2013 (8) TMI 1163

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....rovides for an initial committee of high functionaries of the concerned bank or financial institution to be entrusted with the preliminary decision to classify a person as a willful defaulter. The committee, as per the circular, should be headed by an executive director and consist of two general managers or deputy general managers as may be decided by the board of directors of the concerned bank or financial institution. 2. Clause (i) of paragraph 3 of the Master Circular requires identification of cases of willful default to be entrusted to such committee of higher functionaries headed by an executive director "with a view to imparting more objectivity...." Clause (ii) of paragraph 3 of the Master Circular mandates that a decis....

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....representation and the borrower should be suitably advised. 4. The word "thereafter" and the expression "proposal to classify" in clause (iii) of paragraph 3 of the Master Circular read with clause (v) thereof leave no manner of doubt that the exercise under clauses (i) and (ii) is only a proposal, whereupon the would-be willful defaulter is to be forwarded the preliminary decision "along with the reasons therefore" for the concerned borrower to be afforded reasonable time to make a representation against the decision to the Grievance Redressal Committee "headed by the Chairman and Managing Director and consisting of two other senior officials." It is plain to see from the scheme of paragraph 3 of th....