Y K Gupta and Co v. Capri Global Capital Ltd

Delhi High Court · 09 Dec 2024 · 2024:DHC:9545
Manoj Jain
W.P.(C) 8055/2024
2024:DHC:9545
administrative petition_dismissed

AI Summary

The Delhi High Court held that a writ petition challenging a withdrawn Show Cause Notice is infructuous and granted the petitioner a fresh period to respond to a newly issued SCN under updated RBI regulations.

Full Text
Translation output
W.P.(C) 8055/2024 1
HIGH COURT OF DELHI
Date of Decision: 09th DECEMBER, 2024
W.P.(C) 8055/2024 & CM APPL. 71794/2024
Y K GUPTA AND CO .....Petitioner
Through: Mr. Sahil, Advocate.
VERSUS
CAPRI GLOBAL CAPITAL LTD .....Respondent
Through: Ms. Shweta Kapoor
WITH
Ms.Shivani Kaushik, Advocates for respondent
No.2.
CORAM:
HON'BLE MR. JUSTICE MANOJ JAIN
JUDGMENT
(oral)

1. The present petition has been filed challenging the issuance of a Show Cause Notice (SCN) dated 09.01.2024 by respondent No.1 seeking declaration of the petitioner as a wilful defaulter.

2. However, the above said application has now been moved by respondent No.1 seeking further directions in the matter.

3. It is submitted that the previous Show Cause Notice (SCN) has already been withdrawn by the Bank as RBI has come up with new Circular and since new Regulation has been put in place, in terms of such new Circular and new Regulation, a fresh Show Cause Notice (SCN) has been issued on 21.11.2024 and, therefore, nothing survives in the present writ petition.

4. It is also submitted that since the previous Show Cause Notice (SCN) has specifically been withdrawn, the present petition has become infructuous. W.P.(C) 8055/2024 2

5. Learned counsel for the petitioner submits that he has received the subsequent Show Cause Notice (SCN) but even such Show Cause Notice (SCN) is not in consonance with the guidelines and Regulations.

6. Be that as it may, fact remains that since the Show Cause Notice (SCN) in question i.e. Show Cause Notice (SCN) dated 09.01.2024 has been withdrawn, nothing further survives for adjudication in the present writ petition.

7. The petition is, accordingly, disposed of.

8. Learned counsel for the petitioner, however, submits that the petitioner had been given three weeks’ time to respond to the above said new Show Cause Notice (SCN), but since the present petition was pending, the petitioner did not reply to the above said new Show Cause Notice (SCN) in a comprehensive manner and had merely informed that the present writ petition was already pending adjudication.

9. In order to avoid any further complication, it is clarified that the period of three weeks for filing reply to the new Show Cause Notice (SCN) shall start to run from today.

10. Needless to emphasize, the respondent would still be at liberty to challenge the fresh Show Cause Notice (SCN) in accordance with law.

JUDGE DECEMBER 09, 2024