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IN THE HIGH COURT AT CALCUTTA
KRISHNA RAO
Hemant Kanoria – Appellant
Versus
Indian Overseas Bank – Respondent
Judgment :
Krishna Rao, J.
1. The petitioners have filed the present writ application challenging the show cause notices dated 28th February, 2025. Hearing of the matter was concluded on 14th January, 2026 and this Court reserved the matter for judgment along with all connected matters. On 15th January, 2026, the respondent bank again issued communications declaring the account of the petitioners as “fraud”.
2. On receipt of the said impugned letters dated 15th January, 2026, the petitioners have filed an application being CAN No. 1 of 2026 and brought to the notice of this Court about the impugned letters dated 15th January, 2026.
3. The petitioners contended that the respondent failed to act in accordance with its statutory obligations and responsibilities in terms of the Reserve Bank of India Master Directions.
4. It is further contended that the show cause notices issued by the respondent are without any jurisdiction and is arbitrary, perverse and violation of principles of natural justice. It is submitted that the respondent bank failed to furnish either the purported Forensic Audit Report or the documents relied in the show cause notices.
5. It is submitted that the petitioners do
A bank must adhere to principles of natural justice by providing borrowers with necessary documents and an opportunity to be heard before classifying accounts as fraud.
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