Supreme Court issues contempt notice to senior SBI official

New Delhi, August 10

The Supreme Court has issued a contempt of court notice to a senior SBI official for failing to comply with its order to offer a One Time Settlement (OTS) to a Himachal Pradesh business firm operating from Chandigarh with regard to adjustment of subsidy amount towards repayment of interest and instalments of loan.

A Bench led by Justice Vikram Nath asked the of SBI Managing Director, Risk Compliance & Stressed Assets Resolution Group, Nariman Point, Mumbai and SBI Ludhiana Deputy General Manager Pradeep Pandhi to be present before it on August 20 for framing of charges against them for his failure to comply with its September 30, 2021 order.

“Prima facie, we are satisfied that a case for contempt is made out. Issue notice to alleged contemnor/respondent No. 2, i.e. Mr. Swaminathan J, Managing Director, Risk Compliance & Stressed Assets Resolution Group, State Bank of India. List this case on 20.08.2024 for framing of charges,” the Bench – which also included Justice PB Varale – said in its August 6 order.

The Bench, however, clarified that “if the alleged contemnor(s)/ respondent(s), who are presently named in the contempt petition, are not holding the said post(s), in that case, the person(s) holding the said post(s) presently will remain present in the Court on 20.08.2024.”

The top court said, “In the meantime, it is open for the respondents to purge the contempt petition, if they so desire.”

The order came after senior counsel PS Patwalia submitted on behalf of AB Refer Warehousing Pvt Ltd that the SBI officials failed to implement the top court’s September 30, 2021, order to offer an OTS to the Chandigarh-based business firm with regard to adjustment of subsidy amount towards repayment of interest and instalments of loan.

The firm had written to the SBI on October 5, 2021, to accept and process the OTS in terms of the top court’s order; adjust Rs 10.50 crore from the subsidy reserve fund lying with it and refund the balance amount of Rs 4.73 crore in full and final settlement of all dues.

However, instead of complying with the top court’s order, the SBI sought to reserve the subsidy amount fund of Rs 14.66 crore NPA dues and made a new OTS demand of Rs 9.08 crore for final settlement of dues. The petitioner contended that it was ex-facie contrary to November 13, 2020, OTS which the top court had ordered the bank to comply with.