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TMI Blog2024 (7) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... ely. The same cannot be reduced to an empty formality by not affording an appropriate opportunity to a party, by not giving access to the relevant documents, that form the basis of issuance of a SCN. This Court in the case of Shantanu Prakash v. State Bank of India and Others, [ 2024 (5) TMI 1323 - DELHI HIGH COURT] , has held that ' it is imperative that the relevant documents that form the basis of issuance of a SCN, ought to be provided to the concerned party in order to enable such a party to raise its defense effectively. Such fundamental right of a party cannot be taken away by denying a proper opportunity to submit an efficacious reply, which would not be feasible in the absence of requisite documents that form the core foundation of a SCN.' Thus, it is imperative that the petitioner is supplied the complete underlying documents, as relied upon in the SCN dated 20th February, 2024, to allow the petitioner to make an effective reply. The respondent-bank shall provide the Investigation Report dated 18th January, 2024, along with full Annexures, to the petitioner - respondent-bank shall also provide the Stock and Receivables Audit Report, along with full Annexures, to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d only the comments by the Bank s Inspecting Official. However, the complete Inspection Report was not provided to the petitioner. Thus, an E-mail dated 20th April, 2024 was sent by the petitioner to the respondent no. 1-bank in this regard, requesting for supply of the missing documents that had been relied upon in the SCN. 8. The respondent no. 1-bank replied to the said E-mail on 08th May, 2024, providing some of the supporting documents, but failed to provide all the documents relied upon in the SCN. Thus, there were some more exchange of communications between the parties, wherein, the petitioner time and again requested for supply of all the requisite documents. 9. Thus, it is the case on behalf of the petitioner that the respondent no. 1-SBI has made several allegations against the petitioner, however, has failed to provide the petitioner, with all relevant documents, as relied upon in the impugned SCN. Learned counsel appearing for the petitioner relies upon the judgment of Supreme Court in the case of Indian Commodity Exchange Limited Versus Neptune Overseas Limited and Others, 2020 SCC OnLine 967, and judgment of this Court in the case of Shantanu Prakash Versus State Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o represent its case suitably and adequately. The same cannot be reduced to an empty formality by not affording an appropriate opportunity to a party, by not giving access to the relevant documents, that form the basis of issuance of a SCN. 16. Thus, this Court in the case of Shantanu Prakash v. State Bank of India and Others, 2024 SCC OnLine Del 3870, has held as follows: xxx xxx xxx 9. It is settled law that fair procedure and the Principles of Natural Justice require that the requisite documents, which form the basis of a SCN, ought to be provided to the concerned party in order to enable such party to submit a proper reply to answer all the allegations raised against it. If the relevant documents are not provided to a party, then, the whole procedure of issuance of a SCN and filing a reply thereto, would be reduced to an empty formality. No party can be expected to respond to a SCN in an effective manner, in the absence of the underlying documents, which form the basis of the said SCN. Thus, Supreme Court in the case of Natwar Singh v. Director of Enforcement1, has held as follows: xxx xxx xxx 31. The concept of fairness may require the adjudicating authority to furnish copies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to interpreting the provisions of law but also determining the veracity and truth of the allegations made before it. The court would be able to perform this function accurately only if both parties have access to information and possess the opportunity to address arguments and counter-arguments related to the information. 28.2. Fair trial: Since a verdict of the Court has far-reaching repercussions on the life and liberty of an individual, it is only fair that there is a legitimate expectation that the parties are provided all the aid in order for them to effectively participate in the proceedings. 28.3. Transparency and accountability : The investigative agencies and the judicial institution are held accountable through transparency and not opaqueness of proceedings. Opaqueness furthers a culture of prejudice, bias, and impunity principles that are antithetical to transparency. It is of utmost importance that in a country grounded in the Rule of Law, the institutions adopt those procedures that further the democratic principles of transparency and accountability. The principles of fairness and transparency of adjudicatory proceedings are the cornerstones of the principle of o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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