Iq City Foundation And Another vs Bank Of Baroda And Others
2023 Latest Caselaw 2619 Cal

17th April, 2023
  (D/L No.171)
     (SKB)

                                            W.P.A. 17088 of 2021
                                                    With
                                               CAN 2 of 2022
                                                    With
                                               CAN 3 of 2022
                                                    With
                                               CAN 5 of 2022

                                       IQ City Foundation and another
                                                   Versus
                                         Bank of Baroda and others

                                 Mr. P. Chidambaram, Sr. Adv.,
                                 Mr. Jishnu Saha, Sr. Adv.,
                                 Mr. Meghajit Mukherjee,
                                 Mr. Chiranjivi Sharma,
                                 Ms. Priyanka Sharma
                                                        ... for the petitioners.

                                 Mr. Jaydip Kar, Sr. Adv.,
                                 Mr. Suddhasatva Banerjee,
                                 Mr. Avishek Guha,
                                 Miss Akansha Chopra
                                                   ... for the Bank of Baroda.

                                 Mr. Debdatta Sen,
                                 Mrs. S. Chatterjee
                                            ... for the Reserve Bank of India.


                            There are four applications pending before the

                   court.

                            Learned counsel appearing for the Bank of Baroda

                   submits that CAN 1 of 2022 which was filed by the

                   petitioners for correction of the first order passed by the

                   co-ordinate Bench on 18th November, 2021 has already

                   been disposed of.

                            CAN 2 of 2022 was filed by the Reserve Bank of

                   India for recalling and/or modification of the order
                                 2




dated 30th November, 2021 passed by the co-ordinate

Bench.

      CAN 3 of 2022 is filed by the Bank of Baroda

which appears to be the only interested respondent in

the proceedings as of now. This application is for

recalling of the modified order passed by the co-ordinate

Bench on 30th November, 2021.

CAN 4 of 2022 is an application taken out by the

petitioners for recording the changed stand taken by the

Canara Bank in terms of reduction of the rate of

interest.

CAN 5 of 2022 is an application taken out by the

petitioners seeking appointment of an independent

external auditor for conducting audit assessment of the

petitioners' Credit Facility.

The order on record is the first order of a co-

ordinate Bench dated 18th November, 2021 which was

modified by a later order of 30th November, 2021. The

Bank of Baroda and the Canara Bank challenged the

modified order before the Division Bench and the

Division Bench by its judgment and order dated 4th

March, 2022 remanded the matter to the first court for

considering the effect of the impugned order (the order

dated 30th November, 2021) after filing of affidavits. The

appellants (the Bank of Baroda and the Canara Bank)

were also given leave to seek recalling/review or

modification of the impugned order before the first

court.

After hearing learned counsel appearing for the

petitioners and the Bank of Baroda, it appears that the

interim order passed on 30th November, 2021 directing

the Reserve Bank of India to appoint an independent

auditor cannot be construed as giving relief to any of the

contesting parties before the court. This is in view of

the fact that the Reserve Bank of India declined to

appoint an independent auditor and made its stand

apparent before the Division Bench as also by an

application filed by the Reserve Bank of India (CAN 2 of

2022). The RBI further suggested that the Bank should

appoint an independent auditor in place and stead of

RBI.

As stated above, the Canara Bank is no longer a

contesting party since it reduced the interest rate. The

Axis Bank, which is the other respondent in the matter,

is also not part of the dispute any more. Hence, the

Bank of Baroda is the only respondent who is contesting

the writ petition.

The interim order granted by the co-ordinate

Bench on 30th November, 2021 has admittedly lost its

force for the above reasons. It can, therefore, be

recorded that there is presently no interim order, which

can enure to the benefit of the parties before the court.

The writ petition is thus required to be heard on

affidavits. Learned counsel appearing for the contesting

respondent Bank/Bank of Baroda takes the point of

maintainability of the writ petition under Section 21-A of

The Banking Regulation Act, 1949, on the ground of the

dispute being contractual and entirely private in nature.

Let affidavit-in-opposition be filed within two

weeks from date. Reply, if any, be filed within a week

thereafter.

List this matter on 10th May, 2023 for hearing the

writ petition as well as the application being CAN 5 of

2022.

The respondent shall also take the point of

maintainability in its affidavit-in-opposition.

(Moushumi Bhattacharya, J.)