9911796707
TMI Blog2013 (8) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... provides for an initial committee of high functionaries of the concerned bank or financial institution to be entrusted with the preliminary decision to classify a person as a willful defaulter. The committee, as per the circular, should be headed by an executive director and consist of two general managers or deputy general managers as may be decided by the board of directors of the concerned bank or financial institution. 2. Clause (i) of paragraph 3 of the Master Circular requires identification of cases of willful default to be entrusted to such committee of higher functionaries headed by an executive director "with a view to imparting more objectivity...." Clause (ii) of paragraph 3 of the Master Circular mandates that a deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... representation and the borrower should be suitably advised. 4. The word "thereafter" and the expression "proposal to classify" in clause (iii) of paragraph 3 of the Master Circular read with clause (v) thereof leave no manner of doubt that the exercise under clauses (i) and (ii) is only a proposal, whereupon the would-be willful defaulter is to be forwarded the preliminary decision "along with the reasons therefore" for the concerned borrower to be afforded reasonable time to make a representation against the decision to the Grievance Redressal Committee "headed by the Chairman and Managing Director and consisting of two other senior officials." It is plain to see from the scheme of paragraph 3 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... faulters who may have diverted funds or may have the ability to repay but fall prey to the Indian habit of not paying the debt due from them. 6. Since the preliminary opinion impugned in the present proceedings is devoid of any reason or any evidence as to why the petitioners have been proposed to be classified as willful defaulters, the notices impugned dated March 5, 2013 and April 13, 2013 are set aside and the preliminary committee of the respondent bank is left free to proceed afresh in accordance with paragraph 3 of the Master Circular. 7. Nothing in this order should be construed to be a certificate to any of the petitioners and the bank is left free to collate the material to brand the petitioners as willful defaulters and take st ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
