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J. B. PARDIWALA, K. V. VISWANATHAN
State Bank of India – Appellant
Versus
Amit Iron Private Limited – Respondent
Key Points: - (!) (!) - (!) (!) - (!) (!)
| Table of Content |
|---|
| 1. principles of natural justice must adapt to circumstances. (Para 1 , 11) |
| 2. classification of loan accounts as fraud triggered significant legal inquiries. (Para 6 , 10 , 14) |
| 3. right to a personal hearing is contested under various statutes. (Para 26 , 28 , 44) |
| 4. natural justice principles include the right to respond to accusations. (Para 60 , 62 , 98) |
| 5. the court mandates disclosure of forensic reports, upholding procedural fairness. (Para 127 , 128) |
JUDGMENT :
K.V. Viswanathan, J.
1. Six decades ago, it was aptly proclaimed that principles of natural justice cannot be cut and dried or nicely weighed and measured (Ridge vs. Baldwin, 1964 AC 40). This Court rightly described it as a flexible concept, to be adapted to circumstances. Its elasticity, however, has been tested to its limits in several cases. We are here confronted with one such. While the Reserve Bank of India (for short “RBI”) and the appellant-Banks contend that a notice, an opportunity to reply, and a reasoned order should serve the ends of justice, the borrowers implore that they are entitled to a “personal hearing” before classifying their account as a “fraud account.” The other issue that arises i
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