THE SUPREME COURT HELD THAT BANKS MUST HEAR BORROWERS BEFORE DESIGNATING THEIR ACCOUNTS AS FRAUDULENT SINCE DOING SO MIGHT RESULT IN THE "CIVIL DEATH" OF THE ACCOUNT. In a case where the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions 2016 were challenged on the basis that borrowers are not afforded an opportunity to be heard before their accounts are classified as fraudulent, the bench ruled that while borrowers are not afforded an opportunity to be heard before a FIR is registered, the principles of natural justice must be necessarily read into the provisions of the law. With a team of Commercial Law experts, Reddy & Reddy Law Firm has extensive experience and involvement in commercial disputes, including Insolvency Proceedings. We are regularly involved in representations before NCLT, NCLAT, DRT and other commercial tribunals in India.