Here's a breakdown of a recent court decision involving Sanjeev Krishan Sharma and the Punjab National Bank. The court had some strong words for Sanjeev Krishan Sharma. Let’s dive into what happened.
Sanjeev Krishan Sharma was a director of a company that borrowed money from a group of banks. He promised to pay back the loan if the company couldn't, using his property as backup. When the company couldn't pay back the loan, the banks started trying to get their money back.
Sanjeev Krishan Sharma asked the court to speed up his cases in the Debt Recovery Tribunals (DRTs) and stop the bankruptcy process against him in the National Company Law Tribunal (NCLT). He said these processes were about the same debt and could end up with different decisions.
"The same debt cannot be decided at the same time by both the DRT and the NCLT."
He claimed that another person who also promised to pay back the loan was released from their promise without his agreement, which should mean he owes less. He wanted his promise canceled and his property returned.
The banks said Sanjeev Krishan Sharma was just trying to delay the process of getting their money back. They believed the legal actions were correct and that his request had no valid reasons.
The court found that Sanjeev Krishan Sharma had not shown the need to hurry his cases in the DRT and had not used other available legal options, like appealing to a higher tribunal.
"The Petitioner has made no clear effort to push for a quick hearing or decision on his cases."
The court rejected Sanjeev Krishan Sharma's request, saying he was trying to avoid the legal process. They pointed out that the bankruptcy and debt recovery processes have different rules, so there was no chance of getting different decisions.
The court ordered Sanjeev Krishan Sharma to pay ₹1,00,000 as a penalty for misusing the legal system. This money is to be given to the Poor Patients’ Fund at AIIMS, New Delhi.
This case shows how important it is to follow legal steps and use all available options before going to higher courts.
