Borrowers must be heard before fraud tag, says SC

Banks Must Hear Borrowers Before Classifying Accounts As Fraud: Supreme Court

The Supreme Court on Monday rejected the State Bank of India's appeal, upholding the Telangana High Court's order and ruled that it is reasonably practicable for the lender banks to provide an opportunity for a hearing to the borrowers before classifying their accounts as fraud. A bench of Chief Justice Dhananjaya Y Chandrachud and justice Hima Kohli uphold the judgment of the Division Bench of the High Court of Telangana dated December 10, 2020…

Borrowers must be heard before fraud tag, says SC

While Monday’s apex court’s judgment is aimed at protecting the interests of borrowers, bankers are still assessing the fine print before deciding their next course of action.

Serve notice before tagging bank accounts as fraud, rules Supreme Court

India Business News: NEW DELHI: Observing that declaring a bank account as fraud could be fatal for the borrower leading to his "civil death", the Supreme Court on Monday .

Listen to borrowers before classifying accounts as fraud: Supreme Court

The principle of natural justice – audi alteram partem (hear the other side) – demand that borrowers, who face a condition akin to blacklisting, should be given a chance to be heard first.

Borrowers should be heard before accounts are classified as fraud: SC

Bench says the principle of natural justice demands that borrowers, who face a condition akin to blacklisting, should be given a chance to be heard first

Borrowers must get chance to be heard before account is classified fraud: SC

The apex court noted that classifying an account as fraud entails serious civil consequences for the borrower, and amounts to blacklisting