Wilful Defaulter Declaration Quashed for Violation of Natural Justice.

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....The HC quashed the orders declaring the Petitioner as a Wilful Defaulter by Respondent No. 1 Bank. The Court held that the Master Circular on Wilful Defaulters issued by RBI requires strict adherence to principles of natural justice given the grave civil and penal consequences. The Petitioner was not provided substantial opportunity of being heard or documents relied upon, violating natural justice. The HC affirmed the maintainability of the petition against the Bank under Article 19(1)(g) of the Constitution as per the Supreme Court's decision in Jah Developers case. The statutory procedural mechanism under the Master Circular must be followed strictly.....