https://www.taxtmi.com/caselaws?id=377950 Wilful default under the RBI Master Circular may be assessed contextually and is not limited to a narrow lender-borrower situation where funds are physically credited into the borrower's account. The Court held that liability arising from the bank's payment to foreign suppliers under a letter of credit created an enforceable credit obligation, and the petitioners' failure to repay, along with withdrawal of equity funds without consent, justified classification as wilful defaulters. It further held that the circular's personal hearing does not include a right to be represented by an advocate or chartered accountant, and that review by the internal committee is a safeguard, not an appellate hearing requiring fresh reasons. The writ petition was dismissed. en-us Mon, 11 Mar 2019 00:00:00 +0530 Fri, 05 Apr 2019 09:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377950 Wilful default under the RBI Master Circular may be assessed contextually and is not limited to a narrow lender-borrower situation where funds are physically credited into the borrower's account. The Court held that liability arising from the bank's payment to foreign suppliers under a letter of credit created an enforceable credit obligation, and the petitioners' failure to repay, along with withdrawal of equity funds without consent, justified classification as wilful defaulters. It further held that the circular's personal hearing does not include a right to be represented by an advocate or chartered accountant, and that review by the internal committee is a safeguard, not an appellate hearing requiring fresh reasons. The writ petition was dismissed. Case-Laws Companies Law Mon, 11 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377950