Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
VIKAS MAHAJAN
RCC Infraventures Ltd – Appellant
Versus
Reserve Bank Of India – Respondent
| Table of Content |
|---|
| 1. challenge to fraud classification without due process. (Para 1 , 2) |
| 2. defendants' responses regarding fraud classification. (Para 4 , 5 , 6) |
| 3. petitioners denied access to forensic audit report. (Para 8 , 9) |
| 4. supreme court's ruling on natural justice principles. (Para 10 , 11) |
| 5. court quashes fraud classification and allows fresh proceedings. (Para 14 , 15 , 16 , 17) |
JUDGMENT :
VIKAS MAHAJAN, J.
1. The present petition has been filed with the following prayer:
“i. Quash and set aside the Impugned Circular bearing number DBS. CO.CFMC.BC.No.1/23.04.001/2016-17 dated 01.07.2016 issued by the Respondent No. 1 to the extent it violates Article 14 of the Constitution of India in as much as it is vague and does not follow the basic principles of natural justice;
ii. Issue a Writ of Mandamus or any other appropriate Writ for quashing/setting aside the impugned action of Respondent No. 2 Bank, Respondent No. 4 Bank and Respondent No. 5 Bank, if any, in declaring the account of the Petitioner No. 1 Company as well as the Petitioners No. 2 - 4 as a Fraud Account;
iii. Issue a Writ of Mandamus or any other appropriate Writ for quashing/setting aside the impugned action of Respon
Natural justice principles demand notice and opportunity for personal hearing before classifying bank accounts as fraud, ensuring that parties have the chance to defend their rights against severe pe....
The court established that the principles of natural justice require that a borrower be given notice and an opportunity to respond before their account is classified as fraud.
The principle of Audi Alteram Partem must be applied before classifying an account as fraud under RBI guidelines, ensuring borrowers are given a fair opportunity to be heard.
The Supreme Court ruled that classification of borrower accounts as 'fraud' requires adherence to natural justice, including notice, opportunity to respond, and access to forensic reports but does no....
The classification of an account as fraud must adhere to principles of natural justice, including providing a reasoned order and opportunity to be heard.
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.
The principle of audi alteram partem, requiring lender banks to provide an opportunity for borrowers to submit a representation before classifying their accounts as fraud, in line with the principles....
Adherence to the principles of natural justice requires personal hearings for borrowers before classifying bank accounts as fraudulent.
The principle of audi alteram partem, requiring the lender banks to provide an opportunity of hearing to the borrowers before classifying their accounts as fraud, was central to the court's decision.
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
