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TMI Blog2019 (8) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... ogous hearing as they involve similar issues. Both the writ petitioners have challenged a decision of the Review Committee established under the provisions of the Master Circular on Wilful Defaulters issued by the Reserve Bank of India. The Company enjoying the credit facilities from UCO Bank has filed W.P. No. 381 of 2018. For the sake of convenience it is referred to as the first writ petition. The guarantors of such credit facilities have filed W.P. No. 401 of 2018. For the sake of convenience it is referred to as the second writ petition. Learned Senior Advocate appearing in support of the first writ petition has submitted that, the Company enjoyed credit facilities from UCO Bank. The Company faced proceedings under the Insolvency and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Review Committee is not apparent from the Order Sheet of the Review Committee. Therefore, according to him, the Order of the Review Committee should be quashed. Learned Advocate appearing for UCO Bank has questioned the locus standi of the person verifying the writ petition. He has submitted that, the writ petition is affirmed by the authorised signatory of the resolution professional of the Company. Since there is a liquidator appointed over the affairs of the Company and since the liquidator is not prosecuting the petition, the writ petition should be held as not maintainable. Referring to M/s. Jah Developers Pvt. Ltd. & Ors. (supra), learned Advocate appearing for UCO Bank has submitted that, the Review Committee did not have the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttee. He has relied upon the authorities cited on behalf of the first writ petitioner in support of his contentions. Learned Advocate appearing for the Bank has reiterated his contentions with regard to the applicability of the ratio of M/s. Jah Developers Pvt. Ltd. & Ors. (supra). He has also contended that, the order of the Identification Committee is not under challenge although, the petitioners are aware at least from the recordings of the Order of the Review Committee that there is a decision of the Identification Committee. The Order of the Identification Committee not being under challenge, the same should not be looked into by the Court. As noted above two writ petitions have been taken up for hearing. The first writ petition is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defaulter. The borrower may make his submissions upon such notice being served. The Identification Committee was left with the discretion to decide whether the borrower should be given a personal hearing. The Identification Committee is not barred from finding that the borrower should be declared a wilful defaulter without hearing him further. The Identification Committee's order becomes final once a Review Committee confirms the same. M/s. Jah Developers Pvt. Ltd. & Ors. (supra) cannot be construed to mean that, decisions of Banks under the Master Circular on Wilful Defaulters taken prior to the date of the judgment of M/s. Jah Developers Pvt. Ltd. & Ors. (supra) cannot be questioned on the ratio laid down therein. Courts of Law decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n neither of the two writ petitions before the Court, the petitioners therein have challenged the decision of the Identification Committee or the steps and procedures taken upto the decision of the Review Committee. The Master Circular on Wilful Defaulters dated July 1, 2015 contemplates two tier decision making process for the purpose of identification of a wilful defaulter. The Master Circular contemplates establishment of an Identification Committee consisting of the specified number of personnel with the requisite qualifications and the Constitution of a Review Committee, again of the requisite number and qualification. Once such committees are established, the Master Circular requires that a bank having material to proceed against an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s quashed. There is substance in the condition of the Bank that, the petitioners did not challenge the order of the Identification Committee in neither of the two writ petitions. Efforts have been made to rely upon the grounds made in the writ petition in support of the contention that, the orders of the Identification Committee are under challenge. However, at least in the second writ petition, the writ petitioners were aware of the procedures undertaken by the Bank under the provisions of the Wilful Defaulters on Master Circular. They have not challenged the procedure deployed or the decision taken by the Identification Committee in their writ petition. There is no prayer for quashing of such process or the orders of the Identification Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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