M/s Sumeru Associates v. Punjab National Bank

Petition under Article 226 of the Con circumstances stated in the affidavit filed pleased to issue a Writ or order more part mandamus declaring the action of the Res work to the Petitioner despite the recomm Bank vide their letter dt. 6th May 2022 lo Pelitioner firm from the Caution List representations dated 14.06.2024, 05.11.20 Petitioner to consider renew/continue his se Bank and to show him in the panel of Value illegal, arbitrary and in gross violation of prin titution of lndia praying that in the herewith, the High Court may be cularly one in the nature of writ of ondent Bank in not assigning any ndation made by the Respondent the 3rd Respondent to delist the nd also in not considering the 4 and O4.12.2024 submitted by the ices as Valuer for the Respondent of the Respondent Bank as being iples of natural justice and contrary -/ to the Handbook on Policy, Standards and Procedures for Real Estate Valuation by Banks and HFI s in India and the Punjab National Bank Policy and Standard Operating Procedure on Valuation of Assets and consequently to direct the Respondent bank to renew/continue the services of the Petitioner as Valuer. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct Respondent No.1 and 2 to renew/continue the services of the Petitioner as Valuer without reference to the Show. Cause Notice dated 15.'l 1 .2021 and any subsequenVconsequent proceedings pursuant to the same. Counsel for the Petitioner: SRI G.VIDYASAR, Sr. COUNSEL, REp. FOR SRI MAMIDI AVINASH REDDY Counsel for the Respondents: -- The Court made the following: ORDER 7/ THE HONOURABLE SRI IUSTIC N.V.SHRAVAN KUMAR WRIT PETITION N .9448 of 2025 ORDER: This writ perifion has been filed s ing the following prayer:- t Bank in not assigning nny "to declare the nction of the Respondc recommendation made by the u,ork to the Petitioner despite the thc t 6th May 2022 to the 3'd Respondent Bank uide their letter m the Caution List and also Respondent to delist the Petitioner frm in not considering the representations dated 14.06.2024, 05.11.2024 r to consider reneztt/continue and 04.72.2024 submitted by the Petitio his serttices ns Valuer for the Responde t Bnnk and to shoto him in the ns being illegal, arbitrary nnd panel of Valuers of the Respondent Ba 'nl justice and contrary to the in gross aiolation of principles of nntu Handbook on Policy Standnrds nnd Procedures for Real Estate Valuation by Bnnks and HFI s in India nd the Punjab National Bank Policy and Standard Operating Proced re on Vnluation of Assets and bank to reneu/continue the consequently to direct the Responden seroices of tfu Petitioner ns Valuer."

2. Brief facts in this writ petition are that in the yeat 200I, petitioner association was registered as a valuer und r Section 34AB of the Wealth Tax Act 7957, and the petitioner was exten ing professional services to the respondent Bank. While things stoocl thus, the respondent No.2 issued show cause notice dated 15.11.2021 to the Petiti ner, relevant portion is extracted hereunder:- "....It is obserued thnt you hnzte not co property ttthich impqct further recortery under SARFAESI action and aLso not in dues. Such in action of yours is agnins prejudicial to banks interest ruhich impncts in our banks empanelment list. You are requested to submit your reply t letter as to rohy you should not be emp anelmen t of r aluer s. " ducted due diligence of the ctions against the borronter position to recoaer the bank bank guidelines and it is ur continunnce as a ztaluer ithin 7 days of receipt of this entpanelment from Banks 2

3. Sri.G.Vidyasagar, learned Senior Counsel appearing for the petitioner would submit that petitioner on 30.12.2027, 05.01.2022 and, 77.01.2022 submitted expianation to the shor.r, cause notice dated 15.11.2021 and without considering the same, the respondent authorities placecr trre petitioner in the IBA caution list. Aggrieved by the same, petitioner filed W.p.No.15131 of 2022 and this Court uide interim order <-lated 07.04.2022 grantecr stay of further circulation Thereafter, respondent authorities had delisied the petitioner name from the IBA caution list. However, no work was assigned to the petitioner and later upon enquiry, petitioner came to know that the firm name was depaneled from the panel of valuers of the responded Bank. Learnecl senior Counsel wourd further submit that to get crarity in the matter, petitioner made an application under RTI and the z,ide letter clatett 17.08.2023, it was informed that petitioner was neither empanelled or clepancrecl with the respondent bank. Thus, the petitioner on 04.72.2023 mac.le an application for renewa[/continuation of services. However, the same was not consiclered anc] the petitioner's name was not found in the renewal [ist. 4' Learned senior Counser zoourd further submit that the petitioner on 14'06'2024, 05.11-2024 and 04.12.2024 made deta ed represeriation and. requested the respondent Bank to Re empanel the petitioner,s name into pNB panel of oaluers and the same is still is pending for consideration.

5. Learned Senior counsel on instructions would submit that the petitioner is not pressing on respondent No.3 and 4 and further restricts his 3 prayer seeking a direction to respond t Nos.1 and 2 to dispose the petitioner's representahons dated 14.06.202 , in a time bound period.

6. In z;iezt of the submission made by leam d Senior counsel for the petitioner and zoithout expressing any opinion on he merits of the case, this urit petition is disposed of directing the resp dent Nos.l anrl 2 to dispose the petitioner's representatio n da teil L4.06.20 4, 05.11.2024 and 04.12.2024 and pdss appropriate orders strictly in accorcl nce zaith laut, as expeditiously as possible, preferably uithin a period of t rce (03) uteek from the date of receipt of copy of this order and communi te the same to the petitioner.

7. Accordingly this writ petition ls disposed of. Miscellaneous applications, if any pending, shall stand clo ed. No order as to costs 1 NOTE:- That the paragraph Nos.4 & 6 of the daled 27.03.2025 in W.P.No.9448 of 2 modified as per the orders of the Hon'ble dated 29.04.2025 in l.A.No.2 ot 2025. This amended order shall substitu earlier order which has already been disp on02.04.2025. SD/.P. PADMANABHA REDDY DEPUTY REGISTRAR orde r 5is Court SD/- P.PONNA KRISHNA TANT REGISTRAR SECTION OFFICER To //TRUE CO Yil

1. The Deputy Circle Head/AGM SAMD Circle Office, Rejency Plaza, 1st Floo Hyderabad-15.

2. The Managing Director, Punjab Nation New Delhi- 110075

3. lndian Banks Association, 6th Floor C Complex, Cuffe Parade, Mumbai 40000 4. The General Manager, Reserve Ban Supervision Reserve Bank of lndia, Centre Mumbai - 400 005.

5. One CC to SRI MAMIDI AVINASH RED 6. Two CD Copies Departmenl, Punjab National Bank, Plot No.3, Mythri Vihar, Ameerpet, I Bank, Plot No.4, secor-10, Dwarka, ntre 1 Building, World Trade Centre of lndia, Department of Banking ntral Office Centre 1, World Trade Y, Advocate [OPUC] BSR s E)e HIGH COURT DATED: 2710312025 29104t2025 AMENDED ORDER WP.No.9448 of 2025 :- Sr4f6 e o 31 IlJ$ T6 t .) r-) ,. t :l' ^ DISPOSING OF THE WRIT PETITION, WITHOUT COSTS @r*io ga-.- 'rs\k\*