Gujarat High Court
Idbi Bank Limited vs Shankarlal Sitaram Somani on 30 January, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
NEUTRAL CITATION
C/LPA/538/2024 ORDER DATED: 30/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/LETTERS PATENT APPEAL NO. 538 of 2024
In R/SPECIAL CIVIL APPLICATION NO. 4017 of 2024
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2024
In R/LETTERS PATENT APPEAL NO. 538 of 2024
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IDBI BANK LIMITED
Versus
SHANKARLAL SITARAM SOMANI & ANR.
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Appearance:
MR. KAMAL TRIVEDI, ADVOCATE GENERAL WITH MR BH BHAGAT, ADV
WITH MS. ANKEETA RAJPUT, ADV for the Appellant(s) No. 1
MR. SAURABH SOPARKAR, SR. ADV. FOR THAKKAR AND PAHWA
ADVOCATES(1357) for the Respondent(s) No. 1,2
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 30/01/2025
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
The only dispute raised in the original writ petition was about
denial of personal hearing by the Willful Defaulter Review Committee.
2. Having heard learned senior advocates for the parties and perused
the record, we may note that though as per the procedure prescribed in the
RBI Circular dated 01.07.2015, there was no specific requirement of
grant of opportunity of personal hearing to the borrower while evaluating
the correctness of the decision of the Identification Committee, however,
by virtue of the Master Circular dated 30.07.2024, the said procedure has
been reviewed and now as per the Clause 4(a)(vii), the Review
Committee is to grant an opportunity of hearing also to the borrower.
NEUTRAL CITATION
C/LPA/538/2024 ORDER DATED: 30/01/2025
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2. On the statement made by Mr. Kamal Trivedi, the learned
Advocate General appearing for the appellant that the Committee will
grant opportunity, we find it fit and proper to grant one more opportunity
to the respondents borrowers.
3. For the aforesaid, without entering into the merits of the
contentions of the parties and without looking to the correctness of the
decision of the learned single Judge, we only provide that the respondent
borrower be given one more opportunity by the Willful Defaulter Review
Committee so that they may present their case in a proper manner.
4. We, therefore, grant liberty to the respondents borrowers to make
an application before the Review Committee alongwith the copy of this
order, which shall fix the date for providing personal hearing to the
respondents borrowers. On the date so intimated to the respondents
borrowers, they shall remain present in the meeting of the Review
Committee. The Review Committee shall be required to pass a fresh
reasoned and speaking decision, strictly in accordance with law, after
granting opportunity of hearing to the respondents borrowers while
dealing with all the objections/contentions raised by the borrowers during
the course of hearing.
5. The decisions already taken by the Identification Committee in its
meeting held on 05.10.2023 and the Review Committee in its meeting
dated 12.02.2024, shall be subject to the fresh decision to be taken by the
Review Committee in compliance of the above directions.
6. It needs no clarification that the Review Committee is required to
take an independent decision in the matter.
NEUTRAL CITATION
C/LPA/538/2024 ORDER DATED: 30/01/2025
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7. With the above, while modifying the opinion and directions
contained in the judgment and order dated 16.04.2024 passed by the
learned single Judge, we dispose of the instant appeal only with a view to
grant one more opportunity to the respondents borrowers to bring the
dispute to its logical end.
8. The Civil Application for stay will not survive in view of the
disposal of the main appeal, as above.
(SUNITA AGARWAL, CJ )
(PRANAV TRIVEDI,J)
C.M. JOSHI
