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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. Saravanan, J
M/s. Kirubha Exports, Represented by its Proprietrix Mrs.V.T. Kirubha – Appellant
Versus
The Reserve Bank of India – Respondent
| Table of Content |
|---|
| 1. challenge of account classification as fraudulent based on external business factors. (Para 2) |
| 2. court considerations of relevant supreme court decisions on msme obligations. (Para 3 , 5) |
| 3. observations on procedural adherence mandated by rbi for borrower classifications. (Para 4 , 6 , 8 , 9) |
| 4. court ruling affirming the bank's procedures in declaring the account as fraudulent. (Para 7) |
| 5. outcome of petition dismissal and liberty for debt resolution. (Para 10) |
ORDER
In this writ petition, the petitioner challenged the impugned communication of the fourth respondent dated 05.04.2025 wherein the account of the petitioner had been declared as fraudulent. Relevant portion of the said impugned communication of the fourth respondent is herein.
“Under the circumstances and in view of the above facts, it is deemed that the borrower concern has not satisfactory cause to submit against the Bank's grounds for classifying their account as fraudulent. Accordingly, by reiterating the RBI Master Direction and Hon'ble High Court of Madras order dated 19.12.2023, no proper reply submitted for the findings in the Forensic audit report even after providing the personal hearing, the Ba
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