Paridhi Arya
Published on June 9, 2022 at 21:19 IST
Bombay HC’S division bench of Justice SV Gangapurwal and Justice Madhav Jamdar had granted interim relief to former promoters of Jet Airways Naresh Goyal and his wife Anita Goyal and asked State Bank of India (SBI) to file their reply in two weeks.
In the interim order Court directed the SBI to not take any action under criminal law against Petitioners till the Court pass any further order.
The Naik Naik & Co. filed the Petition in Bombay High Court against the SBI order to declare the account of former promoter’s account under the tag of ‘wilful defaulters’. The Jet Airways has made ‘wilful default’ in repaying credit so the account of airlines was termed as fraud and then the SBI passed the said order last year.
In the present Petition notification of Reserve Bank of India is also challenged as in the said notification RBI stated that the company, its directors and promoters account can be allowed fraud without giving notice or a chance of being heard. This is against the principle of Natural Justice of being heard.
The Petitioner was not served with any notice or communicated about SBI’s order. The counsel of Petitioner submitted that Airway’s Corporate Insolvency Resolution Process was passed under Bankruptcy Code last year.
Because of this proceeding under Bankruptcy Code all the liabilities of Airways is paid off and no one is left and now Jet Airways cannot be called fraud then how the Petitioner’s account can be considered fraud.
The action against Petitioner cannot be taken by SBI as concept of vicarious liability is not there in the criminal law and for the previous conduct of the company.