Disposed

FPA-FE-62/MUM/2009 of M/s. State Bank of Bikaner & Jaipur v/s The Special Director Directorate of Enforcement, Mumbai

ATFP21 Jan 2021FPA-FE-62/MUM/2009

Case brief

AI extract

What is this about?

The Tribunal managed hearings for five bank appeals. It concluded arguments in the South Indian Bank appeal but instead of joining all appeals, it scheduled the remaining ones for a separate date on March 8, 2021, addressing issues of merger, lack of appearance, and varying legal interests.

What did the court decide?

The application to hear all bank appeals together was disposed of; remaining appeals were listed for hearing on 08.03.2021.

FPA-FE-62/MUM/2009 of M/s. State Bank of Bikaner & Jaipur v/s The Special Director Directorate of Enforcement, Mumbai — ATFP (2021) — LawSathi Research

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APPELLATE TRIBUNAL FOR SAFEMA, FEMA, PMLA, NDPS, PBPT Act AT NEW DELHI

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(1) FPA-FE-58/MUM/2009 M/s. South Indian Bank	…	Appellant
Versus
The Special Director
Directorate of Enforcement, Mumbai	…	Respondent
(2) FPA-FE-59/MUM/2009
M/s. State Bank of Hyderabad	…	Appellant
Versus
The Special Director Directorate of Enforcement, Mumbai	…	Respondent
(3) FPA-FE-62/MUM/2009
M/s. State Bank of Bikaner & Jaipur	…	Appellant
Versus
The Special Director
Directorate of Enforcement, Mumbai	…	Respondent
(4) FPA-FE-65/MUM/2009
M/s. Dena Bank	…	Appellant
Versus
The Special Director Directorate of Enforcement, Mumbai	…	Respondent
&
(5) FPA-FE-66/MUM/2009
M/s. UCO Bank	…	Appellant
Versus
The Special Director
Directorate of Enforcement Mumbai		Respondent
,	…
Advocates/Authorized Representatives wh	o appe	ared
For the Appellant (South Indian Bank) :	Shri Shri	Madhav Khurana, Advocate Aditya Mukherjee, Advocate
	Ms. Ms.	Satya Jha, Advocate Riya Arora, Advocate

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FPA-FE-58-59/MUM/2009, FPA-FE-62/MUM/2009 & FPA-FE-65-66/MUM/2009

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Page 1 of 5

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For the Appellant	: Shri Ashok Kr. Panda, Sr. Advocate
(M/s. State Bank of Hyderabad)	Shri A.V. Rangam, Advocate Shri Buddy A. Ranganadhan, Advocate
For the Appellant (M/s. State Bank of Bikaner & Jaipur)	: None
For the Appellant (M/s. Dena Bank)	: Shri Rakesh Tiku, Sr. Advocate Shri Arpan Wadhawan, Advocate
For the Appellant (M/s. UCO Bank)	: Shri Rakesh Tiku, Sr. Advocate Shri Sarfaraz Khan, Advocate
For the Respondent	: Shri Rajeev Awasthi, Advocate
CORAM SHRI G.C. MISHRA :	ACTING CHAIRMAN

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ORDER 21.01.2021

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The matter is taken up through video conferencing. The appearances of the learned counsels are as above.

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FPA-FE-58/MUM/2009

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Arguments from both sides in the appeal filed by the appellant M/s. South Indian Bank Ltd. is concluded and order reserved. The Hon’ble High Court, Delhi vide its order dated 28.02.2020 asked this Tribunal for expeditious disposal of the appeal within six months from dated 28.02.2020. The said order of the Hon’ble Court, Delhi was brought to the knowledge of this Tribunal on 19.08.2020 i.e. almost nearing six months from the date of order passed by the Hon’ble High Court, Delhi. In view of the order passed by the Hon’ble High Court, Delhi, even during the COVID-19 pandemic situation with Single Member functioning in the Tribunal, the appeal was taken up time to time and the argument from both the sides is concluded today and order is reserved.

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FPA-FE-58-59/MUM/2009, FPA-FE-62/MUM/2009 & FPA-FE-65-66/MUM/2009

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Page 2 of 5

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FPA-FE-59/MUM/2009

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List the appeal on 08.03.2021.

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FPA-FE-62/MUM/2009

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None appeared for the appellant in this appeal. List on 08.03.2021.

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FPA-FE-65/MUM/2009 & FPA-FE-66/MUM/2009

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The appeal bearing FPA-FE-65/MUM/2009 is filed by Dena Bank. The said bank has been merged with Bank of Baroda. No application has been filed to substitute the erstwhile bank with the merged bank in the appeal.

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The appellant Dena Bank and the appellant UCO Bank in the aforesaid two matters are being represented by Shri Rakesh Tiku, Learned Sr. Advocate. Separate applications dated 20.01.2021 appears to have been sent through e- mail to this Appellate Tribunal at 09.40 p.m. and the same are placed on record today. In the said applications these appellants have prayed for giving opportunity to the appellants to present its defence, before passing of final order/judgment in any of the batch matters pertaining to the banks, on the grounds stated in the applications.

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Heard, Shri Rakesh Tiku, Learned Sr. Advocate. After the conclusion of arguments advanced in the matter of appeal filed by M/s. South Indian Bank Ltd., the Ld. Sr. Advocate submitted that the judgment in the M/s. South Indian Bank matter may not be passed till other banks matters are heard. During the course of hearing, he has drawn the attention of this Tribunal to the order dated 06.02.2020 passed by this Tribunal and also the order dated 19.09.2014 passed by the erstwhile Tribunal. By referring to these two orders it is submitted that the erstwhile Tribunal had taken a decision to hear all the bank appeals together and this Tribunal also after considering the order dated 19.09.2014 of the erstwhile Tribunal took a decision to take up the bank

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FPA-FE-58-59/MUM/2009, FPA-FE-62/MUM/2009 & FPA-FE-65-66/MUM/2009

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Page 3 of 5

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appeals for hearing on the next date. Therefore, it was urged that all the bank appeals be heard together. At this point of time, Shri Madhav Khurana, the ld. counsel appearing for the appellant M/s. South Indian Bank Ltd. submitted that the order dated 06.02.2020 passed by this Tribunal to take up the bank appeals together was challenged before the Hon’ble High Court vide W.P. (C) 2276 of 2020 before the Hon’ble High Court, Delhi wherein his lordship vide order dated 28.02.2020 has asked this Tribunal for expeditious disposal of the appeal filed by M/s. South Indian Bank Ltd. The appellant M/s. South Indian Bank Ltd. is opposing to take up all the banks together. Shri Ashok Kumar Panda, Learned Sr. Advocate appearing for the appellant M/s. State Bank of Hyderabad did not raise any objection for separate hearing of the appeal filed by his client M/s. State Bank of Hyderabad vide appeal no. FPA-FE59/MUM/2009.

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Heard, Shri Rakesh Tiku, the learned Sr. Counsel for appellants M/s. Dena Bank and M/s. UCO Bank also heard the learned counsel for the appellant M/s. South Indian Bank Ltd. When the Hon’ble High Court, Delhi has passed the order dated 28.02.2020 this Appellate Tribunal has been functioning with only one Member against the vacancies of four Members and one post of Chairman. From the later part of March, 2020 locked down was imposed due to the COVID-19 pandemic situation. Except two or three occasions this Tribunal inspite of staff/infrastructure constraints started taking urgent matters from May, 2020 through Virtual Hearing. It has also started hearing only those appeals in which various High Courts have issued directions stipulating time to dispose of appeals and in most of the cases, this Tribunal presently functioning with only one Member could be able to meet the deadlines. In the appeal filed by M/s. South Indian Bank Ltd., in obedience to the order of Hon’ble High Court, Delhi this Tribunal has been able to conclude the hearing of the appeal. At this stage, the appellants M/s. Dena Bank and M/s. UCO Bank are insisting to hear their appeals before

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FPA-FE-58-59/MUM/2009, FPA-FE-62/MUM/2009 & FPA-FE-65-66/MUM/2009

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passing of the judgment in M/s. South Indian Bank’s appeal to which the learned counsel for the South Indian Bank Ltd. is raising strong objection.

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No doubt all the appeals filed by the banks are against the same impugned order and that some of the legal issues are common but there is no inter-se transactions amongst the banks. The alleged fraudulent activities committed by private individuals are distinguished and separate in each bank’s case. One more thing to be noted here that nobody is representing M/s. State Bank of Bikaner and Jaipur, the appellant in appeal No. FPA-FE62/MUM/2009 and if the appeals filed by all the banks are to be heard together than it would be difficult to dispose of the appeals expeditiously. Further, M/s. Dena Bank is no more in existence in view of its merger with Bank of Baroda and that there is no application to substitute the Dena Bank with Bank of Baroda.

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This Appellate Tribunal has taken up the appeal filed by M/s. South Indian Bank and it will reach to its logical conclusion. At the same time this Tribunal is fixing the appeals of other banks on 08.03.2021.

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In view of the above, the applications dated 20.01.2021 filed on behalf of M/s. Dena Bank and M/s UCO Bank in appeal no.’s FPA-FE-65/MUM/2009 & FPA-FE-66/MUM/2009 are disposed of by fixing all other banks appeals on 08.03.2021.

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(G. C. Mishra) Acting Chairman

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New Delhi,

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21^st January, 2021

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‘D’

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FPA-FE-58-59/MUM/2009, FPA-FE-62/MUM/2009 & FPA-FE-65-66/MUM/2009

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