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Mumbai is a financial capital, lawful recovery proceedings cannot be construed as suicide abetment: Counsel for Edelweiss CEO | India News
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MUMBAI: The Bombay high court on Friday began hearing submissions on behalf of Raj Kumar Bansal the Managing Director and Chief Executive Officer (CEO) of Edelweiss Asset Reconstruction Company Ltd and its chairperson Rashesh Shah and three others accused of abetment of suicide of Bollywood’s art director Nitin Desai.
The five accused have filed quashing petitions against an August 4 first information report (FIR) lodged by Desai’s widow over his August 2 death by suicide.
Senior counsel Amit Desai for the Edelweiss top brass and employees cited over half a dozen judgment of the HC to argue that each of them said a lender is allowed to take all steps legally available for recovery of dues and “such a process cannot be construed as abetment of any suicide”.
Desai also relied on the Supreme Court order in Arnab Goswami’s case where he too was booked for suicide abetment in similar money recovery circumstances, he said to stress that the apex court has clearly laid down the ingredients of such an offence to mean direct instigation.
Desai who said his clients and he lamented the loss of Desai who they respected highly as an acclaimed art director, said however, Mumbai is a financial capital of India and “we owe it to protect the reputation of the city as a financial capital’’. He said “these cases where facts don’t support’’ the allegations ought not to be permitted.
To a query from the bench of Justice Nitin Sambre and Justice R N Laddha, Desai said till end of 2018 the payments were regular for loans taken in 2016 and 2018, and problems arose thereafter. Loans were taken for general corporate purposes as well as a capital for a theme park, he said.
The HC will continue hearing the matter on Monday.
Desai had been found dead a day after the National Company Law Appellate Tribunal (NCLAT) in Delhi dismissed his appeal against initiation of insolvency proceedings over his company ND’s Art World after creditors Edelweiss filed a company petition claiming recovery of over Rs 250 crore. Desai’s company had taken two loans worth Rs 181 crore.
The five accused have filed quashing petitions against an August 4 first information report (FIR) lodged by Desai’s widow over his August 2 death by suicide.
Senior counsel Amit Desai for the Edelweiss top brass and employees cited over half a dozen judgment of the HC to argue that each of them said a lender is allowed to take all steps legally available for recovery of dues and “such a process cannot be construed as abetment of any suicide”.
Desai also relied on the Supreme Court order in Arnab Goswami’s case where he too was booked for suicide abetment in similar money recovery circumstances, he said to stress that the apex court has clearly laid down the ingredients of such an offence to mean direct instigation.
Desai who said his clients and he lamented the loss of Desai who they respected highly as an acclaimed art director, said however, Mumbai is a financial capital of India and “we owe it to protect the reputation of the city as a financial capital’’. He said “these cases where facts don’t support’’ the allegations ought not to be permitted.
To a query from the bench of Justice Nitin Sambre and Justice R N Laddha, Desai said till end of 2018 the payments were regular for loans taken in 2016 and 2018, and problems arose thereafter. Loans were taken for general corporate purposes as well as a capital for a theme park, he said.
The HC will continue hearing the matter on Monday.
Desai had been found dead a day after the National Company Law Appellate Tribunal (NCLAT) in Delhi dismissed his appeal against initiation of insolvency proceedings over his company ND’s Art World after creditors Edelweiss filed a company petition claiming recovery of over Rs 250 crore. Desai’s company had taken two loans worth Rs 181 crore.
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