Back
MAHESH CHANDRA TRIPATHI, PRASHANT KUMAR
Simbhaoli Sugars Limited – Appellant
Versus
State Bank of India – Respondent
| Table of Content |
|---|
| 1. banks' negligent approval of loans (Para 2 , 3 , 4 , 5) |
| 2. petitioner's history of defaulting loans (Para 6 , 7 , 8) |
| 3. continuing issues from delinquent loans, highlighting deceitful conduct. (Para 9) |
| 4. impact on farmers due to non-payment (Para 12 , 13 , 41) |
| 5. regulatory failures in loan sanctioning and consent of banks. (Para 14 , 16 , 20 , 22 , 24) |
| 6. judicial duty to prevent fraud (Para 17 , 18 , 63 , 64) |
| 7. fraud and collusion by banks (Para 39 , 40 , 61) |
| 8. banks and borrowers' collusion leading to public loss. (Para 45 , 53) |
JUDGMENT
Mahesh Chandra Tripathi, J.
Heard Shri Rohan Gupta, learned counsel for the petitioner, Shri Anurag Khanna, learned Senior Advocate assisted by Shri Sandeep Arora, learned counsel for the State Bank of India, Shri Ashok Shankar Bhatnagar, learned counsel for Punjab National Bank and Oriental Bank of Commerce, Shri R.V. Pandey, learned counsel for the Bank of India, Shri Yashwant Singh, learned counsel for the UCO Bank, Sri Manish Trivedi, learned counsel for the ICICI Bank, Sri Abhinav Mehrotra, learned counsel for Bank of Baroda and Shri Nishant Mehrotra, learned counsel appearing for one of the Directors and Shri Ravindra Singh, le
The judgment establishes that banks are liable for negligence in loan sanctioning, failing to comply with RBI guidelines, and engaging in connivance with borrowers, thereby enabling fraud.
Failure to adhere to RBI guidelines in loan disbursement constitutes fraud, leading to contempt for willful defaults and necessitating CBI investigation.
Criminal conspiracy in terms of Section 120-B of the Code is an independent offence. It is punishable separately.
Banks classified as private corporations are not subject to writ jurisdiction under Article 12 of the Constitution; compliance with RBI directives is necessary for classifying borrowers as 'willful d....
The main legal point established in the judgment is that the actions of the borrower-Company, including non-repayment, diversion of funds, and disposal of assets, constituted wilful default under the....
The declaration of a wilful defaulter must adhere to principles of natural justice, requiring access to relevant documents for a meaningful defense.
Point of Law : Respondent- Bank has not complied with the principles of natural justice cannot be looked into at this stage more particularly, when the respondent-bank after considering the three aud....
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
