Dismissed

Shri K.C.P.Shivraman v. Union Bank of India

Madras HC14 Jun 2024WP/9382/2021

Case brief

AI extract

What is this about?

The High Court dismissed a writ petition filed by erstвольно directors questioning the Bank of India's declaration of their company as a wilful defaulter. The court upheld the declaration, noting the company's unauthorized diversion of funds and lack of response to hearing notices.

What did the court decide?

The writ petition for certiorari to quash the declaration of wilful defaulter was dismissed.

Shri K.C.P.Shivraman Vs Union Bank of India — Banking and Recovery | Madras HC (2024)

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W.P.No.9382 of 2021

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 14.06.2024

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CORAM

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THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN

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W.P.No. 9382 of 2021

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and

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W.M.P.No.9974 of 2021

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K.C.P.Shivaraman Erstwhile Managing Director of M/s.Karur K.C.P.Packkagings Ltd.,

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2.K.C.Palanisamy, Erstwhile Director of M/s.Karur K.C.P.Packkagings Ltd.,

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3.P.Annammal Erstwhile Director of M/s.Karur K.C.P.Packkagings Ltd., 4.M/s.Karur K.C.P.Packkagings Ltd., Represented by its Erstwhile Managing Director K.C.P.Shivraman 5. P.Kalaiarassee .... Petitioners Vs Union Bank of India, Rep. by its Chief Manager, Coimbatore Main Branch, 235, Oppanakara Street, Post Box No.8, Coimbatore – 641 001. .... Respondent

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Page 1 of 4 https://www.mhc.tn.gov.in/judis

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Prayer:-

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W.P.No.9382 of 2021

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Prayer:- Writ Petition filed under Article 226 of Constitution of India for the issuance of Writ of Certiorari, calling for the records leading up to the passing of the impugned Declaration No.WD:IDC:ORDER:0319 dated 04.02.2021, passed by the respondent and quash the same.

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For Petitioners : No appearance

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For Respondent : No appearance

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ORDER

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This Writ Petition has been filed challenging the order

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passed by the respondent dated 04.02.2021, thereby declaring M/s.Karur

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K.C.P.Packkagings Ltd., as wilful defaulter.

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The petitioners are the erstwhile Managing Director and

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erstwhile Directors of M/s.Karur K.C.P. Packkagings Ltd. The said

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entity committed default in repaying the loan amount. Before passing an order, M/s.Karur K.C.P. Packkagings Ltd., was duly served with a show cause notice and also notices were served for personal hearing. However, none appeared for personal hearing on behalf of the said Company.

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Page 2 of 4 https://www.mhc.tn.gov.in/judis

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W.P.No.9382 of 2021

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A perusal of the records reveals that the Company maintained current accounts with Axis Bank, Syndicate Bank, Karnataka Bank & HDFC Bank, which were outside the consortium banks. Those

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accounts were opened by the petitioner without obtaining prior permission from lending banks and it also routed transaction through these accounts leading to diversion of funds. That apart, the Company committed default and as such, the Company was rightly declared as

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wilful defaulter. Therefore, the contention raised by the petitioner cannot be considered and the writ petition is devoid of merits and is liable to be dismissed.

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Accordingly, this writ petition stands dismissed.

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Consequently, connected miscellaneous petition is closed. No costs.

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14.06.2024

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Internet : Yes Index : Yes/No Speaking/Non-speaking order Neutral Citation : Yes/No Lpp

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Page 3 of 4 https://www.mhc.tn.gov.in/judis

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W.P.No.9382 of 2021

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G.K.ILANTHIRAIYAN, J.

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Lpp

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To The Chief Manager, Union Bank of India, Coimbatore Main Branch, 235, Oppanakara Street, Post Box No.8, Coimbatore – 641 001

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W.P.No. 9382 of 2021

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14.06.2024

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Page 4 of 4 https://www.mhc.tn.gov.in/judis

Shri K.C.P.Shivraman v. Union Bank of India

Case brief

What is this about?

What did the court decide?

Shri K.C.P.Shivraman v. Union Bank of India

Case brief

What is this about?

What did the court decide?

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