https://www.taxtmi.com/caselaws?id=458459 A bank may classify a borrower as a wilful defaulter only on its own objective satisfaction, formed from the borrower's overall track record and material showing intentional, deliberate default. A forensic audit report may corroborate suspicion but cannot replace the bank's independent determination under the Master Circular. Here, the show cause notice was issued primarily on the basis of the forensic report without the required recorded assessment, and the transactions relied on had earlier been disclosed and treated as strategic investments rather than diversion of funds. The confirmation of wilful defaulter status was therefore quashed. en-us Thu, 29 Feb 2024 00:00:00 +0530 Mon, 28 Oct 2024 11:25:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458459 A bank may classify a borrower as a wilful defaulter only on its own objective satisfaction, formed from the borrower's overall track record and material showing intentional, deliberate default. A forensic audit report may corroborate suspicion but cannot replace the bank's independent determination under the Master Circular. Here, the show cause notice was issued primarily on the basis of the forensic report without the required recorded assessment, and the transactions relied on had earlier been disclosed and treated as strategic investments rather than diversion of funds. The confirmation of wilful defaulter status was therefore quashed. Case-Laws Companies Law Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458459