The High Court considered the issue of willful defaulters and ...

Willful defaulters wrongly declared without notice or hearing, violating RBI rules. Orders quashed for lack of natural justice.

Case Laws Indian Laws

June 20, 2024

The High Court considered the issue of willful defaulters and the declaration of loan accounts as fraud without proper notice or hearing. The fraud declaration was found to be without opportunity of hearing, violating RBI's Master Directions on Fraud. The willful defaulter orders lacked sufficient evidence and failed to follow natural justice principles. The orders declaring petitioners as defaulters were deemed arbitrary and quashed. The court set aside the declarations for two companies and allowed the petition in part. The bank was instructed to provide all material relied upon for forming opinions, emphasizing the importance of procedural fairness in such cases.

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The High Court considered the issue of willful defaulters and ...

Willful defaulters wrongly declared without notice or hearing, violating RBI rules. Orders quashed for lack of natural justice.

Case Laws Indian Laws

June 20, 2024

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