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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Vidyasagar Parchuri – Appellant
Versus
Punjab National Bank, Rep. by General Manager – Respondent
ORDER :
NAGESH BHEEMAPAKA, J.
Petitioners state that show cause notice dated 22.01.2015 as well as subsequent notice dated 20.02.2016, are fundamentally-defective and illegal as they were not issued by the Identification Committee as mandated by the RBI Master Circular on Wilful Defaulters. According to them, these notices were issued by an officer who was not a member of the Identification Committee, and neither notice bears the signatures or approval of the Committee members. They further contend that the notices do not disclose any reasons, material particulars, or independent findings of the Committee. They assert that no deliberations of the Committee preceded the issuance of these notices, thereby demonstrating total non-application of mind and rendering the entire exercise contrary to the mandatory procedural framework prescribed by the RBI.
1.1. Petitioners state that they are members of the suspended management of Respondent No. 2 company, which has been admitted into Corporate Insolvency Resolution Process (CIRP) in CP(IB) No. 645/HDB/2018 by order dated 05.06.2023 of the NCLT, Hyderabad Bench. They further point out that due to deficiencies in the public announcement and ot
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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....
Clear procedural requirements for declaring a borrower as a wilful defaulter must be adhered to, ensuring natural justice principles are upheld.
A declaration of wilful defaulters against non-executive directors requires specific allegations of involvement in the company's financial decisions; otherwise, it violates principles of natural just....
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