Wilful defaulter declaration dispute leads to short interim protection pending review of meeting minutes.

The Delhi High Court considered whether limited interim protection was warranted against a communication and review committee decision declaring a borrower a wilful defaulter, where the reasons were said to be contained in the meeting minutes. The petitioner objected that the impugned communication did not itself disclose reasons and sought time to examine the minutes supplied during the hearing before deciding any challenge. Pending that examination, the Court granted short interim relief by restraining publication of the wilful defaulter declaration and further action on the decision for ten days, while leaving the petitioner free to pursue remedies in accordance with law.

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Issues: Whether the impugned communication and review committee decision declaring the petitioner a wilful defaulter called for interim interference pending examination of the minutes of the meeting.

Analysis: The petitioner questioned the impugned communication on the ground that it contained no reasons. The reasons were stated to be contained in the minutes of the meeting, a copy of which was supplied during the hearing. As the petitioner required time to examine the minutes and decide whether to assail the conclusion reached therein, limited interim protection was considered appropriate.

Outcome: The Court directed the bank not to publish the declaration of wilful defaulter for ten days and not to take further steps on the impugned decision for the same period, while leaving the petitioner at liberty to take recourse in accordance with law.

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