Back
DELHI HIGH COURT
PRATEEK JALAN
Frost International Limited – Appellant
Versus
Bank of Baroda – Respondent
| Table of Content |
|---|
| 1. bank's procedures for declaring wilful defaulters. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. natural justice requirements in the master circular. (Para 8 , 9 , 10) |
| 3. writ petition succeeds; procedures set aside. (Para 11 , 12) |
JUDGMENT
Prateek Jalan, J. (Oral)--The proceedings in the matter have been conducted through video conferencing.
1. The petitioners assail a communication dated 05.10.2019 by which the decision of the respondent-Bank of Baroda ["the Bank"] to declare the petitioners as wilful defaulters under the Master Circular on Wilful Defaulters dated 01.07.2015 ["the Master Circular"] issued by the Reserve Bank of India ["RBI"] was communicated to the petitioners. The petitioners also challenge a communication dated 11.06.2020 by which the decision of the Review Committee under the Master Circular was communicated to them.
2. The Bank issued a show cause notice dated 25.02.2019 [Annexure P-10 to the writ petition] to the petitioners, enumerating 17 grounds upon which it intended to classify the petitioners as wilful defaulters. The petitioners responded to the show cause notice by way of representations dated 12.03.2019 and 30.05.2019. The petitioners sought t
The main legal point established in the judgment is the requirement for reasoned orders and adherence to natural justice principles in the identification of wilful defaulters under the Master Circula....
The central legal point established in the judgment is the significance of following the prescribed procedure, including the issuance of a show cause notice and opportunities for representation, in t....
Clear procedural requirements for declaring a borrower as a wilful defaulter must be adhered to, ensuring natural justice principles are upheld.
The main legal point established in the judgment is that decisions of administrative bodies must be reasoned and must provide a fair opportunity for the affected parties to be heard, in accordance wi....
Debt Recovery and Monetary Laws - Bank - Loan - Notice - Order of Identification Committee and Review Committee - Challenged - Prior to Identification Committee taking a fresh decision, Bank will add....
Procedural fairness and adherence to natural justice are crucial when classifying individuals as wilful defaulters under banking regulations.
The court granted the appellants liberty to file a detailed representation before the Review Committee under the RBI Master Circular and directed that the Review Committee's order shall not be given ....
Point of Law : Petitioners have been declared as willful defaulters is perverse and contrary to Master Circular of Reserve Bank of India apart from conflicting with peremptory directions of Supreme C....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
