In the case of Gagan Banga & Anr. vs. State of West Bengal & Ors., the Preeminent Court tended to the issue of criminal procedures started against money related teach at the command of disappointed defaulting borrowers. The summons request was recorded by Gagan Banga and Indiabulls Lodging Back Constrained (IHFL) beneath Article 32 of the Structure, looking for assurance from different FIRs filed against them in numerous states, counting West Bengal, Uttar Pradesh, and Delhi. The applicants contended that these criminal procedures were an mishandle of handle, pointing to provide a criminal color to respectful debate emerging from credit defaults.
Key Focuses of the Case:
Petitioners' Contentions:
The applicants fought that money related educate and their officers ought to not be subject to criminal procedures in debate including defaulting borrowers. They looked for rules from the Preeminent Court to avoid such abuse of criminal law and requested the suppress of FIRs enrolled in different states.
The Supreme Court issued an interim order on April 28, 2023, halting the proceedings pertaining to the contested FIRs. This permitted the petitioners to later appeal the FIRs in jurisdictional High Courts. The Court extended the temporary protection till the High Courts made their decisions and ordered them to make a prompt conclusion on the subject within six months.
Applications for Modification and Recall:
Arguing that the previous order was issued without providing them with a chance to be heard, the Enforcement Directorate (ED) submitted an application asking the court to recall its previous ruling. Additionally, the petitioners had requested a stay of the actions pertaining to Uttar Pradesh's FIR No. 197 of 2023.
Court's Observations:
The Supreme Court emphasized that no adverse orders should be passed without giving affected parties a chance to be heard. Recognizing that the Enforcement Directorate was not heard prior to the order, the Court recalled its previous directions related to the ED’s investigation.
Modification of Previous Orders:
The Court modified its July 2023 order, clarifying that High Courts could consider applications for interim relief regarding the FIRs. It stressed that the High Courts should independently assess the petitions without being influenced by the Supreme Court's observations.
Conclusion:
This judgment highlights the delicate balance courts must maintain between protecting financial institutions from malicious criminal proceedings and allowing investigations in legitimate cases.
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TAGS: Gagan Banga Indiabulls Housing Finance Supreme Court financial institutions FIRs Enforcement Directorate Article 32 criminal proceedings defaulting borrowers due process.
