https://www.taxtmi.com/caselaws?id=302997 A bank cannot proceed to classify a borrower as a willful defaulter on a bare preliminary view without recording reasons, supporting material, and compliance with the RBI Master Circular procedure. The prescribed scheme requires a tentative decision by the committee headed by the executive director, communication of the proposal and reasons to the borrower, an opportunity to make a representation, and a final decision by the grievance redressal committee headed by the chairman and managing director. These safeguards are intended to ensure fairness and natural justice before a borrower is branded a willful defaulter. Notices issued without following this process were unsustainable and were set aside, leaving the bank free to restart proceedings in accordance with the Circular. en-us Tue, 06 Aug 2013 00:00:00 +0530 Tue, 28 Jun 2022 18:15:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302997 A bank cannot proceed to classify a borrower as a willful defaulter on a bare preliminary view without recording reasons, supporting material, and compliance with the RBI Master Circular procedure. The prescribed scheme requires a tentative decision by the committee headed by the executive director, communication of the proposal and reasons to the borrower, an opportunity to make a representation, and a final decision by the grievance redressal committee headed by the chairman and managing director. These safeguards are intended to ensure fairness and natural justice before a borrower is branded a willful defaulter. Notices issued without following this process were unsustainable and were set aside, leaving the bank free to restart proceedings in accordance with the Circular. Case-Laws Indian Laws Tue, 06 Aug 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302997