https://www.taxtmi.com/caselaws?id=185267 RBI directions issued under Section 35A of the Banking Regulation Act, 1949 have statutory force and bind banks and financial institutions, so the Master Circular on wilful defaulters was enforceable. The prescribed numerical composition of the Identification Committee and Grievance Redressal Committee was mandatory because it formed part of the two-tier regulatory mechanism for uniform and expeditious identification of wilful defaulters. A lead bank's letter did not bar an individual consortium bank from proceeding independently under the circular. The wilful defaulter declarations were nevertheless set aside because the committees were not constituted in accordance with the mandatory prescription, though the bank remained free to proceed afresh in accordance with law. en-us Wed, 24 Dec 2014 00:00:00 +0530 Fri, 05 Aug 2016 16:36:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185267 RBI directions issued under Section 35A of the Banking Regulation Act, 1949 have statutory force and bind banks and financial institutions, so the Master Circular on wilful defaulters was enforceable. The prescribed numerical composition of the Identification Committee and Grievance Redressal Committee was mandatory because it formed part of the two-tier regulatory mechanism for uniform and expeditious identification of wilful defaulters. A lead bank's letter did not bar an individual consortium bank from proceeding independently under the circular. The wilful defaulter declarations were nevertheless set aside because the committees were not constituted in accordance with the mandatory prescription, though the bank remained free to proceed afresh in accordance with law. Case-Laws Indian Laws Wed, 24 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185267