JUDGMENT :

Rajasekhar Mantha, J.

1. The writ petitioners are aggrieved by order/communication dated 20th March, 2021 issued by the Review Committee/ Second Committee, respondents declaring them Wilful Defaulters. Prior thereto on 7th June, 2019 the Wilful Defaulter Identification Committee (WDIC)/First Committee in terms of the Master Circular of the Reserve Bank of India on Wilful Defaulters dated 1st July, 2015 (vide no. RBI/2015-16/100DBR.No.CID.BC.22/20.16.003/2012-16) identified the petitioners as Wilful Defaulters on, inter alia, the grounds that:-

a) The petitioners defaulted in meeting payment/repayment obligations to the Bank, even though they had the capacity, to do so.

b) The petitioners have not utilised the finance from the lender for the purpose for which it was availed. The petitioners have diverted funds for other purposes.

c) Short term working capital funds have been utilised for long term purposes.

d) Investments were made in other companies by acquiring equity without approval of the bank.

e) The petitioners have siphoned off funds without using the same for the purpose of which funds were availed.

2. Against each of the aforesaid allegations the evidence and documents relied upon to substantiate, wilful default were the audited Balance Sheets of M/s Rohit Fero Tech Limited (Principal Debtor) for the year ending 31st March, 2016, 31st March, 2017and 31st March, 2018.

3. In reply thereto on 9th July, 2019, Advocates acting for the petitioners and the principal borrower purported to show cause. The petitioners also asked the bank to disclose all evidence before the said Wilful Defaulter Identification Committee (WDIC). The bank by communication dated 16th August, 2019 replied to the cause shown by the petitioners. The petitioners through their Advocates replied to the said reply on 9th September, 2019. By a letter dated 9th December, 2019 the WDIC offered a personal hearing to the petitioners via video conference. The petitioners were required to come to the video conferencing room at Bank’s Branch in Kolkata at Middleton Street at 1 p.m. on 30th December, 2019.

4. Prior thereto by a letter dated 26th December, 2019 the petitioners after reiterating their earlier contentions placed further facts showing cause and asked for the same to be placed before the WDIC.

5. The Bank thereafter by communication dated 3rd March, 2020 extended time and deferred the date of personal hearing to 20th March, 2020 at 11 a.m. and once again asked the petitioners to be present for virtual hearing at the Middleton Street office of the bank.

6. In reply thereto the petitioners by communication dated 18th March, 2020 asked for personal hearing to be allowed from the residence or the office of the petitioners at Kolkata. The petitioners did not avail the come to the bank on 20th March, 2020.

7. By a communication dated 16th July, 2020 the petitioners once again asked the bank for documents relating to the petitioners’ credit facilities; details of the constitution of the WDIC; all materials and documents relied upon by the WDIC and the minutes of meeting of the Committee leading to the identification of the petitioners as Wilful Defaulters. The bank was also called upon to recall the previous show cause and hold personal hearing online without they having to come to the branch of the bank. The said request was reiterated on 22nd August, 2020, 26th November, 2020 and 7th January, 2021.

8. With a view to alleviate the repeated requests of the petitioners, the bank by communication dated 3rd February, 2021 once again resubmitted and furnished documents to the petitioners. By an order dated 12th May, 2021, the petitioners were informed that the Review Committee of the bank in its meeting dated 20th March, 2021 confirmed the decision of the WDIC dated 27th November, 2020. It was intimated that the names of the petitioners and the principal borrower would be included in the CIC’s list of Wilful Defaulters. It was further informed that the bank would p