The Bombay High Court observed that the banks and financial institutions while declaring occurrence of wilful default must share reasoned orders. The Court observed thus in a writ petition seeking various declaratory reliefs by which adherence to principles of natural justice including provision of inspection of relevant material was sought to read into the due process stipulated by the Reserve Bank of India (RBI) in connection with declaration of bodies corporate, their promoters, and directors as “wilful defaulter”. A Division Bench comprising Justice B.P. Colabawalla and Justice Somasekhar Sundaresan held, “Banks and financial institutions that seek to invoke the Master Circular…
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Banks And Financial Institutions Declaring Occurrence Of Wilful Default Must Share Reasoned Orders: Bombay High Court
