan account of M/s Agson Global Pvt. Ltd. ( the company ), on the ground that the same is contrary to law, as well as in terms of the facts of the present case. 4. Dr. Abhishek Manu Singhvi, learned Senior Counsel appearing for the petitioners, submits that the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... banks for restructuring, appears fair. 8. Attention of this Court has also been drawn to the Joint Inspection Report dated 10th July, 2023, wherein, it was recorded as follows: xxx xxx xxx The bank personnels during their visit enquired about the outcome of stock of almonds which was deteriorated because of non- movement due to Covid Lock down and Farmer agitation as informed to the consortium earlier. About this, As already explained due to various adverse external factors experienced in the past which were beyond the control of the company, the Almond Stock could not be sold within its shelf life and hence the majority of the Stock was rendered as inedible. The same was confirmed by various food safety accredited labs to whom sealed samples were sent by stock auditor appointed by the consortium in April 2023 for quality assessment. The factual outcome was that majority of stock was certified as non-edible, the same was also acknowledged/accounted by stock auditors in their report of May 2023 (Ram Vijay and co) Company was already doing a lot of R D since last 1-2 years to minimize the loss and found that Linoleic Acid which can be used as input for CIS production can be extracted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Cut-off date as per the Resolution Plan) (Rs Cr) %Share Assent/ Dissent for Restructuring proposal consideration Status on TEV Report 1 IOB 710.00 39.04% Agreed for re-structuring Under consideration 2 PNB 331.30 18.21% Agreed for re-structuring in line with the Lead Bank Under consideration 3 Union Bank 169.11 9.30% Confirmation awaited Under consideration 4 Bank of India 150.28 8.26% Agreed for re-structuring in line with the Lead Bank Under consideration 5 UCO Bank 122.79 6.75% Agreed for re-structuring in line with the Lead Bank Under consideration 6 Canara Bank 95.79 5.27% Restructuring proposal will be considered subsequent to acceptance/ closure of forensic audit Under consideration 7 SBI 56.30 3.10% Not Agreeable Not Applicable (member bank has expressed unwillingness for restructuring) 8 Central Bank 47.35 2.60% Agreed for re-structuring in line with the Lead Bank Under consideration 9 BOB 78.61 4.32% Agreed for re-structuring in line with the Lead Bank Under consideration 10 Indian Bank 44.95 2.47% Not Agreeable Not Applicable (member bank has expressed unwillingness for restructuring) 11 IDBI Bank 12.36 0.68% Not Agreeable Not Applicable (member bank has expressed unw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed above, it is apparent that the consortium of lenders led by Indian Overseas Bank has expressed their agreement for restructuring of the debt which having more than 93% shares in the lending. It is the Indian Bank or one or other two banks who have not given their consent and they have been opposing restructuring. The Corporate Debtor is a going concern. xxx xxx xxx 8. Both the Learned Counsel for the parties have made respective submissions in support of their claim. From the facts which have been brought on record, it does appear that the majority of lenders having more than 90% share in the lending have expressed their agreement on for restructuring of the debt which could not be accomplished due to credit rating of the Corporate Debtor which is R5. We also notice that the High Court of Delhi on 16.01.2024 has already passed an order to the credit rating agency to have a relook at CRA Rating of RPF in view of inputs given by the lead bank which process is still on way. The minutes of meeting dated 29.01.2024 of joint lenders clearly minutes following decision:- all the member banks unanimously give their mandate to lead bank for in-principle transferring the account to NA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat an effective opportunity has been provided to the noticee. This would be in direct contravention to the Principles of Natural Justice. Therefore, it is imperative that all the underlying documents, which form the basis of a SCN, are supplied to the noticee. Thus, Supreme Court in the case of State Bank of India and Ors. versus Rajesh Agarwal and Ors., (2023) 6 SCC 1, has held as follows: xxx xxx xxx 36. We need to bear in mind that the principles of natural justice are not mere legal formalities. They constitute substantive obligations that need to be followed by decision-making and adjudicating authorities. The principles of natural justice act as a guarantee against arbitrary action, both in terms of procedure and substance, by judicial, quasi-judicial, and administrative authorities. Two fundamental principles of natural justice are entrenched in Indian jurisprudence : (i) nemo judex in causa sua, which means that no person should be a Judge in their own cause; and (ii) audi alteram partem, which means that a person affected by administrative, judicial or quasi-judicial action must be heard before a decision is taken. The courts generally favour interpretation of a statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lected. In Tulsiram Patel [Union of India v. Tulsiram Patel, (1985) 3 SCC 398 : 1985 SCC (L S) 672] , this Court explained the wide amplitude of audi alteram partem : (SCC p. 476, para 96) 96. The rule of natural justice with which we are concerned in these appeals and writ petitions, namely, the audi alteram partem rule, in its fullest amplitude means that a person against whom an order to his prejudice may be passed should be informed of the allegations and charges against him, be given an opportunity of submitting his explanation thereto, have the right to know the evidence, both oral or documentary, by which the matter is proposed to be decided against him, and to inspect the documents which are relied upon for the purpose of being used against him, to have the witnesses who are to give evidence against him examined in his presence and have the right to cross-examine them, and to lead his own evidence, both oral and documentary, in his defence. The process of a fair hearing need not, however, conform to the judicial process in a court of law, because judicial adjudication of causes involves a number of technical rules of procedure and evidence which are unnecessary and not requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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