Karun Raj Narang vs Punjab National Bank & Anr
2016 Latest Caselaw 197 Del

$~16
*      IN THE HIGH COURT OF DELHI AT NEW DELHI
+      CS(OS) 3446/2015 & IA No.25679/2015
       KARUN RAJ NARANG                        ..... Plaintiff
                     Through : Mr. Darpan Wadhwa, Advocate

                        versus

       PUNJAB NATIONAL BANK & ANR                ..... Defendants
                     Through : Mr. Hashmat Nabi, Advocate
                     for D-1/Bank.

       CORAM:
       HON'BLE MS. JUSTICE HIMA KOHLI
                     ORDER

% 11.01.2016

1. Pursuant to the order dated 5.1.2016, learned counsel enters

appearance for the defendant No.1/Bank and submits that the present

suit is pre-mature inasmuch as the defendant No.1/Bank has only

issued a show cause notice dated 1.12.2015 to the plaintiff, to which

he has recently responded. He submits that the said reply is still

under consideration and further, the plaintiff shall be given a personal

hearing before any orders are passed.

2. Mr. Wadhwa, learned counsel for the plaintiff disputes the

submission made by the other side that the impugned document dated

1.12.2015 issued by the defendant No.1/Bank is a show cause notice.

He submits that a perusal of the contents of the said notice would

make it apparent that it is a demand notice.

3. In any case, the plaintiff has now filed a reply to the impugned

notice. As per the plaintiff, the defendant No.1/Bank has not followed

the procedure prescribed under the "Master Circular on Wilful

Defaulters" circulated by the RBI, particularly clause 3 thereof.

4. Counsel for the defendant/Bank assures the Court that all the

pleas taken by the plaintiff shall be considered and after a personal

hearing is granted to him, appropriate orders shall be passed, which

shall attain finality only after the Reviewing Committee of the Bank

examines the same. The said procedure has yet to be undertaken.

5. In view of the submissions made hereinabove and with the

consent of the parties, the present suit is disposed of with directions to

the defendant No.1/Bank to fix a date and time for granting a personal

hearing to the plaintiff and convey the same to him in writing. The

plaintiff along with his authorized representative shall appear on the

fixed date and time and make his submissions, whereafter the

defendant No.1/Bank shall decide the representation of the plaintiff in

response to the impugned notice dated 1.12.2015 in accordance with

law, under written intimation to the plaintiff.

6. Needless to state that if the plaintiff is aggrieved by the order

that may be passed by the defendant No.1/Bank, then he shall be

entitled to seek his remedies in accordance with law.

7. Till a decision is taken by the defendant No.1/Bank, no coercive

steps shall be taken against the plaintiff qua the impugned notice

dated 1.12.2015.

8. The suit is disposed of, along with the pending application.

HIMA KOHLI, J JANUARY 11, 2016 sk/rkb