https://www.taxtmi.com/caselaws?id=469053 Classification of borrowers' accounts as fraud under an RBI framework was treated as an administrative action carrying serious civil consequences, so prior notice and hearing were required under audi alteram partem unless validly excluded. The court noted that absence of an express hearing clause does not displace natural justice where valuable rights are affected, and that a fraud declaration made without prior opportunity of hearing is unsustainable. Because the later FIRs and coercive measures were founded on that defective classification, they also fell with the illegal foundation. The lending institutions were left free to proceed afresh in accordance with natural justice. en-us Mon, 27 May 2024 00:00:00 +0530 Mon, 01 Jun 2026 17:05:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469053 Classification of borrowers' accounts as fraud under an RBI framework was treated as an administrative action carrying serious civil consequences, so prior notice and hearing were required under audi alteram partem unless validly excluded. The court noted that absence of an express hearing clause does not displace natural justice where valuable rights are affected, and that a fraud declaration made without prior opportunity of hearing is unsustainable. Because the later FIRs and coercive measures were founded on that defective classification, they also fell with the illegal foundation. The lending institutions were left free to proceed afresh in accordance with natural justice. Case-Laws Indian Laws Mon, 27 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469053