In Brief
The Supreme Court examined whether borrowers declared "wilful defaulters" by banks under Reserve Bank of India guidelines have a right to be represented by lawyers. The Court held that in-house bank committees are not statutory tribunals, so advocates have no unconditional right to appear. However, recognizing the serious consequences of wilful defaulter status—including five-year finance bar and insolvency disqualification—the Court mandated procedural fairness: the First Committee must issue its order to the borrower, who then has 15 days to submit written representations to the Review Committee, which must provide a reasoned response. The appeals were allowed, modifying the RBI Revised Circular to ensure fairness without permitting full legal representation.
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