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TMI Blog2014 (7) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... et in terms of the guidelines of the Reserve Bank of India (hereafter the RBI) and that the committee on identification of wilful defaulters had identified it as a wilful defaulter for the reasons mentioned therein. The petitioning company was granted 15 days time for submission of representation, if any, for consideration by the Grievance Redressal Committee of the bank (hereafter the Committee) on identification of wilful defaulters. Similar notice was issued to the directors of the petitioning company, who are the proforma respondents in this writ petition. The petitioning company responded to the aforesaid notice by a representation dated June 10, 2014 wherein it was contended that the default made on its behalf was not capable of being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Grievance Redressal Committee." 4. By a further representation dated June 30, 2014, the petitioning company stressed that refusal of legal representation was in essence a violation of the principles of natural justice and the rights guaranteed under the Constitution of India. It was further brought to the notice of the bank that the petitioning company had been afforded opportunity to be represented by advocates of its choice by Corporation Bank, a member of the consortium which granted financial assistance to the petitioning company and, accordingly, it was reiterated that the hearing would be attended by the Chairman cum Managing Director and the other Directors alongwith their respective advocates. 5. The bank by its letter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings. He also contended that grant of legal assistance would not prejudice the bank and the bank may be directed to reconsider the prayer for grant of permission to be represented by an advocate of its choice. Reliance was placed on the decision of the Supreme Court reported in (1991) 2 SCC 283 (J. K. Aggarwal v. Haryana Seeds Development Corporation Ltd. and ors.), in support of the contention that the petitioning company is entitled to a fair deal. 8. Per contra, Mr. Mitra, learned senior advocate for the bank contended that the allegation against the petitioning company is simple; there has been a default in meeting the obligations for repayment and that the funds were not utilised for the specific purpose for which it was availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of refusal suffers from is not such that the petitioning company would be entitled to any relief on this writ petition for the reasons that follow. 12. My understanding of the ratio of the decision in J. K. Aggarwal (supra), relied on by Mr. Sarkar, and the other decisions of the Supreme Court as well as this Court in regard to representation of a delinquent employee by an advocate in a departmental enquiry initiated against him is this. A delinquent employee cannot claim legal representation as of right; but where legal representation is not excluded expressly or by necessary implication, it is open to the delinquent employee to seek legal representation on cogent grounds and if a request in this behalf is received, the employer in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th public funds in the manner agreed upon by and between the parties. That the petitioning company is a defaulter is not in question; what is of relevance is whether the default is wilful or not. 14. It has not been shown that the officers of the bank comprising the Committee are legally trained persons for which there could be a reasonable likelihood of a failure of justice, if the petitioning company were refused the permission to be represented by an advocate. Even if any or all the officers of the bank comprising the Committee are legally trained persons, the petitioning company does not stand at a disadvantage. It is inconceivable that the petitioning company does not have in its fleet an efficient and well versed company secretary an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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