https://www.taxtmi.com/caselaws?id=463474 A borrower may be declared a wilful defaulter only where diversion or siphoning of borrowed funds is established on objective consideration of all relevant material and a reasoned assessment of the borrower's reply. The Delhi High Court held that the declaration could not stand because the alleged investments in subsidiaries were shown to have been made from internal accruals, the lending banks were already aware of them through audited statements and restructuring material, and the source of funds was not proved to be borrowed money. The court also noted that the proceedings were initiated after an inordinate delay and that the relevant defence and material were not properly considered. en-us Thu, 29 Feb 2024 00:00:00 +0530 Wed, 03 Sep 2025 19:06:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463474 A borrower may be declared a wilful defaulter only where diversion or siphoning of borrowed funds is established on objective consideration of all relevant material and a reasoned assessment of the borrower's reply. The Delhi High Court held that the declaration could not stand because the alleged investments in subsidiaries were shown to have been made from internal accruals, the lending banks were already aware of them through audited statements and restructuring material, and the source of funds was not proved to be borrowed money. The court also noted that the proceedings were initiated after an inordinate delay and that the relevant defence and material were not properly considered. Case-Laws Companies Law Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463474