$~178 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12354/2026 & CM APPL. 57283/2026, CM APPL. 57285/2026 NIRMAL SINGH .....Petitioner Through: Mr. Jayant Mehta, Sr. Adv. with Mr. Arush Khanna, Mr. Manish Kumar Sharma, Mr. Somil Jain, Adv. Mr. Swagat Gupta, Mr. Kamlesh Kumar Mishra, Ms. Renu, Ms. Akanksha Priya, Mr. Anil, Advs. versus INDUSIND BANK LTD. & ORS. .....Respondent Through: Ms Usha Singh and Mr. Shahrukh Inam, Advs. for R1 CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 24.08.2026 CM APPL. 57284/2026 Allowed subject to all just exceptions. The applications stand disposed of. W.P.(C) 12354/2026 1. This is a writ petition filed under Article 226 of the Constitution of India seeking the following prayers:- “a. Issue an appropriate writ(s), order(s) or direction(s) in the nature of Certiorari or any other writ(s), order(s) or direction(s), thereby quashing/setting aside the Show Cause Notice dated 21.05.2026 bearing Ref. No. IBL/FRRG/DEL/2026-27/038 proposing to classify the 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 02/09/2026 at 11:36:28 Petitioner as a "Wilful Defaulter" ("Impugned Show Cause Notice") annexed as Annexure P-1; b. Issue an appropriate writ(s), order(s) or direction(s) in the nature of Certiorari or any other writ(s), order(s) or direction(s), thereby quashing/setting aside the Reasoned Order dated 13.02.2026 bearing Ref. No. IBL/FFRG/DEL/2025-26/198 classifying the Petitioner/his account being the guarantor of Borrower/Respondent No. 3, as "Fraud ("Impugned Reasoned Order") annexed as Annexure P-2 c. Issue an appropriate writ(s), order(s) or direction(s) in the nature of Certiorari or any other writ(s), order(s) or direction(s), thereby quashing/setting aside all incidental and consequential DRT, NCLT, SARFAESI, criminal complaints to EOW/Police or any other investigating agency and any other civil, criminal, regulatory and administrative actions etc. against the Petitioner (all collectively referred to as "Impugned Proceedings") initiated in pursuance of the Impugned Show Cause Notice dated 21.05.2026 and Impugned Reasoned Order dated 13.02.2026; d. Issue an appropriate writ(s), order(s) or direction(s) in the nature of mandamus or any other writ(s), order(s) or direction(s) directing Respondent No. 1 to refrain from taking, continuing, giving effect to impugned Show Cause Notice dated 21.05.2026 annexed as Annexure P-1, the 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 02/09/2026 at 11:36:28 impugned Reasoned Order dated 13.02.2026 annexed as Annexure P-2, for any coercive, penal or consequent against the Petitioner, including his declaration as a Wilful Defaulter", continuation of his classification as "Fraud", reporting or continuing to report his name to Respondent No. 2, the Fraud Monitoring Return (FMR), the List of Wilful Defaulters (LWD), Credit Information Companies or any other statutory, regulatory or investigative authority, and refraining Respondent No. 2 from taking any actions on such reporting, classification, declaration, communication in this regards and directing withdrawal of any such report already made with respect to the Petitioner, e. Issue an appropriate writ(s), order(s) or direction(s) in the nature of mandamus or any other writ(s), order(s) or direction(s) restraining the Respondents No. 1 from acting upon or giving any effect to the impugned Show Cause Notice dated 21.05.2026 annexed as Annexure P-1, the impugned Reasoned Order dated 13.02.2026 annexed as Annexure P-2, or any other incidental and consequential DRT, NCLT, SARFAESI, criminal complaints to EOW/Police or any other investigating agency, and any other civil, criminal, regulatory and administrative actions etc. against the Petitioner founded thereon and further direct Respondent No. 2 to ensure to ensure that Settlement accepted by Respondent No. 1 is duly recognised, given 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 02/09/2026 at 11:36:28 effect to and reflected in all applicable regulatory records, returns, reporting and databases;....” 2. For the reasons stated in the petition, issue notice. 3. Ms. Usha Singh, learned counsel accepts notice on behalf of the respondent No. 1. 4. There is nobody appearing on behalf of the other respondents, however, the matter is taken up for hearing. 5. The brief facts of the case are that the petitioner was appointed a Director of respondent No. 3 Company namely M/s Hacienda Projects Pvt. Ltd. in February, 2010 and resigned from the said position on 15.07.2024. 6. The respondent No. 1 Bank sanctioned credit facilities in favour of the respondent No. 3 Company and consequentially initiated proceedings against the respondent No. 3 resulting in classification of its account as a Non-performing asset. 7. It is also stated that the respondent No. 3 company is under CIRP which has been stayed by the Hon’ble Supreme Court vide order dated 03.02.2026. 8. It is the case of the petitioner that he was a personal guarantor for the credit facilities availed by the respondent No. 3. 9. Thereafter on 13.08.2026, the respondent No.1 Bank duly acknowledged the receipt of the entire payment in terms of the settlement with the petitioner and discharged the petitioner from his obligations as a personal guarantor for the respondent No. 3. 10. Despite the effective implementation of the settlement, the ‘fraud’ classification and ‘wilful defaulter’ proceedings against the petitioner 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 02/09/2026 at 11:36:28 continue to subsist. 11. Ms. Singh, learned counsel for the respondent No.1 Bank states that the matter has been settled and the respondent No. 1 Bank has already written a letter to Economic Offences Wing (EOW) informing them about the same. 12. Hence, the proceedings impugned in the present petition no longer are required to subsist against the petitioner. 13. Taking her statement on record and binding the respondent No. 1 Bank to the same, it is directed that the ‘fraud’ classification of the petitioner imposed vide Order dated 13.02.2026 hereby stands quashed and the proceedings for declaration of the petitioner as a ‘wilful defaulter’ also stands closed. 14. The petition is disposed of in the aforesaid terms along with pending applications, if any. JASMEET SINGH, J AUGUST 24, 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 02/09/2026 at 11:36:28