Calcutta HC Quashed Wilful Defaulter Tag for Non-Executive Director Due to RBI Clause Breach

Shrivardhan Goenka Vs State Bank of India and Others (Calcutta High Court) The Calcutta High Court examined the legality of declaring a Non-Executive Director as a wilful defaulter under the Reserve Bank of India Master Circular on Wilful Defaulters dated July 1, 2015. The petitioner, who was a Non-Whole Time Non-Executive Director of a borrower company, challenged the decision of the Wilful Defaulter Identification Committee and its affirmation by the Review Committee, contending that Clause 3(d) of the Master Circular was not applied. The Court noted that Clause 3(d) places Non-Whole Time Di...