Maanoj Agarwala v. Idbi Bank
Case brief
What is this about?
Fraud classification under Master Directions challenged as violative of natural justice; show-cause notice dated 19.06.2024 by IDBI Bank to Maanoj Agarwala (W.P.(C) 10950/2024, Delhi High Court, Justice Vikas Mahajan, decided 13.05.2025); non-supply of Forensic Audit Report and underlying transaction documents; remedy via inspection of bank records (16-17.06.2025, extension to 20.06.2025) with Chartered Accountant/financial expert; interim status quo restraining declaration of account as 'fraud'; reply to SCN by 04.07.2025; hearing and decision in accordance with law within 21 days of reply; disposal in terms of parallel case Gautam Malhotra v. IDBI Bank Limited, W.P.(C) 11519/2024 (order dated 21.08.2024); all contentions left open.
What did the court decide?
Petition disposed with directions: SCN dated 19.06.2024 stands but IDBI Bank to maintain status quo and not declare or classify the petitioner's account as 'fraud'; petitioner to be allowed to inspect relevant records on 16.06.2025 and 17.06.2025 (and if need be 20.06.2025) accompanied by his Chartered Accountant or financial expert, with copies of forensic audit reports (soft and hard) to be supplied at his cost; reply to SCN within 14 days i.e. on or before 04.07.2025; hearing thereafter and decision by the Bank in accordance with law within 21 days of filing of the reply; all contentions left open.