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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Anand Venkatesh, J
Dharani Sugars and Chemicals Limited – Appellant
Versus
Central Bank of India – Respondent
| Table of Content |
|---|
| 1. writ petition challenges classification as wilful defaulters. (Para 1 , 2) |
| 2. financial challenges led to npa status. (Para 3 , 4) |
| 3. court evaluates adherence to rbi guidelines. (Para 5 , 6) |
| 4. classification lacks procedural compliance. (Para 7) |
| 5. writ petition is allowed. (Para 8) |
ORDER
This writ petition has been filed challenging the impugned proceedings of the 1st respondent dated 17.06.2021, declaring the petitioners as 'Wilful Defaulters'.
2.Heard Mr.J.Manivannan, learned counsel appearing on behalf of the petitioners and Mr.M.L.Ganesh, learned counsel appearing on behalf of the respondent.
3.The case of the petitioners is the 1st petitioner obtained credit facilities with Consortium of Banks including the respondent Bank. Due to financial challenges, the loan account of the 1st petitioner was classified as 'NPA'. Thereafter, the Consortium Lenders Meeting was held on 14.02.2020. A Forensic Auditor was appointed and the audit was completed and report was shared with the lenders. In the meantime, Corporate Insolvency Resolution Process was initiated against the 1st petitioner Company. Subsequently, the Consortium Banks transferred the loan amount to the National
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