Wilful defaulter – banking – Declaration – Although the allegations against the petitioners have been summarised while enumerating the grounds put up by the Convenor of the Committee – Do not find adequate discussion as to the representation of the petitioners and the reports submitted by them – The minutes of the meeting in the present case contain a recital that the financial statements of the company have been discussed, and that the reasons put up by the Convenor of the Committee are justified, but record conclusion without prescribing any meaningful reasons – Orders of both, the Identification Committee and the review Committee, must be reasoned orders – In the case of the Identification Committee, this is further necessary because the party concerned has been provided with a domestic remedy of representation before the Review Committee – If the constituent of a bank is inadequately apprised of the reasons which have weighed with the Identification Committee, its opportunity of filing a representation will become meaningless – The provisions of Clause 3 (c) of the Master Circular have been interpreted in Jah Developers to be in the nature of a full appeal on facts and law for which purpose, the party against whom the order is passed, is given an opportunity of making a representation.
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2021 PLRonline 5107 = (2022-3)207 PLRIJ 018 (Del.) (SN)
