In absence of serving the order of COE(Committee of Executives on Wilful Defaulters) on the petitioners, there could never have been a declaration of the petitioners as wilful defaulters – Ravis Exports Vs. The Union of India – Kerala High Court
The Hon’ble High Court held that in the absence of serving the order of COE on the petitioners, there could never have been a declaration of the petitioners as wilful defaulters since the Master Circular as directed by the Supreme Court in in State Bank of India v. M/s. Jah Developers Pvt. Ltd. and Ors. (2019) ibclaw.in 136 SC contemplates declaration as wilful defaulter only after serving the copy of the order of COE and the consequent decision of the Review Committee. The procedure adopted by the 4th respondent while declaring the petitioners as wilful defaulters has thus failed to grant an opportunity to represent on law and on facts against the decision of the COE. Without giving or serving to the petitioners the order of the COE, petitioners cannot be expected to represent against the said decision. Communicating the content or conclusion of the COE to the borrower through an officer of the Bank is not a sufficient compliance of the requirement of “giving the order-to the borrower”.