In Mr. Milind Patel v. Union Bank of India & Ors.[1] (“Judgment”), the Division Bench of the Bombay High Court (“Court”) has inter alia held that lenders/ banks seeking to invoke the Reserve Bank of India, Master Circular on Wilful Defaulters (“Master Circular”) for declaring entities and/ or persons as wilful defaulters, must supply all relevant materials to the noticee, which includes not only incriminating material but also exculpatory material. The Court therefore clarified that a bank is obligated to provide all relevant materials and not just information ‘referred to’ and ‘relied upon’ in the show-cause notice when conducting proceedings under the Master Circular.Continue Reading Relevant or Relied Upon? Bombay High Court Clears Air on Disclosure of Information by Banks in Wilful Defaulter Proceedings
Aniruddh Gambhir
Senior Associate in the Dispute Resolution Team at the Mumbai office of Cyril Amarchand Mangaldas. Aniruddh specializes in commercial litigation with a special focus on insolvency matters. He has also had experience in general disputes and advisory work. He can be reached at aniruddh.gambhir@cyrilshroff.com