$~131 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12389/2023 & CM APPL. 48881/2023 AMIT GUPTA .....Petitioner Through: Ms Ayushi Arya, Mr. Nitin K Gupta, Advs. versus UNION BANK OF INDIA & ORS. .....Respondents Through: Mr. OP Gaggar and Mr. Sachindra Karn, Advocates for R1 CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 29.01.2026 1. This is a writ petition filed under Article 226/227 of the Constitution of India seeking the following prayers:- “a) Setting aside/Quashing the Impugned orders dt. 28.02.2023 (not served to the Petitioner) and 22.05.2023 passed by the Identification Committee and Review Committee of the Respondent No. 1 Bank in violation ·of Clause 3(b) of the RBI Master circular 2015 and principles of natural justice and fundamental rights guaranteed to the Petitioner under Articles 14 and 21 of the Constitution of India; and b) direct Respondents to adhere to the RBI Master circular 2015 and principles of natural justice while deciding the declaration of willful defaulter against the Petitioner in future;” 2. The case of the petitioner is that a term loan of Rs. 45 crores was availed This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04 by the respondent No. 2 Company i.e., Sunworld Residency Pvt. Ltd., from respondent No. 1 Bank i.e., Union Bank of India and the loan account was classified as Non-Performing Asset (“NPA”) on 30.09.2018. The petitioner became one of the guarantor on the date availing the loan. 3. A Show Cause Notice dated 14.06.2022 was issued by respondent No. 1 Bank to the respondent No. 2 Company as well as the petitioner and other guarantors. 4. The respondent No. 1 Bank issued the impugned order dated 28.02.2023 on 01.03.2023, whereby the petitioner was declared as wilful defaulter by order of the identification committee. 5. Thereafter, the respondent No. 1 Bank vide letter dated 13.06.2023 sent a copy of the impugned order dated 22.05.2023 passed by the Review Committee of willful defaulter. 6. Hence, the present petition. 7. Ms. Arya, learned counsel for the petitioner, has drawn my attention to 3 letters, which although are not filed in the present petition, are filed in connected matter i.e., W.P. (C) 10047/2023. 8. First is the letter dated 10.10.2024 issued by respondent No. 1 bank, which is extracted below:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04 9. Second, is the letter dated 18.11.2024 issued by the Bank of Baroda, which is extracted below:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04 10.Third, is the letter dated 20.11.2024 issued by the respondent No. 1 Bank regarding release of primary security, and the same is extracted below:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04 11.Thereafter and most importantly, she draws my attention to an email dated 21.11.2024 (which although is not filed in the present petition, is filed in connected matter i.e., W.P. (C) 10047/2023.) issued by respondent No. 1 Bank to Reserve Bank of India (“RBI”), which reads as under:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04 12.A perusal of the aforesaid documents, shows that a No Due Certificate has been issued and the OTS settlement has been complied with. 13.The respondent No. 1 Bank has already requested the RBI to remove the name of the respondent No. 2 Company from RBI defaulter list. 14. In this view of the matter, I am satisfied that the fountainhead for declaring the petitioner a wilful defaulter i.e., the declaration of the account of respondent No.2 Company being an NPA, no longer survives. Additionally, pursuant to the email of respondent No. 1 Bank, the RBI has removed the name of the petitioner and respondent No. 2 Company from the list of wilful defaulter. 15. For the said reasons, the petition is allowed and the impugned orders dated 28.02.2023 and 22.05.2023 are hereby set aside. 16. The petition is disposed of in aforesaid term, along with pending applications if any. JASMEET SINGH, J JANUARY 29, 2026 / (MS) This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/02/2026 at 13:10:04