Back
SUNITA AGARWAL, ANIRUDDHA P. MAYEE
Jagdish Prasad Saboo – Appellant
Versus
IDBI Bank Limited – Respondent
| Table of Content |
|---|
| 1. appeal against order declaring appellant a willful defaulter. (Para 1) |
| 2. factual background on default and forensic audit procedures. (Para 2 , 3 , 4 , 5) |
| 3. arguments on procedural flaws regarding the forensic audit. (Para 6 , 8) |
| 4. legal precedent on moratorium affecting proceedings under rbi directives. (Para 9 , 10) |
| 5. analysis of i&b code sections relevant to moratorium and debt. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 6. explanation on the implications of willful default under rbi master circular. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27) |
| 7. discussion on principles of natural justice in decision-making. (Para 28 , 29 , 30) |
| 8. judicial review limitations in matters of financial prudence. (Para 31) |
| 9. conclusion that appeal is dismissed with no errors in the lower court's decision. (Para 32) |
JUDGMENT :
(Sunita Agarwal, J.)
1. The present appeal is directed against the order of the learned Single Judge dated 27.03.2023 whereby the writ petition challenging the order dated 12.05.2022 passed by the Willful Defaulter Identification Committee (WDIC) and the order dated 30.08.2022 passed by the Willful Defaulter Review Committee (WDRC) as also the impugned com
The court clarified that the moratorium under the Insolvency Code does not prevent proceedings for declaring a borrower as a willful defaulter under RBI guidelines, emphasizing adherence to principle....
The main legal point established in the judgment is the requirement for quasi-judicial authorities to act fairly, provide an opportunity of personal hearing, and pass reasoned orders in accordance wi....
The court established that the failure to provide a forensic audit report and a personal hearing before declaring wilful defaulters violates natural justice principles.
The court clarified the applicability of RBI guidelines in the context of ongoing CIRP and upheld the validity of the impugned Show-Cause Notice, emphasizing compliance with the RBI guidelines.
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....
The declaration of a wilful defaulter must adhere to principles of natural justice, requiring access to relevant documents for a meaningful defense.
Proceedings for declaring wilful defaulters under RBI guidelines can proceed even amidst ongoing insolvency resolution process, provided proper procedures are followed and no prejudice is shown.
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
