Allowed
Royal Trexim Pvt. Ltd. v. State Bank of India & Ors.
Delhi HCW.P.(C)/8450/2018
Case brief
AI extract
What is this about?
This judgment allows a petition challenging the declaration of the petitioner as a 'wilful defaulter' by the State Bank of India. The Court held that the status of the principal borrower as a wilful defaulter does not automatically imply the same for the guarantor, and the bank must establish whether the guarantor had the means to pay but refused.
What did the court decide?
Impugned orders declaring the petitioner as a wilful defaulter were set aside. The matter was remitted to the bank to issue a fresh show cause notice and take an informed decision.