Punjab National Bank v. Ms Paras Lubricants Ltd And Another

$~71 * IN THE HIGH COURT OF DELHI AT NEW DELHI + LPA 1226/2024 & CM APPL. 74599/2024 PUNJAB NATIONAL BANK .....Appellant Through:

Mr. Anant Gautam and Mr. Deepanjal Chaudhary, Advocates.

versus MS PARAS LUBRICANTS LTD AND ANOTHER .....Respondent Through:

Mr. Amit Kr. Singh, Mr. Varun Maheshwari and Mr. Manan Soni, Advocates for R-1.

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R

% 20.12.2024 1.

The appellant (Punjab National Bank) has filed the present appeal impugning a judgment dated 15.10.2024 (hereafter the impugned judgment) passed by the learned single Judge of this Court in W.P.(C) 5899/2023 captioned M/s. Paras Lubricants Ltd. v. Punjab National Bank and others. 2.

The respondent (Paras Lubricants Ltd.) had preferred the said writ petition essentially impugning the classification of its bank account as 'fraud'. The learned single Judge had faulted the appellant for classifying the respondent's accounts as 'fraud' without following the principles of natural justice.

3.

In addition, the learned single Judge had also found the action to be The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/12/2024 at 12:03:16

ill-founded, arbitrary and capricious. In terms of the impugned judgment, the respondent's petition was allowed with cost quantified at ₹5,00,000/-. 4.

After some arguments, the learned counsel for the parties agreed that the adverse findings in the impugned judgment as well as the cost imposed on the appellant be set aside. However, the direction to set aside the classification of the petitioner's account as 'fraud' be sustained. The parties are agreeable that, in the event the appellant seeks to classify the respondent's account as 'fraud', it shall do so after affording the respondent an opportunity to be heard.

5.

In view of the consensus between the parties we dispose of the present appeal by setting aside the adverse observations recorded in the impugned judgment as well as the direction to pay costs of ₹5,00,000/-. 6.

In the event the appellant seeks to classify the respondent's account as 'fraud', it shall do so only after affording the respondent full opportunity to be heard.

7.

All rights and contentions of the parties in this regard are reserved. 8.

The petition is disposed of in the aforesaid terms. Pending application also stands disposed of.

VIBHU BAKHRU, ACJ TUSHAR RAO GEDELA, J DECEMBER 20, 2024 yrj Click here to check corrigendum, if any The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/12/2024 at 12:03:16