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2021 (12) TMI 1489 - HC - Indian LawsViolation of principles of natural justice - impugned orders contain no reasons in support of their conclusion (non-speaking order) - Declaration of petitioners as Wilful Defaulter - Company was classified as a Non-Performing Asset (NPA) - petitioners filed their response to the show-cause notice but did not object to the issue of show-cause notice by the DGM - HELD THAT:- The impugned orders in the present case have recorded conclusions without indicating the reasons in support of the same - The reasons must reflect some application of mind to the submissions made in the response to the show-cause notice failing which an impression is legitimately created that there is no consideration of such submissions. As noted, even para no. 3(b) of the Master Circular provides for consideration of such submissions before making the order declaring a person or an entity as a wilful defaulter and the record of reasons in support of the conclusion - In the precise context of the Master Circular dated 01.07.2015, the Division Bench of this Court in M/S. KANCHAN MOTORS AND OTHERS VERSUS BANK OF INDIA AND OTHERS [2018 (7) TMI 1909 - BOMBAY HIGH COURT] was pleased to set aside the orders made by the WDIC and the Review Committee because such orders were found to be non-reasoned or non-speaking orders. The Division Bench did not approve the practice of simply recording conclusions without any reasons to back the same. The Division Bench observed that the absence of reasons in the order of the Review Committee amounts to a denial of justice since it is now well-settled that reasons are live links between the minds of decision taker to the controversy in question and the decision or conclusion arrived at. Reasons substitute subjectivity for objectivity so that the affected party can know why the decision has gone against him. The impugned orders are set aside mainly on the ground that they contain no reasons in support of their conclusion and in that sense are non-speaking orders - The respondents are granted liberty to proceed from the stage of issuance of show-cause notice dated 22.10.2020 and make such orders as may be appropriate in terms of the Master Circular dated 01.07.2015 - petition allowed.
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