TMI Blog2013 (10) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... f wilful defaulters and advising the petitioners that a representation could be made by them to the Grievance Redressal Committee of the bank. The petitioners issued a reply on February 2, 2013 questioning the basis of the formation of the initial opinion. Thereafter, the bank gave several opportunities to the petitioners to be represented before the Grievance Redressal Committee which the petitioners did not avail of. The Grievance Redressal Committee, by its order communicated to the petitioners on May 27, 2013 rejected the petitioners representation. The petitioners refer to clauses 3(i) and 3(ii) of the relevant Master Circular and contend that it would be evident from the minutes of the meeting of the screening committee held on Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a wilful defaulter. The consequences of a person being labelled as a wilful defaulter are serious as it, willy-nilly, leads to the commercial ostracisation of the borrower in the sense that credit facilities would no longer be available to such borrower. In such circumstances, the distinction between a person unable to pay and a wilful defaulter as maintained in the Master Circular must be appreciated and the procedure as laid down, inter alia, in Clause 3 of the Master Circular should be strictly adhered to before a borrower is branded as a wilful defaulter. In this case, there does not appear to be any application of mind by the initial committee of the bank, far less any reference to any material demonstrating any wilful default ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and by setting aside the decision of the screening committee of the bank as reflected in the minutes of the meeting held on January 8, 2013, limited to the case of the petitioners. However, the bank is left free to start the process afresh in accordance with law by adhering strictly to the procedure as laid down in clause 3 of the RBI Master Circular. Since the bank had been put on notice at the initial stage and before affidavits were called for, that costs would follow if the bank could not sustain its decision on the basis of the procedure as recognised in the Master Circular, the bank will pay costs assessed at 300 GM to the petitioners. Certified website copies of this order, if applied for, be urgently supplied to the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
