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Petition Dismissed: Court Upholds Wilful Defaulter Status Despite OTS and CIRP; Directors Held Liable for Fund Diversion.
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....Declaration of Wilful Defaulter of the petitioner - Liability of Directors - The High Court dismissed the petitioner's arguments regarding the mechanical repetition of decisions by the Review Committee, finding that the RC provided independent findings. - Regarding the defense against wilful default due to the CIRP, the Court held that an OTS does not absolve wilful default, especially if part of the loan is written off. - The Court noted evidence from the borrower-Company's balance sheets suggesting diversion of funds and disposal of assets, supporting the bank's allegations of wilful default. - Directors were held responsible for wilful default, irrespective of ongoing CIRP proceedings or OTS agreements. - The High Court dismissed the writ petition challenging the declaration of wilful defaulter status against the petitioner.....