Madras High Court
Dumpala Madhu Sudhana Reddy vs Reserve Bank Of India on 9 October, 2023
W.P.Nos.29248 & 29249 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 09.10.2023
CORAM :
THE HONOURABLE DR.JUSTICE ANITA SUMANTH
W.P.Nos.29248 & 29249 of 2023
and
W.M.P.Nos. 28852, 28853, 28854, 28857, 28855, 28858, 28859,
28861 of 2023
Dumpala Madhu Sudhana Reddy .. Petitioner
in WP 29248/23
Dr.Ambedkar Rajkumar Ganta (IAS) (Retd) .. Petitioner
in WP 29249/23
vs
1.Reserve Bank of India
Mumbai Regional Office,
Shahid Bhagat Singh Marg,
Kala Ghoda, Fort, Mumbai,
Maharashtra 400001.
2.Central Bureau of Investigation
Banking Securities Fraud Branch,
Represented by Inspector of Police,
Having office at:
Plot No.5-B, CGO Complex,
Lodhi Road, New Delhi-110003
3.State Bank of India
Represented by S.Ravichandran
Deputy General Manager,
Stressed Assets Management Branch
No.32, Red Cross Building,
Indian Red Cross Society,
Egmore, Chennai-600 008
Also at:
12th Floor, State Bank Bhavan,
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W.P.Nos.29248 & 29249 of 2023
Madame Cama Road, Nariman Point,
Mumbai-400021.
4.Axis Bank,
Corporate Banking Branch,
Karumuthu Nilayam,
Ground Floor, No.192, Anna Salai,
Chennai-600 002.
5.IL & FS Financial Services Ltd.,
The IL&FS Financial Centre,
Plot C – 22, G Block, Bandra Kurla Complex Bandra East,
Mumbai 400 051.
6.UCO Bank,
Flagship Corporate Branch,
6-3-1108, Ground Floor,
Navabarath Chambers, Raj Bhavan Road,
Somajiguda, Hyderabad-500 082.
Also at
Head Office at No.10, BTM
Sarani Kolkatta-700 001.
7.Syndicate Bank,
(Currently merged with Canara Bank)
SAMG Branch,
16/38, SIC Building, 1st Floor, Anna Salai,
Chennai-600 002
8.Bank of India,
Khairtabad Branch, PTI Building, Ground Floor,
10-01-1199/2, AC Guards, Hyderabad-500 004.
Head Office at:
Star House C-5, G-Block, 3rd floor,
Bandra Kurla Complex, Bandra (E),
Mumbai-400 051.
9.Punjab National Bank,
Large Corporate Branch, Centenary Building,
28, MG Road, Bangalore-560 001.
Head Office at:
Plot No.4, Sector 10, Dwarka, New Delhi-110 066.
10.Indian Overseas Bank,
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W.P.Nos.29248 & 29249 of 2023
RP Road Branch, Kasuva Complex,
RP Road, Secunderabad-500 003
Head Office at:
No.762, Anna Salai, Chennai-600 002. .. Respondents
in WP 29248/23
Petitions filed under Article 226 of the Constitution of India
praying to issue a writ of certiorarified mandamus to call for record
and quash the Resolution passed by the Fraud Identification
Committee, Stressed Assets Resolution Group of the 3rd respondent
herein in its meeting held on 14.09.2020 as arbitrary and
untenable in law.
(In both WPs)
For Petitioners : Mr.Anirudh Krishnan
COMMON ORDER
A similar issue has been dealt with by this Court in
W.P.Nos.15964 of 2023 & 10454, 11669 & 11671 of 2022 dated
04.10.2023 and following order was passed:-
Only the miscellaneous petitions seeking
injunction and fixation of early date are listed
today. However, bearing in mind Memo dated
04.10.2023 filed by Mr.M.L.Ganesh, learned
counsel appearing for the State Bank of India,
the detailed submissions made by all learned
Senior Counsel for the petitioners and
respondents, this Court finds that the writ
petitions may themselves be disposed. Hence,
Registry has been directed to list the main writ
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W.P.Nos.29248 & 29249 of 2023
petitions as well, and they are so listed under a
special list.
2.A common order is passed in these
cases since all writ petitioners have sought
writs declaring a resolution passed by the
Fraud Identification Committee, Stressed
Assets Resolution Group of the Respondent in
its meeting held on 14.09.2020, (a copy of
which has not been served upon the
petitioners) as 'fraud'. Based on the aforesaid
Resolution, proceedings have been initiated as
against the petitioners.
3.That a copy of the resolution has not
been made available to the petitioners is
admitted seeing that the respondent/State
Bank of India have themselves stated in
counter dated 15.06.2022 that the declaration
of the borrower as 'fraud' is as per the extant
guidelines of the Reserve Bank of India and the
said guidelines do not provide for sharing of a
copy of the said resolution to the borrower.
4.Be that as it may, Mr.Ganesh, learned
counsel appearing for the State Bank of India,
has filed a memo dated 04.10.2023 common to
all writ petitions, which reads as follows:
'It is respectfully submitted that fraud
cases declared prior to Hon'ble Supreme Court
Judgement dated 27.03.2023, SBI has
reported to RBI and accordingly SBI has
decided to "reverse" classify the fraud decision
and further decided to issue show cause notice
to the Borrower's/ Guarantor's.
It is further submitted that if no response
from Borrower's/ Guarantor's, pursuant to the
issuance of show cause notice, the Lender
institution will declare fraud in accordance with
law. The reclassified fraud will be intimated to
the RBI as per prevailing guidelines.
It is therefore respectfully prayed that in
the light of Hon'ble Apex Court Judgment and
RBI guidelines, SBI has decided to follow
reverse classification process and intends to
conduct fresh fraud proceedings in accordance
with law.
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W.P.Nos.29248 & 29249 of 2023
It is therefore prayed that the aforesaid
statement may be recorded with regard to
fraud declaration alone and thus render
justice.'
5.He would confirm the position that the
impugned resolution is being reversed and with
it, the decision to classify the petitioners as
'fraud'. The State Bank of India will issue show
cause notice if at all they intend to proceed
with fresh proceedings proposing to classify the
petitioners as 'fraud'. In light of memo dated
04.10.2023 filed now, the challenge to the
Resolution no longer survives as the Resolution
itself does not survive any further. Recording
the same, these writ petitions are closed.
6.Parties also bring to the Court's notice
that proceedings have been initiated by the
Central Bureau of Investigation that are
proceeding parallely.
7.All parties confirm that they do not
pursue any prayer as against the Central
Bureau of Investigation in these writ petitions,
and at this stage. No costs. Consequently,
connected miscellaneous petitions are also
closed.
2. In light of the above, the present writ petitions stand
decided in terms of order dated 04.10.2023 extracted above. No
costs. Connected miscellaneous petitions are closed.
09.10.2023
Index:Yes/No
Neutral Citation:Yes/No
ssm
https://www.mhc.tn.gov.in/judis
W.P.Nos.29248 & 29249 of 2023
To
1.Reserve Bank of India
Mumbai Regional Office,
Shahid Bhagat Singh Marg,
Kala Ghoda, Fort, Mumbai,
Maharashtra 400001.
2.Central Bureau of Investigation
Banking Securities Fraud Branch,
Represented by Inspector of Police,
Having office at:
Plot No.5-B, CGO Complex,
Lodhi Road, New Delhi-110003
3.State Bank of India
Represented by S.Ravichandran
Deputy General Manager,
Stressed Assets Management Branch
No.32, Red Cross Building,
Indian Red Cross Society,
Egmore, Chennai-600 008
Also at:
12th Floor, State Bank Bhavan,
Madame Cama Road, Nariman Point,
Mumbai-400021.
4.Axis Bank,
Corporate Banking Branch,
Karumuthu Nilayam,
Ground Floor, No.192, Anna Salai,
Chennai-600 002.
5.IL & FS Financial Services Ltd.,
The IL&FS Financial Centre,
Plot C – 22, G Block, Bandra Kurla Complex Bandra East,
Mumbai 400 051.
6.UCO Bank,
Flagship Corporate Branch,
6-3-1108, Ground Floor,
Navabarath Chambers, Raj Bhavan Road,
Somajiguda, Hyderabad-500 082.
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W.P.Nos.29248 & 29249 of 2023
Also at
Head Office at No.10, BTM
Sarani Kolkatta-700 001.
7.Syndicate Bank,
(Currently merged with Canara Bank)
SAMG Branch,
16/38, SIC Building, 1st Floor, Anna Salai,
Chennai-600 002
8.Bank of India,
Khairtabad Branch, PTI Building, Ground Floor,
10-01-1199/2, AC Guards, Hyderabad-500 004.
Head Office at:
Star House C-5, G-Block, 3rd floor,
Bandra Kurla Complex, Bandra (E),
Mumbai-400 051.
9.Punjab National Bank,
Large Corporate Branch, Centenary Building,
28, MG Road, Bangalore-560 001.
Head Office at:
Plot No.4, Sector 10, Dwarka, New Delhi-110 066.
10.Indian Overseas Bank,
RP Road Branch, Kasuva Complex,
RP Road, Secunderabad-500 003
Head Office at:
No.762, Anna Salai, Chennai-600 002.
https://www.mhc.tn.gov.in/judis
W.P.Nos.29248 & 29249 of 2023
DR. ANITA SUMANTH,J.
ssm
W.P.Nos.29248 & 29249 of 2023
09.10.2023
https://www.mhc.tn.gov.in/judis
