In Brief
A borrower declared a wilful defaulter by in-house bank committees under RBI Circulars sought to be represented by a lawyer. The Supreme Court held that these committees are not 'tribunals' under the Advocates Act and therefore borrowers have no right to legal representation. However, the Court found that the drastic consequences of wilful defaulter status (5-year bar from finance, management changes, IBC disqualification) trigger Article 19(1)(g) protections. The Court set aside the impugned Delhi High Court judgment and required banks to serve the committee's order on borrowers and allow written representations within 15 days, with reasoned review orders served back to the borrower.
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