O R D E R

% 08.02.2024 CM APPL. 7641/2024 (For Exemption)

1. Exemption allowed, subject to just exceptions.

2. Application is disposed of.

W.P.(C) 1826/2024 & CM APPL. 7640/2024

3. The present petition has been filed with prayer for setting aside the declaration of the petitioner’s account and of its directors, as red flag account and/or fraud by the respondent bank and all proceedings or actions initiated or taken consequent to such declaration. There is further prayer for direction to the respondent no. 1 to ensure that respondent no. 2 does not take any fresh/further action under the Master Directions on Fraud Classification and Reporting by Commercial Banks and Select Financial Institutions dated 01st July, 2016 (“Master Directions on Fraud”), issued by the Reserve Bank of India, without providing an opportunity of being heard to the petitioner and its directors.

4. Learned Senior Counsel appearing for the petitioner submits that the respondent-bank, without following the Principles of Natural Justice and providing any opportunity of hearing to the petitioner, has declared the account of the petitioner as ‘fraud’ under the Master Directions on Fraud.

5. It is further submitted that t