Authority: High Court at Calcutta

Order Date: 15 October 2026

Case Overview

  • Parties: Petitioners – Mahesh Kumar Kejriwal & Ors.; Respondents – Indian Bank & Ors.
  • Nature of Proceeding: Writ Petition (WPA 30298 of 2026) challenging a communication dated 23 September 2026 that declared the petitioners as willful defaulters.
  • Background:
  • Indian Bank issued a show‑cause notice on 24 January 2020; petitioners submitted a reply.
  • The Wilful Defaulter Identification Committee (WDIC) communicated a decision by letter on 29 March 2026 but did not provide the formal order to the petitioners.
  • The WDIC later took a decision on 5 September 2026; however, the communication dated 23 September 2026 failed to attach the actual order.
  • Petitioners argued that without the order they could not file a reply to the Review Committee, violating procedural requirements.
  • Legal Precedents Cited:
  • State Bank of India vs. Jah Developers Private Limited & Ors. (2019) 6 SCC 787 – the Supreme Court held that the first committee must furnish its order to the borrower promptly, allowing a 15‑day period for representation to the Review Committee.
  • Earlier High Court writ petition WP 13367(W) of 2019 – the Court set aside a similar WDIC decision and directed the committee to act under the Master Circular on Wilful Defaulters, communicating its decision to affected persons.
  • Court Observations:
  • The WDIC’s communication dated 23 September 2026 did not include the actual order, depriving petitioners of the opportunity to respond.
  • The bank failed to demonstrate whether the decision had been communicated to the petitioners.

Final Outcome

  • The impugned communication dated 23 September 2026 is set aside and quashed.
  • This quashing does not preclude Indian Bank from taking appropriate action, provided it communicates the WDIC order dated 5 September 2026 to the petitioners.
  • The writ petition (WPA 30298 of 2026) is disposed of.
  • All parties are directed to act on the server copy of this order downloaded from the official Court website.
  • An urgent photostat certified copy, if applied for, shall be provided upon compliance with formalities.

Topics: Wilful Defaulter, Banking Litigation