Rajesh Agrarwal Vs Reserve Bank of India (Telangana High Court)

This case involves Mr. Rajesh Agarwal, former Chairman and Managing Director of M/s. B.S. Limited, challenging the Reserve Bank of India's Master Directions on Fraud. Mr. Agarwal is aggrieved by the classification of his company's account as 'fraud' and 'willful defaulter' by the Joint Lenders Forum and the Fraud Identification Committee. He argues that the principles of natural justice were not included in the RBI's Master Circular.

THE HON'BLE THE CHIEF JUSTICE SRI RAGHVENDRA SINGH CHAUHAN
AND
THE HON’BLE SRI JUSTICE B. VIJAYSEN REDDY
WRIT PETITION No. 19102 OF 2019
% 10.12.2020

Between:
Mr. Rajesh Agarwal,
S/o. Late Satyanarayan Agarwal,
Aged about 47 years, R/o. Signature One Block 3rd Floor,
Road No.4, Banjara Hills,
Hyderabad – 500 034.
… Petitioner

AND

Reserve Bank of India,
Through Regional Director, 6 Sansad Marg,
New Delhi,
And others.
…Respondents

Counsel for the petitioner: Mr. Mukul Rohatgi, Senior Counsel
for Mr. Tarun G. Reddy

Counsel for the respondents: Mr. B. Nalin Kumar
Mr. B. S. Prasad, Senior Counsel
For Mr. K. Surender
Mr. Namavarapu Rajeshwar Rao (ASSGI)
Mr. Maheshwar Rao Kunchem
Mr. M. V. Ramana
Pearl Law Associates

< Gist:
> Head Note:
? CITATIONS:

1. (2019) 6 SCC 787
2. 1993 Supp. (4) SCC 260
3. (2005) 7 SCC 764
4. (2010) 10 SCC 744
5. (2007) 7 SCC 555
6. (2006) 5 SCC 167
7. (1992) 4 SCC 363
8. AIR 2015 SC 1523
9. (2007) 5 SCC 428
10. (1969) 2 SCC 262
11. (1978) 1 SCC 405
12. AIR 1967 SC 1269
13. (1981) 1 SCC 664
14. (2008) 14 SCC 151
15. (2011) 13 SCC 733
16. (1988) 3 SCC 416

THE HON'BLE THE CHIEF JUSTICE SRI RAGHVENDRA SINGH CHAUHAN
AND
THE HON’BLE SRI JUSTICE B. VIJAYSEN REDDY
WRIT PETITION No. 19102 OF 2019

JUDGMENT: (Per Hon’ble the Chief Justice Sri Raghvendra Singh Chauhan)

Aggrieved by the non-inclusion of principles of natural justice in theMaster Directions on Fraud (‘the Master Circular’, for short), dated01.07.2016, issued under Section 35-A of the Banking Regulation Act, 1949 by the Reserve Bank of India, aggrieved by the decision of the Joint Lenders Forum (‘the JLF’, for short) dated 15-02-2019, and aggrieved by the resolution of the Fraud Identification Committee (‘FIC’, for short) dated 31.07.2019, whereby both the JLF and the FIC have classified the account ofM/s. B. S. Limited, (‘the Company’, for short), of which the petitioner was the former Chairman and Managing Director, as ‘fraud’ and ‘willful defaulter’, the petitioner, Mr. Rajesh Agarwal, has approached this Court.

To know more in details find the attachment file