Write notes on the following: Wilful default.

Wilful default A "wilful default" is deemed to have occurred if any of the following events is noted:- The company has defaulted in meeting its payment/repayment obligations to the lender even when it has the capacity to honour the said obligations. The company has defaulted in meeting its payment/repayment obligations to the lender and has not utilised the finance from the lender for the specific purposes for which finance was availed of but has diverted the funds for other purposes. The company has defaulted in meeting its payment/repayment obligations to the lender and has siphoned off the funds so that the funds have not been utilised for the specific purpose for which finance was availed of, nor are the funds available with the unit in the form of other assets. Thus, there must be a default and it must be wilful, knowing default.