Right Health Platter Private Ltd, v. Ministry Of Finance,
2024:MHC:2085
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.04.2024 CORAM :
THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM W.P. No.7521 of 2024 and W.M.P.Nos.8433 & 8435 of 2024 1.
Right Health Platter Private Limited, Represented by its authorized signatory, Mr.Yekulu Venkata Subbiah Murali Babu, No.115/63, Dr.Radhakrishnan Salai, 3rd Floor, North Flat, Mylapore, Chennai - 600 004. Ramnath Arumugham 3.
Yekulu Venkata Subbiah Murali Babu ... Petitioners Vs.
1.
Ministry of Finance, Represented by its Secretary, Department of Financial Services, Jeevan Deep Building, Parliament Street, New Delhi - 110 001.
Reserve Bank of India, Represented by its Chief General Manager, Department of Banking Operations & Development, Central Office, 13th Floor, Central Office Building, Shahid Bhagat Singh Road, Mumbai - 400 001.
3.
HDFC Bank Limited, Page No.1 of 6
No.116, Nelson Tech Park, Nelson Manickam Road, Amijikarai, Chennai, Tamil Nadu - 600 029.
... Respondents Prayer:Writ Petition is filed under Article 226 of Constitution of India, for issuance of writ of declaration, to declare that the entire proceedings of the 1st respondent, commencing from the issuance of the show cause notice dated 05.02.2024 to the communication of Forensic Audit Report dated 14.02.2024 received by the petitioners as annexure to letter dated 23.02.2024 concluding the petitioners as a 'Fraud', as unconstitutional and ultra vires, and in total disregard to the safeguards provided under the RBI Master Circular dated July 01, 2016.
For Petitioners : Mr.Srinath Sridevan Senior Counsel for Mr.Pawan Jhabakh For R1 : Mr.S.Makesh, Central Government Standing Counsel For R2 : No appearance For R3 : Mr.B.Dhanaraj
O R D E R
The writ of declaration has been instituted to declare that the entire proceedings of the 1st respondent, commencing from the issuance of the show cause notice dated 05.02.2024 to the communication of Forensic Audit Report dated 14.02.2024 received by the petitioners as annexure to letter dated Page No.2 of 6
23.02.2024 concluding the petitioners as a 'Fraud', as unconstitutional and ultra vires, and in total disregard to the safeguards provided under the RBI Master Circular dated July 01, 2016.
Mr.Srinath Sridevan, learned Senior Counsel for the petitioner would drew the attention of this Court with reference to the message forwarded to the petitioner on 23.02.2024, stating that the petitioner has to submit their representation on or before 26.02.2024. It is contended that 23.02.2024 was a Friday and the petitioners were asked to submit representation on 26.02.2024, which was Monday. The short span of time provided by the 3rd respondent/bank is not in compliance with the rules of natural justice.
3.
With reference to the show cause notice, the respective learned Counsels appearing on behalf of the respondents 1 and 3 would submit that the process has already been concluded. Therefore, the cause do not exists. The Counter affidavit filed on behalf of the 3rd respondent/bank reveals that the 3rd respondent/bank has classified the account of the 1st petitioner as "fraud" under the Master Directions on Frauds. The complaint dated Page No.3 of 6
05.04.2024 has already been filed/lodged by the 3rd respondent/bank before the Economic Offences Wing, Chennai against the petitioners. 4.
The relief claimed by the petitioners have been rendered infructuous and no longer survives for consideration. 5.
Since the 3rd respondent/bank has concluded its proceedings in all respects and a criminal prosecution has been initiated, the challenge made against the show cause notice is untenable.
6.
No writ against a show cause notice is entertainable in a routine manner. It is entertainable, if show cause notice has been issued by an incompetent Authority having no jurisdiction or tainted with the allegations of malafides.
7.
In the present case, the show cause notice had already been acted upon by following the due process and in compliance of Rules of natural justice and the Bank issued an order of declaration. Therefore, no further adjudication needs to be undertaken in respect of the grounds raised in the Page No.4 of 6
present writ petition. However, the petitioners are at liberty to raise all these grounds before the competent forum.
8.
Accordingly, the Writ Petition stands dismissed. No costs. Consequently, connected miscellaneous petitions are closed. 30.04.2024 Index :
Yes/No Speaking Order :
Yes/No :
Yes/No veda To 1.
Ministry of Finance, Represented by its Secretary, Department of Financial Services, Jeevan Deep Building, Parliament Street, New Delhi - 110 001.
Reserve Bank of India, Represented by its Chief General Manager, Department of Banking Operations & Development, Central Office, 13th Floor, Central Office Building, Shahid Bhagat Singh Road, Mumbai - 400 001.
S.M.SUBRAMANIAM,J.
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veda W.P. No.7521 of 2024 30.04.2024 (2/2) Page No.6 of 6