2019 (8) TMI 1722 - HC - Insolvency and Bankruptcy

Validity of Master s Circular of wilful defaulters - Account classified as wilful default or not - HELD THAT - There are procedural irregularities in the bank arriving at the decision to classify the account as a wilful default - In the facts of the present case, it would be appropriate to permit the bank to initiate proceedings under the Master s Circular for wilful defaulters in respect of the subject account, in accordance with law. No doubt, the bank will communicate the decision of the identification committee to the persons responsible, in accordance with law. Petition disposed off.

Summary

The Calcutta High Court ruled on a writ petition challenging a bank's decision on wilful defaulters. Procedural irregularities were found in the bank's decision-making process. The court allowed the bank to proceed under the Master's Circular for wilful defaulters, ensuring proper communication and legal procedures. The classification issues are to be addressed in future proceedings. WP No. 392 of 2019 was disposed of without costs.