$~68

* IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 5797/2021

FINELINES, THROUGH ITS SOLE PROPRIETOR,

PRIYANKA GUPTA & ORS. ..... Petitioners
Through: Mr. D.S Chadha, Advocate.

versus

STANDARD CHARTERED BANK,

THROUGH ITS CHIEF EXECUTIVE OFFICER,
MS. ZARIN DARUWALA & ANR. ..... Respondents
Through: Mr. Divyam Agarwal, Ms. Aditi
Deshpnde and Mr. Anuj Aggarwal,
Advocates.

CORAM:
HON’BLE MR. JUSTICE PRATEEK JALAN

ORDER
% 03.06.2021

The proceedings in the matter have been conducted through video

conferencing.
CM APPL. 18175/2021 (for exemption)
Exemption allowed, subject to all just exceptions.
This application stands disposed of.
W.P.(C) 5797/2021 and CM APPL. 18174/2021 (for temporary
injunction)
1. Issue notice. Mr. Divyam Agarwal, learned counsel, accepts notice
on behalf of respondent No.1. Notice to respondent No.2-Reserve Bank
of India [“RBI”] may be served through Mr. Ramesh Babu MR, learned

Signature Not Verified

Digitally Signed W.P.(C)5797/2021 Page 1 of 3
By:SHITU NAGPAL
Signing Date:04.06.2021
09:01:45
 Standing Counsel for RBI.
2. The petitioners’ grievance is against a communication dated
23.04.2021, whereby the respondent No.1-Bank has rejected their request
for restructuring of a credit facility, owing to “certain internal credit
criteria”. Mr. DS Chadha, learned counsel for the petitioners, submits
that no further reasons have been disclosed, and the petitioners are left
unaware about the credit criteria which come in the way of their request.
He further submits that the petitioners have discharged their obligations
under the credit facility till date and have, without prejudice to their rights
and contentions, made a further application for restructuring of the
facility on 19.05.2021. Mr. Chadha also submits that the declaration by
the respondent No.1-Bank that the petitioners’ accounts are declared as
NPA was made on 01.12.2020, contrary to an order of Supreme Court
dated 03.09.2020 in W.P.(C) 825/2020 and connected matters (Annexure
P-34 to the writ petition).
3. At the outset, Mr. Chadha states that the present petition does not
seek to challenge the notice dated 26.04.2021, issued by the Bank under
the Securitisation and Reconstruction of Financial Assets and
Enforcement of Securities Interest Act, 2002 [“SARFAESI Act”] or any
other measures taken by the Bank under the said Act, and the petitioners
seek liberty to take their statutory remedies against such measures, if they
are so advised.
4. In view of the laconic nature of the Bank’s communication dated
23.04.2021 and the order of the Supreme Court referred to hereinabove,
the Bank is directed to consider the fresh application of the petitioner
dated 19.05.2021, in accordance with law. The Bank will also keep in

Signature Not Verified

Digitally Signed W.P.(C)5797/2021 Page 2 of 3
By:SHITU NAGPAL
Signing Date:04.06.2021
09:01:45
 mind Mr. Chadha’s contention regarding the regularisation of the
petitioners’ accounts. Mr. Agarwal states that the petitioners’ request will
be decided in accordance with the communication of the RBI dated
05.05.2021, by which the Resolution Framework 2.0, applicable to
Micro, Small and Medium Enterprises [“MSMEs”], has been
communicated to banks and financial institutions. The Bank will
communicate its decision thereupon to the petitioners, and will also place
on record the decision taken, alongwith the counter affidavit to be filed in
these proceedings.
5. Mr. Chadha states that the petitioners will cooperate with the Bank
in providing any clarification or answering any queries, that they may
have in this regard.
6. It is made clear that the pendency of the present proceedings will
not come in the way of any measures taken by the Bank under the
SARFAESI Act, or of the petitioners in prosecuting their statutory
remedies against the same, which may proceed in accordance with law.
7. Counter affidavits be filed within four weeks. Rejoinders thereto, if
any, be filed within two weeks thereafter.
8. Any action taken by the Bank in the meantime, pursuant to the
impugned order, will abide by the result of this writ petition.
9. List on 30.07.2021.

PRATEEK JALAN, J
JUNE 3, 2021
„vp‟

Signature Not Verified

Digitally Signed W.P.(C)5797/2021 Page 3 of 3
By:SHITU NAGPAL
Signing Date:04.06.2021
09:01:45