w w w . L a w y e r S e r v i c e s . i n



Parthas Textiles, Ernakulam, Represented by Its Managing Partner, Praveen Raj Rajendran v/s The Reserve Bank of India, Mumbai, Represented by Its Chief General Manager & Others


Company & Directors' Information:- RAJ CORPORATION LIMITED [Active] CIN = U74900UP2008PLC035742

Company & Directors' Information:- I C TEXTILES LIMITED [Active] CIN = L18101WB1983PLC035976

Company & Directors' Information:- T C S TEXTILES PRIVATE LIMITED [Amalgamated] CIN = U17111TZ1995PTC005857

Company & Directors' Information:- V R V TEXTILES LIMITED [Active] CIN = U17110AP2005PLC045224

Company & Directors' Information:- K K P TEXTILES PRIVATE LIMITED [Active] CIN = U17115TZ1984PTC003986

Company & Directors' Information:- A B T TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ2003PTC010513

Company & Directors' Information:- V M R TEXTILES PRIVATE LIMITED [Active] CIN = U17121TZ2008PTC014812

Company & Directors' Information:- V R TEXTILES PRIVATE LIMITED [Under Liquidation] CIN = U17111TZ1995PTC006793

Company & Directors' Information:- P V S TEXTILES PRIVATE LIMITED [Under Liquidation] CIN = U17115TZ1988PTC002259

Company & Directors' Information:- H L TEXTILES LIMITED [Active] CIN = U17115DL1990PLC040966

Company & Directors' Information:- K C TEXTILES LIMITED [Active] CIN = L74899DL1979PLC009471

Company & Directors' Information:- BANK OF INDIA LIMITED [Active] CIN = U99999MH1906PLC000243

Company & Directors' Information:- V R TEXTILES PRIVATE LIMITED [Amalgamated] CIN = U17111TZ1956PTC000266

Company & Directors' Information:- F T TEXTILES PRIVATE LIMITED [Active] CIN = U17120MH2010PTC198723

Company & Directors' Information:- S K S TEXTILES LIMITED [Active] CIN = U17000MH1997PLC111406

Company & Directors' Information:- S K S TEXTILES PRIVATE LIMITED [Active] CIN = U17000MH1997PTC111406

Company & Directors' Information:- P M TEXTILES INDIA PRIVATE LIMITED [Active] CIN = U17111TZ2005PTC011677

Company & Directors' Information:- O T TEXTILES PVT LTD [Active] CIN = U17299WB1988PTC045004

Company & Directors' Information:- PRAVEEN INDIA LTD . [Active] CIN = L21029WB1983PLC036326

Company & Directors' Information:- A P A TEXTILES INDIA PRIVATE LIMITED [Active] CIN = U17111TZ2004PTC011413

Company & Directors' Information:- J A TEXTILES PRIVATE LIMITED [Active] CIN = U18101DL2003PTC119613

Company & Directors' Information:- A D TEXTILES PRIVATE LIMITED [Active] CIN = U45201DL2005PTC133552

Company & Directors' Information:- P N S TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ2003PTC010796

Company & Directors' Information:- H. M. B. S. TEXTILES PRIVATE LIMITED. [Active] CIN = U18101DL2008PTC174991

Company & Directors' Information:- H. M. B. S. TEXTILES PRIVATE LIMITED. [Active] CIN = U45100DL2008PTC174991

Company & Directors' Information:- C. S. TEXTILES PRIVATE LIMITED [Active] CIN = U17120WB2010PTC142976

Company & Directors' Information:- D D TEXTILES PRIVATE LIMITED [Active] CIN = U17115PB1997PTC020098

Company & Directors' Information:- J B M TEXTILES PRIVATE LIMITED [Active] CIN = U51311DL2004PTC127811

Company & Directors' Information:- B & C TEXTILES PRIVATE LIMITED [Active] CIN = U17299DL1996PTC081977

Company & Directors' Information:- D D TEXTILES (INDIA) PRIVATE LIMITED [Active] CIN = U17290PB2011PTC035147

Company & Directors' Information:- T B S TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1995PTC006253

Company & Directors' Information:- A. P. M. TEXTILES PRIVATE LIMITED [Active] CIN = U17121TN2007PTC062118

Company & Directors' Information:- C & R TEXTILES PRIVATE LIMITED [Active] CIN = U74899DL1994PTC058093

Company & Directors' Information:- S E TEXTILES PRIVATE LIMITED [Active] CIN = U74899DL1994PTC057922

Company & Directors' Information:- G T M TEXTILES PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1993PTC055402

Company & Directors' Information:- R V J TEXTILES PRIVATE LIMITED [Active] CIN = U17116AP1998PTC029328

Company & Directors' Information:- S V G TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ2003PTC010889

Company & Directors' Information:- H V S TEXTILES PRIVATE LIMITED [Active] CIN = U18101TN1997PTC037762

Company & Directors' Information:- RAJ COMPANY PRIVATE LIMITED [Active] CIN = U74999PB1949PTC000515

Company & Directors' Information:- S R N TEXTILES PRIVATE LIMITED [Active] CIN = U18101TZ1993PTC004709

Company & Directors' Information:- K M TEXTILES PRIVATE LIMITED [Active] CIN = U17100MH2011PTC223718

Company & Directors' Information:- C N V TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1993PTC004624

Company & Directors' Information:- N S G TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1999PTC008832

Company & Directors' Information:- C P R TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC004932

Company & Directors' Information:- D S V TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005248

Company & Directors' Information:- A N M B T TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1996PTC007087

Company & Directors' Information:- L S D TEXTILES LIMITED [Active] CIN = U17115TZ1991PLC003293

Company & Directors' Information:- G R G TEXTILES LIMITED [Strike Off] CIN = U17111TZ1995PLC006708

Company & Directors' Information:- V G TEXTILES PRIVATE LIMITED [Active] CIN = U17115TZ1989PTC003055

Company & Directors' Information:- G V D TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1983PTC001351

Company & Directors' Information:- K V TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ1990PTC002969

Company & Directors' Information:- R C TEXTILES PRIVATE LIMITED [Strike Off] CIN = U51311MH1997PTC112439

Company & Directors' Information:- N S U K TEXTILES PRIVATE LIMITED [Active] CIN = U17122TN2009PTC072399

Company & Directors' Information:- R P G TEXTILES PRIVATE LIMITED [Active] CIN = U17111UP1984PTC006487

Company & Directors' Information:- T M TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17115TZ1982PTC001222

Company & Directors' Information:- C M TEXTILES LIMITED [Active] CIN = U99999MH1980PLC023595

Company & Directors' Information:- P R TEXTILES (INDIA) LTD [Active] CIN = L17299WB1980PLC033057

Company & Directors' Information:- P S TEXTILES PRIVATE LIMITED [Active] CIN = U17115PB1992PTC012064

Company & Directors' Information:- S G TEXTILES INDIA PRIVATE LIMITED [Active] CIN = U17116WB1997PTC084025

Company & Directors' Information:- K D S TEXTILES PVT LTD [Active] CIN = U17119GJ1988PTC010893

Company & Directors' Information:- B A TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1995PTC005906

Company & Directors' Information:- S L P TEXTILES PRIVATE LIMITED [Active] CIN = U17219WB2007PTC113540

Company & Directors' Information:- A S P TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1985PTC001615

Company & Directors' Information:- R G TEXTILES PVT LTD [Strike Off] CIN = U17111WB1992PTC057339

Company & Directors' Information:- D C M TEXTILES LIMITED [Active] CIN = U74899DL1996PLC076626

Company & Directors' Information:- K K V TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ2002PTC010352

Company & Directors' Information:- R L F TEXTILES LTD [Strike Off] CIN = U19100TG1984PLC004897

Company & Directors' Information:- D P F TEXTILES PRIVATE LIMITED [Active] CIN = U17115TZ1953PTC000048

Company & Directors' Information:- M A TEXTILES PRIVATE LIMITED [Active] CIN = U17100MH1988PTC049578

Company & Directors' Information:- R N TEXTILES PVT LTD [Active] CIN = U17111WB1985PTC038484

Company & Directors' Information:- V M K TEXTILES PRIVATE LIMITED [Active] CIN = U17299DL2007PTC159355

Company & Directors' Information:- G RAJ & COMPANY PVT LTD [Active] CIN = U67120WB1993PTC058140

Company & Directors' Information:- A P TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ1994PTC005208

Company & Directors' Information:- D AND T TEXTILES PVT LTD [Strike Off] CIN = U17111PB1993PTC014005

Company & Directors' Information:- G S TEXTILES PVT LTD [Strike Off] CIN = U17124RJ1982PTC002445

Company & Directors' Information:- J C TEXTILES PRIVATE LIMITED [Active] CIN = U74899DL1985PTC021279

Company & Directors' Information:- M J TEXTILES PRIVATE LIMITED [Active] CIN = U17299CH1991PTC011571

Company & Directors' Information:- R M RAJ AND CO PRIVATE LIMITED [Strike Off] CIN = U99999DL1952PTC002146

Company & Directors' Information:- J. D. TEXTILES PRIVATE LIMITED [Active] CIN = U17291HR2007PTC037065

Company & Directors' Information:- J & K TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111JK1983PTC000607

Company & Directors' Information:- P S G V TEXTILES PRIVATE LIMITED [Under Process of Striking Off] CIN = U17111TZ1985PTC001617

Company & Directors' Information:- H & G TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17120MH2008PTC179114

Company & Directors' Information:- B L TEXTILES PRIVATE LIMITED [Amalgamated] CIN = U18101DL2005PTC141251

Company & Directors' Information:- N D TEXTILES PRIVATE LIMITED [Under Process of Striking Off] CIN = U17120MH1996PTC098362

Company & Directors' Information:- J S B K TEXTILES PRIVATE LIMITED [Active] CIN = U18101UP1993PTC015268

Company & Directors' Information:- R S K TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ1997PTC007852

Company & Directors' Information:- G. J. TEXTILES PRIVATE LIMITED [Active] CIN = U17290WB2008PTC125509

Company & Directors' Information:- F M TEXTILES PRIVATE LIMITED [Active] CIN = U17299WB2004PTC099533

Company & Directors' Information:- V H TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ2000PTC009307

Company & Directors' Information:- K P U TEXTILES PRIVATE LIMITED [Active] CIN = U17120KA2015PTC083217

Company & Directors' Information:- G N M TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1980PTC000975

Company & Directors' Information:- S P TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC006496

Company & Directors' Information:- R S M TEXTILES INDIA PRIVATE LIMITED [Strike Off] CIN = U17111TZ2005PTC011608

Company & Directors' Information:- S B TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17200WB2007PTC119989

Company & Directors' Information:- S P K TEXTILES PRIVATE LIMITED [Strike Off] CIN = U51311KA1981PTC004560

Company & Directors' Information:- J J TEXTILES LTD [Strike Off] CIN = U51226WB1984PLC037980

Company & Directors' Information:- PRAVEEN & COMPANY PRIVATE LIMITED [Strike Off] CIN = U99999DL1999PTC098397

Company & Directors' Information:- GENERAL BANK PRIVATE LIMITED [Dissolved] CIN = U93090TN1935PTC000845

Company & Directors' Information:- P V K TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1995PTC005805

Company & Directors' Information:- K G TEXTILES PRIVATE LIMITED [Active] CIN = U17111TZ1986PTC001770

Company & Directors' Information:- B S N TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC006808

Company & Directors' Information:- R P J TEXTILES LIMITED [Active] CIN = U17120TZ2013PLC019661

Company & Directors' Information:- A P R TEXTILES INDIA PRIVATE LIMITED [Strike Off] CIN = U18101TZ2009PTC015699

Company & Directors' Information:- M K H TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17122KA2010PTC056172

Company & Directors' Information:- S N TEXTILES PVT LTD [Active] CIN = U17299WB1989PTC045878

Company & Directors' Information:- N BANK LTD [Strike Off] CIN = U65191WB1924PLC000442

Company & Directors' Information:- RAJ & RAJ PVT. LTD. [Active] CIN = U51109WB1991PTC052055

Company & Directors' Information:- M. D. TEXTILES PRIVATE LIMITED [Active] CIN = U18104DL2009PTC188566

Company & Directors' Information:- V S TEXTILES PRIVATE LIMITED [Strike Off] CIN = U74899DL1987PTC028660

Company & Directors' Information:- S D J TEXTILES INDIA PRIVATE LIMITED [Strike Off] CIN = U18101DL2005PTC137407

Company & Directors' Information:- P V RAJ TEXTILES P LTD [Strike Off] CIN = U17120MH1991PTC060501

Company & Directors' Information:- K B TEXTILES PVT LTD [Strike Off] CIN = U99999MH1981PTC024167

Company & Directors' Information:- A K TEXTILES PVT LTD [Strike Off] CIN = U17111OR1989PTC002216

Company & Directors' Information:- N H TEXTILES PVT LTD [Converted to LLP] CIN = U17119GJ1989PTC012639

Company & Directors' Information:- K N TEXTILES PRIVATE LIMITED [Converted to LLP] CIN = U17119GJ1989PTC012640

Company & Directors' Information:- A V P TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17100MH2004PTC148927

Company & Directors' Information:- M L TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111UP1994PTC016274

Company & Directors' Information:- R B D TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17110MH2004PTC144244

Company & Directors' Information:- A S A TEXTILES PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U17299DL2006PTC156585

Company & Directors' Information:- J N TEXTILES PRIVATE LIMITED [Active] CIN = U18101DL2005PTC133038

Company & Directors' Information:- A J TEXTILES PRIVATE LIMITED [Strike Off] CIN = U18101UP1987PTC008611

Company & Directors' Information:- G M TEXTILES PVT LTD [Strike Off] CIN = U17124RJ1980PTC002020

Company & Directors' Information:- G. L TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17120MH1972PTC015600

Company & Directors' Information:- P N N BANK LIMITED [Strike Off] CIN = U65921TZ1948PLC000153

Company & Directors' Information:- K R V TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17219TN2008PTC067823

Company & Directors' Information:- J V C TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ2007PTC014008

Company & Directors' Information:- U D TEXTILES COMPANY PRIVATE LIMITED [Strike Off] CIN = U74990MH2011PTC214136

Company & Directors' Information:- V A TEXTILES PRIVATE LIMITED [Converted to LLP] CIN = U17100MH2003PTC139499

Company & Directors' Information:- A-1 TEXTILES PRIVATE LIMITED [Active] CIN = U17115PN2006PTC022178

Company & Directors' Information:- CHIEF TEXTILES PRIVATE LIMITED [Under Process of Striking Off] CIN = U17309MH2017PTC293825

Company & Directors' Information:- M G TEXTILES PRIVATE LIMITED [Strike Off] CIN = U18100MH2005PTC151631

Company & Directors' Information:- G. S. P. TEXTILES PRIVATE LIMITED [Active] CIN = U17121DL2007PTC161055

Company & Directors' Information:- H R M TEXTILES PRIVATE LIMITED [Active] CIN = U17200DL2012PTC243028

Company & Directors' Information:- N C TEXTILES PRIVATE LIMITED [Strike Off] CIN = U18101DL1999PTC098931

Company & Directors' Information:- A N TEXTILES PRIVATE LIMITED [Strike Off] CIN = U18101DL2005PTC137126

Company & Directors' Information:- S A R TEXTILES PRIVATE LIMITED [Active] CIN = U51311DL2005PTC137288

Company & Directors' Information:- M S C TEXTILES INDIA PRIVATE LIMITED [Under Process of Striking Off] CIN = U74140KA2014PTC073277

Company & Directors' Information:- B & B TEXTILES PRIVATE LIMITED [Strike Off] CIN = U18100GJ2012PTC071872

Company & Directors' Information:- D G TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111DL1994PTC058228

Company & Directors' Information:- J. S. TEXTILES PRIVATE LIMITED [Strike Off] CIN = U29221UP1978PTC004562

Company & Directors' Information:- R R TEXTILES PVT LTD [Active] CIN = U17115CH1988PTC008260

Company & Directors' Information:- R K TEXTILES PRIVATE LIMITED [Strike Off] CIN = U99999MH1960PTC011821

Company & Directors' Information:- R R H TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17121DL2006PTC152944

Company & Directors' Information:- R H TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17121DL2006PTC153520

Company & Directors' Information:- H R TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17126DL2006PTC152949

Company & Directors' Information:- CORPORATION BANK LTD [Dissolved] CIN = U99999KA1901PLC000893

Company & Directors' Information:- CORPORATION BANK LIMITED [Strike Off] CIN = U99999KA1972PLC001067

Company & Directors' Information:- K AND C BANK LIMITED [Dissolved] CIN = U65191KL1928PLC000529

Company & Directors' Information:- GENERAL CORPORATION LIMITED [Not available for efiling] CIN = U99999MH1926PTC001261

Company & Directors' Information:- CORPORATION BANK LIMITED [Not available for efiling] CIN = U99999MH1936PTC002552

Company & Directors' Information:- GENERAL CORPORATION LIMITED [Dissolved] CIN = U99999MH1946PLC007742

    WP(C). No. 3942 of 2021 (P)

    Decided On, 10 March 2021

    At, High Court of Kerala

    By, THE HONOURABLE MR. JUSTICE N. NAGARESH

    For the Petitioner: C. Ajith Kumar, Advocate. For the Respondents: R1, Millu Dandapani, SC., R2-R3, Sunil Shanker, K. Arundhathi, R4, Denu Joseph, Bibin Babu, Advocates, P. Vijayakumar, ASGI.



Judgment Text

1. The petitioner is before this Court seeking to reconsider the request made by the petitioner in Ext.P4 application and to direct respondents 2 and 3 to provide request letter to the 4th respondent for issuing 'No Objection Certificate' for lending of Emergency Credit Line Guarantee Scheme (ECLGS) for the proportionate 20% of credit facilities availed by the petitioner from the 4th respondent, as per Ext.P1 scheme. The petitioner has sought for a further direction to 2nd and 3rd respondents to extend Ext.P1 Emergency Credit Line Guarantee Scheme to the petitioner, by providing a pre-approved loan upto 20% of the loan outstanding as on 29.02.2020, with respect to the financial facilities enjoyed by the petitioner with the 4th respondent.2. The pleadings in the writ petition would show that the petitioner has applied for the benefit under Ext.P1 Emergency Credit Line Guarantee Scheme (ECLGS) from the 2nd respondent. The petitioner is a customer of the 2nd respondent-Bank. It is an admitted position that the 2nd respondent has already granted credit facility of 20% of the outstanding loan amount, to the petitioner in the light of Ext.P1 Scheme.3. The case of the petitioner is that the petitioner has credit facilities with the 4th respondent Financial Institution also and in the light of Ext.P1 Scheme, in case a borrower wishes to take from any particular lender an amount of more than the proportional 20% of the outstanding credit that the borrower has with that particular lender, a 'No Objection Certificate' would be required from such lender whose share of ECLGS loan is being proposed to be taken from the particular lender. What the petitioner seeks from the 2nd respondent is additional 20% loan amount under the ECLGS, in respect of the credit facility maintained by the petitioner with the 4th respondent Financial Institution.4. When the 2nd respondent did not positively respond to the said request, the petitioner filed WP(C) No. 27356/2020. This Court after hearing the parties, ordered that the petitioner would be free to approach the 4th respondent and directed the 4th respondent to consider the application for NOC which would be submitted by the petitioner. The 2nd respondent was directed to reconsider the request made by the petitioner in Ext.P7 application, taking note of Clause 15 of Ext.P2 Scheme. The 2nd respondent herein considered the request of the petitioner in compliance of the said Ext.P6 judgment of this Court.5. The 2nd respondent declined additional 20% financial aid. The 2nd respondent held that though Clause 13 of Ext.P1 Scheme provides 100% guarantee given by the 5th respondent-National Credit Guarantee Trustee Company Ltd. as per Clause 15 of the Scheme, in the event of invocation of guarantee by the Bank, only 75% will be paid upfront and the remaining 25% will be paid only on conclusion of recovery proceedings or decree getting time barred, which would naturally take years. Therefore, the Bank will have to make provision for the 25% till conclusion of the proceedings and it will be a hit to the balance sheet of the Bank. On this consideration, the 2nd respondent declined the request of the petitioner.6. The learned counsel for the petitioner submits that the 2nd respondent need not worry about any loss being caused due to an additional facility sought for because the repayment of the same is guaranteed by the 5th respondent- National Credit Guarantee Trustee Company Ltd. Therefore the 2nd respondent is not going to incur any financial liability whatsoever.7. The learned counsel for the petitioner argues that Ext.P1 Scheme has been framed by the authorities in order to extend genuine help to business concerns in the COVID 19 pandemic situation. The petitioner was bank's customer for the last so many years. Till 29.02.2020, the petitioner has not committed any default whatsoever in respect of repayment either to the 2nd respondent Bank or to the 4th respondent Financial Institution. As the credit dealings of the petitioner is beyond doubt, there is no reason whatsoever for the 2nd respondent to decline the request.8. The learned counsel for the petitioner submitted that the credit facility being a part of a Scheme provided by the National Credit Guarantee Trustee Company Ltd., the 2nd respondent has no discretion in these matters, in respect of the specific provisions contained in Ext.P1 Scheme. Ext.P7 communication of the 2nd respondent does not disclose exercise of that discretion in proper manner. As the petitioner is eligible and entitled to additional 20% credit facility from the 2nd respondent, the 2nd respondent is liable to pay the same to the petitioner.9. The learned Standing Counsel for the 1st respondent-RBI would submit that the 1st respondent is not at all a necessary party to the writ petition and has been dragged into the litigation without any reason.10. Heard the learned counsel for the petitioner, the learned Standing Counsel for the 1st respondent and the learned Standing Counsel appearing for respondents 2 and 3. I have also heard the learned ASGI appearing for the 5th respondent-National Credit Guarantee Trustee Company Ltd.11. The case of the petitioner is that the 2nd respondent is bound to provide additional credit facility to the extent of 20% in respect of the loan outstanding of the petitioner with the 4th respondent Financial Institution under Clause 15 of Ext.P11 Scheme. It is to be noted that the 2nd respondent has already extended credit facility to the tune of 20% in respect of the accounts maintained by the petitioner with them. The contention of the petitioner in the instant writ petition is that the 2nd respondent is responsible for providing additional credit facility in respect of the loan accounts maintained by the petitioner with the 4th respondent Financial Institution.12. This Court considered the said claim of the petitioner in WP(C) No. 27356/2020 filed by the petitioner. This Court in paragraph 11 of Ext.P6 judgment held that the 2nd respondent cannot be compelled to extend the benefit sought for by the petitioner. In paragraph 10 also, this Court held that for extension of said facility in respect of the 4th respondent, it would be necessary for the specific lender (the 2nd respondent) to agree to provide ECLGS facility on behalf of other lenders. In this case, the 2nd respondent has to agree for the same. The 2nd respondent obviously, has not agreed.13. The contention of the learned counsel for the petitioner is that when this Court directed the 2nd respondent to reconsider the issue, the 2nd respondent should have exercised its discretion in a just and proper manner and agreed for the same. The learned counsel for the petitioner further pointed out that this Court had directed that a decision shall be taken under Clause 15 of Ext.R2(a) Scheme.14. The petitioner seeks the benefit as provided under Clause 8 of Ext.P1 scheme. The relevant provisions in Ext.P1 are as follows:* “In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or multiple lenders depending upon the agreement between the borrower and the MLI.* In case the borrower wishes to take from any lender an amount more the proportional 20% of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from such lenders whose share of ECLGS loan is being proposed to be taken from the specific lender. However, it would be necessary for the specific lender to agree to provide ECLGS facility on behalf of such of the lenders”.(underline supplied)The provision would make it clear that it would be necessary for the specific lender to agree to provide ECLGS facility on behalf of other lenders.15. The duty and discretion cast upon the 2nd respondent-Bank under Ext.P1 Scheme, is one to be exercised applying prudent business principles and commercial practices. The sai

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d duty and discretion cannot be equated with one exercised by State and its instrumentalities under Administrative law. The issue is purely within the realm of contract. In the case of the petitioner, the 2nd respondent considered the application and decided not to extend the additional facilities to the petitioner.16. The 2nd respondent has considered the risk the Bank will be put to if such additional facility is extended to the petitioner. This is a decision which the 2nd respondent is entitled to take on prudent business principles. This Court in exercise of the power under Article 226 of the Constitution cannot direct the unwilling 2nd respondent to extend such additional credit facilities to the petitioner in respect of the accounts maintained by him with the 4th respondent.In the circumstances, the writ petition is found devoid of merits and it is hence dismissed.
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