Reasoned review order required in wilful-defaulter cases; bare concurrence with prior finding cannot stand.

In wilful-defaulter proceedings under the two-stage circular-based mechanism, the Review Committee must independently consider the borrower's representation and give a reasoned order. A bare concurrence with the Identification Committee, without showing application of mind, is unsustainable. The later judicial declaration of the governing procedure applies as a statement of the existing law, so prior decisions are not immune from challenge on that basis. However, where the writ challenge is confined to the Review Committee's decision and the Identification Committee's order is not specifically assailed, only the review decision is set aside. The impugned review order was quashed and the matter was directed to restart from the Identification Committee stage.

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Issues: Whether the Review Committee's order declaring the petitioners as wilful defaulters could be sustained when it was not reasoned and the petitioners had not challenged the Identification Committee's order.

Analysis: The Master Circular on wilful defaulters contemplates a two-stage process, beginning with the Identification Committee and followed by review. The Review Committee is required to consider the borrower's representation and pass a reasoned order. A subsequent judicial declaration of the governing procedure applies to earlier decisions as a declaration of the existing law, and prior decisions are not immune from challenge on that basis. At the same time, the challenge in these writ petitions was confined to the Review Committee's decision, and the Identification Committee's order was not specifically assailed. The Review Committee's order merely concurred with the earlier finding without reasons and did not show due application of mind to the representation placed before it.

Conclusion: The Review Committee's order was unsustainable and was quashed. The proceedings were directed to restart from the stage of the Identification Committee.

Final Conclusion: The writ petitions succeeded to the extent that the impugned review decision was set aside, while the earlier stage of the process was left undisturbed.

Ratio Decidendi: In a wilful-defaulter proceeding governed by a two-tier mechanism, the Review Committee must pass a reasoned order on the borrower's representation, and a bare concurrence without reasons cannot stand.

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