WILLFUL DEFAULT : “Wilful default” not only means default of a unit in meeting its repayment obligations to lender, but also means a unit that defaults in meeting its payment obligations to bank in respect of non-funded transactions/facilities such as bank guarantees and derivative transactions. Thus, defaulting constituent/customer of bank is treated as wilful defaulter even though it may not have borrowed funds from bank in the form of advances or loans. “Credit information” includes not only information relating to borrower of bank, but also relates to constituent/customer of bank which intends to take some credit from said bank. Hence, information as to defaulters of dues under derivative transactions, though such transactions may not involve lender-borrower relationship between bank and its constituent, falls within meaning of “credit information” under S. 45-A(c)(v) of the Reserve Bank of India Act, 1934. Thus, confidentiality of credit information by agreement (expressly or impliedly) between bank and its customer/constituent or under any law (including S. 45-E of RBI Act) does not bar disclosure of credit information. [Kotak Mahindra Bank Ltd. v. Hindustan National Glass & Industries Ltd., (2013) 7 SCC 369 (Civil Appeals No. 8916 of 2012 with Nos. 8917-18 of 2012, decided on December 11, 2012)] CASES REPORTED IN 2013 SCC VOL. 7 AUGUST 21, 2013 PART 3
Posted on: Fri, 13 Sep 2013 16:36:51 +0000
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