Court : Kolkata
Reported in : [1996]85CompCas808(Cal)
Shyamal Kumar Sen, J.1. In the instant writ petition the petitioners have challenged the legality and validity of the two amendments made by the Reserve Bank of India to the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987, which were framed by the Reserve Bank of India in 1987 in exercise of the powers under Sections 45J and 45K of the Reserve Bank of India Act, 1934. The impugned amendments have been made through two notifications dated April 10, 1993, and April 19, 1993. The impugned amendments purport to have been made under Sections 45J, 45K and 45L of the Reserve Bank of India Act, 1934.2. The petitioner-company carries on the business, inter alia, of offering various small savings schemes to the public at large, Under the said scheme, moneys are paid by the subscribers in lump sum or in instalments and the subscribers get back the said money at the end of a contractually stipulated maturity period along with interest accrued thereon and certain guaranteed accretio...
Tag this Judgment!Court : Kolkata
Sanjib Banerjee, J. 1. The writ petitioners question a decision of April 7, 2009 by the grievance redressal committee of the respondent private bank declaring the petitioner company to be a willful defaulter within the meaning of a Reserve Bank of India master circular dated July 1, 2008. There are several levels on which the challenge has been launched. The petitioners allege that the master circular is unconstitutional and, in any event, the grievance redressal mechanism contemplated there under is a meaningless, facile exercise. They say that even if the master circular is upheld in its entirety, the relevant committee of the bank may still be found to have acted without jurisdiction since the master circular applies to lender-borrower transactions between a bank and another; and, the nature of the agreement which is the subject matter of the proceedings did not involve a lender-borrower relationship between the bank and the petitioner company. The petitioners also allege violation ...
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