VIJAY KUAMR JAIN Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) Present writ petition has been filed challenging legality and validity of the circular dtd. 1/7/2016 bearing number DBS.CO.CFMC.BC. No.1/23/4/1/2016-17 (Master Direction on Fraud) issued by the Respondent No.1-Reserve Bank of India to the extent it violates Article 14 of the Constitution of India as well as the decision/order of the Respondent-Banks declaring and categorising and reporting the accounts of the company M/s Ruchi Soya Industries Ltd. as 'fraud'.

(2.) The Supreme Court in State Bank of India and Ors. Vs. Rajesh Agarwal and Ors., 2023 SCC OnLine SC 342 has held that the rule of audi alteram partem ought to be read in Clauses 8.9.4 and 8.9.5 of the Master Direction on Fraud. The relevant portion of the said judgment is reproduced hereinbelow:-

(3.) As urged by the learned counsel for the petitioner, the aforesaid judgment passed by the Supreme Court is squarely applicable to the facts of the present case as here also no opportunity of hearing was granted to the petitioner, which fact has not been controverted by learned counsel for the Respondent-Banks.