Full Judgment Text
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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE/ORIGINAL JURISDICTION
SPECIAL LEAVE PETITION (CIVIL) NOS.9286-9287 OF 2018
JAYASWAL NECO INDUSTRIES LIMITED & ANOTHER ..Petitioners
VERSUS
RESERVE BANK OF INDIA & OTHERS ..Respondents
WITH
TRANSFER PETITION (CIVIL) NO.1971 OF 2018
BILT GRAPHIC PAPER PRODUCTS LIMITED ..Petitioner
VERSUS
RESERVE BANK OF INDIA & OTHERS ..Respondents
O R D E R
SLP (CIVIL) NOS.9286-9287 OF 2018
1. These Special Leave Petitions arise out of the final
judgment and order dated 05.03.2018 passed by the High Court
of Judicature at Bombay in Writ Petition (Lodging) No.56 of
2018 and Notice of Motion (Lodging) No.21 of 2018 in Writ
Petition (Lodging) No.56 or 2018. The writ petition had
challenged three circulars issued by the Reserve Bank of India
(‘the RBI’, for short) on 29.09.2017, 30.11.2017 and
Signature Not Verified
Digitally signed by Dr.
Mukesh Nasa
Date: 2022.05.06
14:31:03 IST
Reason:
07.12.2017.
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2. The Special Leave Petitions came up before this Court on
16.04.2018 when this Court issued notice and ordered that
status-quo be maintained by the parties.
3. After passing of the order dated 16.04.2018 and during
the period of December 2018 to June 2021 eleven out of twelve
lenders of the petitioners, assigned their debts to Assets
Care & Reconstruction Enterprise Ltd. (“ACRE” for short),
th
while the 12 lender entered into One-Time Settlement with the
petitioners.
4. As a result of these arrangements, as of now, ACRE is the
only financial creditor. An arrangement was thereafter
entered into between ACRE and the petitioners, in terms of
which ACRE agreed to withdraw the Insolvency & Bankruptcy Code
proceedings initiated against the petitioners, while the
petitioners undertook to withdraw the instant Special Leave
Petitions.
5. In pursuance of such arrangement (i) I.A. No.106796 of
2021 has been preferred by the petitioners for withdrawal of
the Special Leave Petitions; and, (ii) I.A. No.141774 of 2021
has been filed on behalf of ACRE seeking certain directions.
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6. The applications are opposed by the RBI by filing its
responses to both the applications. The RBI has submitted
that the applications for withdrawal be rejected and the
matter be taken up for hearing on merits. Principally the
submission has been that taking advantage of the order
granting status-quo , certain arrangements were entered into
behind the back of the RBI, and therefore such conduct must
disentitle the applicants from seeking withdrawal as prayed
for.
7. Though we see force in the submissions advanced by the
RBI, we allow the applications seeking permission to withdraw
the Special Leave Petitions, mainly because out of eleven
lenders, who assigned the debts to ACRE, nine lenders are
Public Sector Financial Corporations/Banks. If, at this stage,
permission to withdraw the Special Leave Petitions is not
granted and the Special Leave Petitions are rejected with
further directions to restore status-quo ante as suggested by
the RBI, it may lead to a situation where huge sums of money
may be required to be refunded by such lenders.
8. Guided by this aspect alone, we permit the applications
preferred by the petitioners and ACRE subject to the
petitioners depositing a sum of Rs.10,00,000/- (Rupees Ten
Lakhs Only) as costs with the Supreme Court Middle Income Group
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Legal Aid Society, within two weeks from today. Accordingly,
the Special Leave Petitions will stand dismissed as withdrawn
after such deposit.
9. We make it clear that we have neither affirmed nor given
any seal of imprimatur insofar as the events which have
happened after the order of status-quo granted by this Court.
T.P.(C) No.1971/2018
10. Since the Special Leave Petitions are disposed of, no
orders are called for in this Transfer Petition. The Transfer
Petition is, accordingly, rejected.
Pending applications, if any, also stand disposed of.
............................J.
(UDAY UMESH LALIT)
............................J.
(S. RAVINDRA BHAT)
New Delhi,
May 04, 2022.