Sun Jul 06 06:05:21 UTC 2025: Here’s a summary and a news article rewrite of the provided text:

**Summary:**

The Madras High Court has upheld the inclusion of a former director of Zylog Systems Limited, Srikanth Parthasarathy, on CIBIL’s list of loan defaulters. The court found insufficient evidence to support Parthasarathy’s claim that he was a non-executive director and had resigned before the company defaulted on its loans. The ruling emphasized that Parthasarathy failed to respond to a show-cause notice issued by Federal Bank, giving him the opportunity to present his side. The court also noted his involvement in key company committees, suggesting a more active role than he claimed. The case involves a larger investigation by the CBI into Zylog Systems’ loan defaults with multiple lenders.
**News Article:**

**Madras High Court Upholds Inclusion of Zylog Systems Ex-Director on Loan Defaulters List**

**CHENNAI, July 6, 2025** – The Madras High Court has ruled against Srikanth Parthasarathy, former director of Zylog Systems Limited, refusing to interfere with his inclusion on the Credit Information Bureau of India Limited (CIBIL) list of loan defaulters. This decision comes after Zylog Systems defaulted on significant loan repayments.

Justice N. Anand Venkatesh dismissed Parthasarathy’s writ petition, stating that the petitioner had failed to provide sufficient evidence to support his claim of being a non-executive director at the time of the loan defaults and his subsequent resignation.

The Reserve Bank of India (RBI), represented by advocates Chevanan Mohan and Rexy Josephine Mary, highlighted the Central bank’s circulars mandating that company directors be considered potentially liable for loan defaults. The court noted that Federal Bank had issued a show-cause notice to Parthasarathy in June 2013, providing him the opportunity to explain his position, which he failed to do.

“If the petitioner has not chosen to defend himself and has not chosen to give his explanation to the second respondent bank, the petitioner has to blame himself for that,” Justice Venkatesh stated. Evidence presented to the court indicated that Parthasarathy held significant positions within Zylog Systems, including membership in the audit committee and investors’ grievance committee, contradicting his claim of a non-executive role.

The case is further complicated by a Central Bureau of Investigation (CBI) probe into Zylog Systems’ defaults on loans to multiple lenders. The court’s decision underscores the importance of directors actively engaging with financial institutions when issues of loan defaults arise and reinforces the RBI’s guidelines regarding the responsibility of company directors in such situations.

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