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MAHESH CHANDRA TRIPATHI, PRASHANT KUMAR
Simbhaoli Sugars Limited – Appellant
Versus
State Bank Of India – Respondent
| Table of Content |
|---|
| 1. collusion and loans disbursed without due diligence. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. petitioner seeks to quash rejection of settlement offer. (Para 9 , 10 , 11) |
| 3. court observations on lack of seriousness from petitioner. (Para 12 , 13 , 14 , 15 , 16 , 17) |
| 4. legal consequences of ignoring supreme court precedent. (Para 18 , 19 , 20 , 21 , 22) |
| 5. banks' failures in following rbi guidelines. (Para 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30) |
| 6. failures of banks in recovering debts. (Para 31 , 32 , 33 , 34 , 35) |
| 7. fraudulent actions by borrower and complicity of banks. (Para 36 , 37 , 38 , 39 , 40) |
| 8. mandatory reporting guidelines for banks. (Para 41 , 42 , 43 , 44 , 45) |
| 9. consequences for failing to report fraud. (Para 46 , 47 , 48 , 49 , 50) |
| 10. court orders to sanction thorough investigations. (Para 51 , 52 , 53 , 54 , 55) |
| 11. court's distress over public funds being siphoned off. (Para 56 , 57 , 58 , 59 , 60) |
| 12. conclusions drawn in the public interest. (Para 61 , 62 , 63 , 64 , 65) |
| 13. closure of petition with directives. (Para 66 , 67 , 68 , 69) |
JUDGMENT :
1. Heard Shri Rohan Gupta, learned counsel for the petitioner, Shri Anurag Khanna, learned Senior Advocate ass
Failure to adhere to RBI guidelines in loan disbursement constitutes fraud, leading to contempt for willful defaults and necessitating CBI investigation.
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.
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....
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