Dismissed

Ms Jain Udhyog v. Punjab National Bank

DRT13 Oct 2023MA/61/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal dismissed an application seeking to initiate contempt proceedings against a respondent bank for alleged non-compliance with a previous order. The applicants contended that a designated committee comprising only four members, instead of the required five, had illegally rejected a restructuring proposal and failed to pass a speaking order.

What the court decided

AI extract

Ms Jain Udhyog versus Punjab National Bank — Insolvency and Bankruptcy | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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MA/61/2023 MS JAIN UDHYOG Vs PUNJAB NATIONAL BANK

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13.10.2023 Item No.67

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Argued by: Sh. Rakshit Gupta, alongwith Sh. Sachin Sharma, Counsel for the Applicants.

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Sh. VK Diwan, Counsel for the respondent bank.

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M/s Jain Udhyog and another (Applicants) have filed this application for initiating contempt proceedings against the Managing Director, PNB and others (respondents).

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The background facts are that earlier applicants had filed SA No.147/2021 which was disposed of by this Tribunal vide order dated 17.06.2023 with the observations that the bank would place the representation dated 25.09.2021 or any other representation to be made by the applicants before the designated committee and the designated committee would dispose of the same within a month from 17.06.2023. It was also ordered that designated committee would pass a speaking order. It was also ordered that in case the application filed by the applicants is dismissed bank would be entitled to proceed against the properties of the applicants mentioned in the notice under Section 13(2) and 13(4) of the SARFAESI Act.

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With this background I come to this application. Applicants in the impugned application have alleged that the respondents have not complied with the order dated 17.06.2023 passed by this Tribunal. In fact the respondents vide order dated 17.07.2023 have rejected the request of the applicants. The order 17.07.2023 was not passed by the designated committee. Further, the order is not a speaking one. Accordingly, it is alleged that application may be allowed and contempt proceedings be initiated by the respondents. Respondents in the reply have denied the facts in the application. They further allege that the matter was placed before the designated committee which passed a speaking order. Accordingly, the application may be dismissed.

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I have heard Mr. Rakshit Gupta, and Mr. Sachin Sharma, Counsel for the applicants and Mr. VK Diwan, Counsel for the respondent bank.

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Mr. Rakshit Gupta, and Mr. Sachin Sharma, has argued that the constitution of the committee was not proper. The committee should

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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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comprise five members. However, there were only four members in the committee. Accordingly, the order passed by the committee is illegal, null and void.

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However, I am of the considered view that there is no merit in the contentions of the applicants. The four members have unanimously rejected the restructuring proposal. Even if the fifth member had joined and had given a dissenting view, the view of the majority would have prevailed.

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Accordingly, the application of the applicants is hereby dismissed . File be consigned to record room after due compliance. Pending IAs, if any, stand disposed of.

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(A S Narang) Presiding Officer Pronounced in open Court DRT-I, Chandigarh 13.10.2023

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Pankaj

Ms Jain Udhyog v. Punjab National Bank

Case brief

What is this about?

What the court decided

Ms Jain Udhyog v. Punjab National Bank

Case brief

What is this about?

What the court decided

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