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G. S. PATEL, NEELA GOKHALE
Milind Patel – Appellant
Versus
Idbi Bank Ltd – Respondent
JUDGMENT/ORDER
1. The Petition is directed against the 1st Respondent, the IDBI Bank Ltd.. We note at the forefront that Mr Bharucha for IDBI Bank raises a preliminary objection as to the maintainability of the Petition. In view of the order that we propose to pass, we need not address that, and it is enough to leave contentions open. We say this because Mr Cama for the Petitioner claims there is a complete answer to the question of maintainability.
2. The challenge in the Petition is to the declaration by IDBI Bank's Wilful Defaulter Identification Committee ("WDIC") of the Petitioner as a Wilful Defaulter. This declaration was reaffirmed or confirmed by IDBI Bank's Review Committee ("RC"). Both the WDIC and the RC acted, or so they say, in consonance with the applicable master circular, circular or guidelines issued by the 2nd Respondent, the Reserve Bank of India ("RBI").
3. The present dispute is not about the guidelines or their applicability. It is about the procedure that is said to have been followed, or more accurately, not followed. For Mr Cama's complaint is that while the show-cause notice issued by the WDIC and the entire hearing proceeded on the basis of a draft forensic
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Clear procedural requirements for declaring a borrower as a wilful defaulter must be adhered to, ensuring natural justice principles are upheld.
Procedural fairness and adherence to natural justice are crucial when classifying individuals as wilful defaulters under banking regulations.
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