J U D G M E N T

MANMOHAN, J: (ORAL)

1. Present writ petition has been filed challenging legalityand validityof the circular dated 1st July, 2016 bearing number DBS.CO.CFMC.BC. No.1/23.04.001/2016-17 (Master Direction on Fraud) issued by the Respondent No.1-Reserve Bank of India to the extent it violates Article 14 of the Constitution of India as well as the decision/order of the Respondent- Banks declaring and categorising and reporting the accounts of the company M/s Ruchi Soya Industries Ltd. as ‘fraud’.

2. The Supreme Court in State Bank of India & Ors. Vs. Rajesh Agarwal & Ors., 2023 SCC OnLine SC 342 has held that the rule of audi alteram partem ought to be read in Clauses 8.9.4 and 8.9.5 of the Master Direction on Fraud. The relevant portion of the said judgment is reproduced hereinbelow:-

“79. In light of the legal position noted above, we hold that the rule of audi alteram partem ought to be read in Clauses 8.9.4 and 8.9.5 of the Master Directions onFraud. Consistentwith the principles of natural justice, the lender banks shouldprovide an opportunity to aborrower by furnishinga copy of the audit reports and allow the borrower a reasonable opportunity to submit a representation