M/S Miraj Recyclers Pvt. Ltd. ... vs Bank Of Baroda
2021 Latest Caselaw 9603 Guj

     C/SCA/9664/2021                                ORDER DATED: 27/07/2021




      IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

          R/SPECIAL CIVIL APPLICATION NO. 9664 of 2021

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M/S MIRAJ RECYCLERS PVT. LTD. THROUGH DIRECTOR HITEN
                        DHIRAJLAL MEHTA
                              Versus
                         BANK OF BARODA
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Appearance:
MR VISHWAS K SHAH(5364) for the Petitioner(s) No. 1,2
for the Respondent(s) No. 1
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 CORAM:HONOURABLE MR. JUSTICE NIKHIL S. KARIEL

                            Date : 27/07/2021

                             ORAL ORDER

1. Heard learned Advocate Shri Vishwas K. Shah for the petitioners.

2. By way of this petition, the petitioners challenge the show cause notice issued by the respondent - Bank of Baroda dated 17.06.2021 to the present petitioners amongst others.

3. Learned Advocate Shri Shah relies upon the decision of this Court in the case of Ionic Metalliks Vs. Union of India reported in (2015)2 GLH 156 and contends that the show cause notice should have all materials to make good allegations levelled against the person to whom the show cause notice is issued and bereft of the same, show cause notice may be termed as being illegal. Learned Advocate has further relied upon the decision of High Court of Calcutta in the case of Atlantic Project Ltd. and Ors. Vs. Allahabad Bank and Ors. and submitted that the show cause notice according to the said judgment ought to have been issued by the Identification Committee as per

C/SCA/9664/2021 ORDER DATED: 27/07/2021

the Master Circular whereas the show cause notice is issued by the Deputy General of Bank in the instant case. It is further submitted that as the Bank had filed O.A. in the year 2017 before the learned Debts Recovery Tribunal where the contention of willful defaulter has not been raised. Furthermore, he submits that the transactions in question are of the year 2016, whereas show cause notice issued in June, 2021 and therefore, show cause notice is barred by delay and laches.

4. Having regard to the submissions made by learned Advocate Shri Shah, issue Notice returnable on 25.08.2021. Direct service is permitted.

In the meantime, respondent - Bank shall not take any further action with regard to the show cause notice impugned in the present petition.

(NIKHIL S. KARIEL,J) Y.N. VYAS