• Order by NCLT not obeyed by State Bank of India

My company Rohan consortium pvt.ltd was de listed from R.O.C. And simultaneously my only account in state bank of india was closed and balance amount (in my current account)banker demand draft was given by the bank. on asking for the reason they said that since we are delisted from ROC CIN number remains cancelled and thereby account is closed.
later on we filled our petition at NCLT and got an order from court(3)to revive my account after a penalty of 1.25 lakhs and asked bank to pay me not only 1.25lakh but also an added amount of 0.75 lakhs,I am attaching the court order and further correspondences with the bank
Asked 4 years ago in Business Law

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11 Answers

If bank has not obeyed the order of NCLT a execution petition before nclt has to be filed as prescribed under rule 56 nclt under NCLT Form 8.

Nclt in execution has same power as the civil.court and can issue attachment and recovery warrants to enforce the order.

Section 424(3) of the Act empowers the NCLT to enforce its own order in the same manner as if it were a decree made by a civil court. Implying that in order to enforce its order, the NCLT would be guided by the principles laid down under Order 21 of the Code of Civil Procedure, 1908 (“CPC”) which comprehensively lays down the procedure for execution of decrees and orders.

Further, Rules 56 and 57 of the NCLT Rules, 2016 (“the Rules”) give teeth to the executory powers of the NCLT laid down under Section 424(3) of the Act. Rule 56 lays down the format for execution application. Rule 57(2) states that while enforcing its order, the NCLT can issue attachment or recovery warrants. Further a penalty can be levied by nclt on non compliance of the order.

So better make a letter attach order of nclt with it ask bank to give in writing why it is not following the order of nclt and then further if bank denies file an execution petition before nclt.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. I am not able to see the documents uploaded by you

2. Anyway if you have an order of NCLT giving a direction to the bank then the bank is liable to comply with that order

3. If the bank has failed to do so then it amounts to contempt of Court's order for which you can file a contempt petition against the authorised representative of the bank against whom NCLT passed the order

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

See we can understand your trouble but since your company was dilisted under non compliance under 248 companies act or any unusual activity in monetary transcitions so since nclt has restored.the name.and has ordered bank file execution before nclt and seek relief.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

If the order of NCLT is not being complied then you have the option of filing a contempt petition against the SBI.

Get in touch with a lawyer for the same.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

later on we filled our petition at NCLT and got an order from court(3)to revive my account after a penalty of 1.25 lakhs and asked bank to pay me not only 1.25lakh but also an added amount of 0.75 lakhs,I am attaching the court order and further correspondences with the bank

What do you want to clarify by posting this query?

You would like to initiate steps to recover money from bank that was ordered to pay to you,

If the bank do not cooperate or if there is no appeal or revision on the impugned order by NCLT you may file an execution petition to execute the order of NCLT.

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

my account is closed since 17/11/2017 abruptly my companies activities are brought to halt.my running company with 7 skilled and few unskilled employees had to be asked to leave.my outstanding in market has become unrecoverable at the same time my payable were forcibly taken away by my suppliers.All my movable assets have been taken away.my business being contractual my non adherence to my customers can get me in deep trouble.

All these happened due to delisting of your company by ROC.

But how can you hold bank responsible for this debacle?

Since you have got an order in your favor through NCLT against the bank you may pursue that subject properly.

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

if SBI has not complied with court orders take out contempt of court proceedings against SBI

2) no attachment s mentioned by you have been attached to the query

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

issue legal notice to SBI to comply with court orders

2) take contempt of court proceedings as advised

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

Dear Sir

Your business reputation is lowered due to the action of SBI. Better file a case of defamation and claim a big amount as compensation.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

You can do the following:

1. File an application against the bank for contempt of court;

2. You can also seek compensation on the grounds of mental agony;

3. You can also approach the HC being in violation of your fundamental rights to work/profession;

4. File a writ in HC which is the means of playing pressure tactics.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

No Court order ?

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

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