2018 (6) TMI 1587

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.... writ petition. The facts of the case reveal that the petitioner is a Company incorporated under the Companies Act, 1956 and has availed financial assistance from Bank of Baroda. The Company has not repaid the amount of loan and the Bank of Baroda has prima-facie arrived at a conclusion that the Company has committed an act of diversion and siphoning of funds as defined in Clause 2.2.1 and Clause 2.2.2 of RBI Master circular dated 01/07/2015 on willful defaulters and a show cause notice was issued to the petitioner on 01/09/2017. The petitioner instead of submitting a detailed reply to the show cause notice, issued a reply / notice dated 13/09/2017 stating that they should be permitted to represent their case through a lawyer. Their reque....

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....the Master Circular. Such Circulars of the Reserve Bank of India (RBI) have in, ICICI Bank Ltd. Vs. Official Liquidator of APS Star Industries Ltd. (2010) 10 SCC 1 and in Peerless General Finance & Investment Co. Limited Vs. Reserve Bank of India (1992) 2 SCC 343 been held to have a statutory character and force of law. The GRC thus satisfies the test aforesaid of having been constituted by the State. (HH) In our view, the GRC also satisfies the test of having been invested with the State‟s judicial power and having the trappings of a Court i.e. the authority to determine whether the Banks/FIs proposal to classify a borrower as a wilful defaulter is in accordance with the requirements of the Master Circular and if so satisfied, to d....