# In the matter of Amit Dineshchndra Patel vs. Reserve Bank of India

> HC judgment dated 2024-01-02. Citation: TCN-2024-HC-00138. The petitioners, promoters, suspended directors, and shareholders of Syntex Industries Limited,…

- **Court:** HC
- **Order date:** 2 Jan 2024
- **Citation:** TCN-2024-HC-00138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/amit-dineshchndra-patel-vs-reserve-bank-of-india-1441d24d

## Summary

### Background

The petitioners, promoters, suspended directors, and shareholders of Syntex Industries Limited, challenged the decision of respondent banks to declare the company's account as fraud in a Joint Lenders Meeting held on 29.09.2020. The company is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The declaration of fraud was based on forensic audit reports, which the petitioners claim were not adequately shared with them, violating principles of natural justice. The petitioners initially filed writ petitions in the Delhi High Court, which were later withdrawn.

## Facts

The petitioners are promoters, suspended directors, and shareholders of M/s Syntex Industries Limited. The company is currently undergoing Corporate Insolvency Resolution Process (CIRP) following an order dated 06.04.2021. On 29.09.2020, respondent banks declared the company's account as fraud based on forensic audit reports dated 11.08.2020 and 18.09.2020, citing reasons such as breach of trust, misfeasance, embezzlement, misappropriation of funds, and siphoning off funds. The petitioners claim they were not adequately provided with the forensic audit reports before the declaration of fraud. The Punjab National Bank communicated to the stock exchange on 30.09.2020 that a fraud of Rs.1203.26 crores was reported to the Reserve Bank of India. The petitioners had

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## Issues and analysis

### Issue 1: Whether the principles of natural justice, specifically audi alteram partem, were violated by the …

**Ratio:** The principle of audi alteram partem, a fundamental tenet of natural justice, mandates

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**Reasoning:** The court reasoned that the respondent banks failed to provide the petitioners with

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**Interpretation:** The court interpreted the principle of audi alteram partem to require that

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**Application:** The court applied the principle of audi alteram partem to the facts of the

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## Parties

- **Judges:** SANGEETA K.…
- **Appellants:** Amit Dineshchandra…
- **Respondents:** Syntex Industries…; Reserve Bank of…

## Timeline

- **2020-09-29 — Joint Lenders…**: Respondent banks declared the account of…
- **2020-08-18 — Consortium…**: The petitioner no.1 being the…

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