Mr Justice K. Chandru of the Madras High Court dismissed a writ petition from Chennai-based Paramount Airways P Ltd praying to quash an order by the Redressal Committee of IDBI Bank. The IDBI order passed on February 15, 2010, said Paramount and its directors should be declared in the list of RBI's “wilful defaulters.”

The judge noted in his order on April 4: “The present attempt by petitioner before this Court is to seek a gag order against respondent IDBI Bank, which has advanced huge amount without there being any hope of return, and the bank is entitled to adopt methods which are open to them which included a declaration of petitioner company as wilful defaulter.”

The Judge observed that these are days of the Right to Information Act where even a citizen, interested in maintenance of public sector financial institutions, can question credit policy of the institution and get names of huge defaulters. When such information is available in public realm, it was too late for petitioner to protest and contend it should not be held as defaulter.

Judge noted that Redressal Committee of IDBI had held that there was no merit in submission of petitioner and that IDBI should declare the company and its directors in RBI list of wilful defaulters, keeping in mind time frame indicated in orders of High Court.

The petitioner contended that the order did not give any reason for the decision. Action of IDBI in classifying petitioner as wilful defaulter was in violation of order of this Court. Delay in payment by petitioner on no account was called as wilful. Company was willing to clear all pending dues.

subramanian.v@thehindu.co.in

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