Application of natural justice before classifying a bank loan account as fraudulent

The principles of natural justice, adopted in every legal system, are intended to ensure impartiality, fairness and justice in all judicial, quasi-judicial and administrative proceedings and it is equally applicable in the cases of banking system also. When a bank loan account is detected as fraudulent, the respective bank is under obligation to comply with the principles of natural justice. This paper unearths the scope of the principles of natural justice in case of classifying a loan account as fraudulent.