Back
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SHEEL NAGU, CJ, SANJIV BERRY
Narinder Chugh – Appellant
Versus
State Bank of India – Respondent
JUDGMENT :
SANJIV BERRY, J.
1. The instant Writ Petition has been preferred under Articles 226/227of the Constitution of India seeking writ in the nature of Certiorari, for quashing of minutes of meeting of Fraud Identification Committee dated 21.06.2024 (Annexure P-13) and its communication dated 12.07.2024 (Annexure P-12) issued by the respondent, whereby the petitioner was declared fraud, besides seeking quashing of all consequential proceedings initiated on account of such declaration.
2. Briefly stating the facts of the case are that the petitioner had rich experience on issues pertaining to international trade for over last two decades. M/s Rama Krishna Knitters Private Limited was financed by consortium of four Banks and was being managed by Naresh Kumar Gupta. After his death on 13.11.2014 the said company went into financial trouble, Shalu Gupta wife of Naresh Kumar Gupta was other Director of the Company. On 27.11.2014, the then Directors of said Company introduced the credentials of the petitioner in the consortium meeting requesting him to provide requisite financial support for the revival of the Company. The Members of the Banks were satisfied, and the petitioner was cal
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 classification of an account as fraud involves the right to representation but does not mandate a personal hearing under the Master Directions on Fraud. This aligns with the principles of natural....
The classification of a borrower's account as fraud under RBI Directions necessitates adherence to the principles of natural justice, including the right to personal hearing, while representation by ....
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.
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
