The case involves a writ petition challenging a show-cause notice issued by the respondent-authorities for declaring the petitioners as wilful defaulters. The petitioners argue that the show-cause notice is based on an NPA classification that was previously subject to an injunction and that the notice violates Section 96 of the IBC due to a pending proceeding under Section 95 of the IBC. The respondent-Bank contends that the NPA classification is valid, the wilful defaulter proceedings are distinct from recovery proceedings, and the show-cause notice is justified.
Atibir Industries Company Limited & Ors. filed a writ petition challenging a show-cause notice issued by Indian Bank for declaring them wilful defaulters. The petitioners, including the borrower-Company and its Directors/guarantors, were issued the notice based on a Master Circular on Wilful Defaulters issued by the Reserve Bank of India (RBI). The account of petitioner no. 1 was classified as a Non-Performing Asset (NPA) with effect from December 27, 2020. A prior writ petition restrained the respondent from selling NPAs based on this classification. The respondent-bank also initiated proceedings under Section 7 and Section 95 of the IBC, as well as recovery proceedings before the Debts Recovery Tribunal, and issued a notice under Section 13(2) of the SARFAESI
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Petitioner No.…
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The case involves a writ petition challenging a show-cause notice issued by the respondent-authorities for declaring the petitioners as wilful defaulters. The petitioners argue that the show-cause notice is based on an NPA classification that was previously subject to an injunction and that the notice violates Section 96 of the IBC due to a pending proceeding under Section 95 of the IBC. The respondent-Bank contends that the NPA classification is valid, the wilful defaulter proceedings are distinct from recovery proceedings, and the show-cause notice is justified.
Atibir Industries Company Limited & Ors. filed a writ petition challenging a show-cause notice issued by Indian Bank for declaring them wilful defaulters. The petitioners, including the borrower-Company and its Directors/guarantors, were issued the notice based on a Master Circular on Wilful Defaulters issued by the Reserve Bank of India (RBI). The account of petitioner no. 1 was classified as a Non-Performing Asset (NPA) with effect from December 27, 2020. A prior writ petition restrained the respondent from selling NPAs based on this classification. The respondent-bank also initiated proceedings under Section 7 and Section 95 of the IBC, as well as recovery proceedings before the Debts Recovery Tribunal, and issued a notice under Section 13(2) of the SARFAESI
…Petitioner No.…
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