Wilful defaulter notice must be issued by the designated committee; delegated action without jurisdiction was quashed.

A show-cause notice under the Master Circular on wilful defaulters must be issued by the designated Committee after it examines the evidence and forms the requisite opinion; that function cannot be delegated to a Regional Manager or other officer. The Circular prescribed a mandatory sequence in which the Committee alone could determine whether wilful default was made out, issue notice, consider the reply, and pass a reasoned order. A bank policy inconsistent with that mechanism could not override the Circular. On that basis, the notice was held without jurisdiction and quashed, while the bank was left free to proceed only in accordance with the Master Circular and the law.

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Issues: Whether a Regional Manager could issue a show-cause notice under the Master Circular on Wilful Defaulters when the Circular required the designated Committee to examine the evidence, form an opinion, issue notice, and decide the matter.

Analysis: The Master Circular prescribed a specific mechanism for identification of wilful defaulters through a Committee of designated officers. The Committee was required to examine the evidence, and only if it concluded that wilful default had occurred could it issue the show-cause notice and thereafter consider the reply and pass a reasoned order. Since the function of forming the opinion and issuing notice was vested in the Committee, it could not be delegated to another officer. A bank policy inconsistent with the Circular could not override the Circular.

Conclusion: The impugned notice was without jurisdiction and was quashed. The Bank was left free to proceed in accordance with the Master Circular and the law.

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