https://www.taxtmi.com/highlights?id=88906 HC reviewed a petition challenging the classification of a corporate entity as a 'fraud' based on non-payment of institutional loans. The court found the bank's grounds for classification unsustainable, noting the company's balance sheets demonstrated substantial cash accruals and transactions. The court held that grounds previously rejected for 'wilful defaulter' status cannot form the basis for 'fraud' classification without additional independent material. The court emphasized that declaring an account as 'fraud' requires a higher degree of criminality. Consequently, the HC quashed the bank's fraud classification, ruling the action arbitrary, unfair, and legally untenable, and corrected minor typographical errors in the original judgment. en-us Fri, 30 May 2025 08:55:37 +0530 Fri, 30 May 2025 08:55:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=88906 HC reviewed a petition challenging the classification of a corporate entity as a 'fraud' based on non-payment of institutional loans. The court found the bank's grounds for classification unsustainable, noting the company's balance sheets demonstrated substantial cash accruals and transactions. The court held that grounds previously rejected for 'wilful defaulter' status cannot form the basis for 'fraud' classification without additional independent material. The court emphasized that declaring an account as 'fraud' requires a higher degree of criminality. Consequently, the HC quashed the bank's fraud classification, ruling the action arbitrary, unfair, and legally untenable, and corrected minor typographical errors in the original judgment. Highlights Companies Law Fri, 30 May 2025 08:55:37 +0530 https://www.taxtmi.com/highlights?id=88906