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TMI Blog2013 (8) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... h functionaries of the concerned bank or financial institution to be entrusted with the preliminary decision to classify a person as a willful defaulter. The committee, as per the circular, should be headed by an executive director and consist of two general managers or deputy general managers as may be decided by the board of directors of the concerned bank or financial institution. 2. Clause (i) of paragraph 3 of the Master Circular requires identification of cases of willful default to be entrusted to such committee of higher functionaries headed by an executive director with a view to imparting more objectivity.... Clause (ii) of paragraph 3 of the Master Circular mandates that a decision taken for classifying a borrower as a willf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereafter and the expression proposal to classify in clause (iii) of paragraph 3 of the Master Circular read with clause (v) thereof leave no manner of doubt that the exercise under clauses (i) and (ii) is only a proposal, whereupon the would-be willful defaulter is to be forwarded the preliminary decision along with the reasons therefore for the concerned borrower to be afforded reasonable time to make a representation against the decision to the Grievance Redressal Committee headed by the Chairman and Managing Director and consisting of two other senior officials. It is plain to see from the scheme of paragraph 3 of the Master Circular, which is in keeping with the seriousness of the consequence of a borrower being branded as a wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebt due from them. 6. Since the preliminary opinion impugned in the present proceedings is devoid of any reason or any evidence as to why the petitioners have been proposed to be classified as willful defaulters, the notices impugned dated March 5, 2013 and April 13, 2013 are set aside and the preliminary committee of the respondent bank is left free to proceed afresh in accordance with paragraph 3 of the Master Circular. 7. Nothing in this order should be construed to be a certificate to any of the petitioners and the bank is left free to collate the material to brand the petitioners as willful defaulters and take steps against the petitioners in accordance with the Master Circular. 8. W.P. No. 749 of 2013 is allowed as above with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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