Karnataka High Court
Unocoin Technologies Pvt Ltd vs Reserve Bank Of India on 19 June, 2018
Author: Aravind Kumar
Bench: Aravind Kumar
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 19TH DAY OF JUNE, 2018
BEFORE
THE HON'BLE MR.JUSTICE ARAVIND KUMAR
WRIT PETITION NO.17188/2018 (GM-RES)
c/w
WRIT PETITION NO.17189/2018 (GM-RES)
W.P.NO.17188/2018
BETWEEN:
1. UNOCOIN TECHNOLOGIES PVT LTD
A COMPANY REGISTERED UNDER
THE PROVISIONS OF THE COMPANIES ACT
HAVING ITS CORPORATE OFFICE AT
NO.1041/12, 1ST FLOOR, 1ST MAIN,
4TH BLOCK, RAJAJINAGAR
DR RAJKUMAR ROAD, ABOVE SBM
BANGALORE - 560 010
REPRESENTED BY ITS DIRECTOR
SATHVIK VISHWANATH
2. MR. SATHVIK VISHWANATH
AGED ABOUT 34 YEARS
SON OF MR.N.K VISHWANATHA GUPTA
WORKING AT NO.1041/12
1ST FLOOR, 1ST MAIN, 4TH BLOCK
RAJAJINAGAR
DR RAJKUMAR ROAD
ABOVE SBM, BANGALORE 560010
...PETITIONERS
(By SRI. V RAMESH BABU, ADV.)
AND
1. RESERVE BANK OF INDIA
NRUPATHUNGA ROAD
2
BENGALURU, KARNATAKA - 560 001
REP BY ITS GOVERNOR
2. DEVELOPMENT CREDIT BANK LTD.,
#BUILDING NUMBER 1909/553
2ND FLOOR, RNR RIDGE
OPP TO GOVT JUNIOR COLLEGE FIELD
K.R.EXTENSION, B.H.ROAD,
TUMKUR, KARNATAKA - 572 101
REPERSENTED BY ITS BRANCH MANAGER.
3. STATE BANK OF INDIA
4TH CROSS, ASHOK NAGAR
OPP TUMKUR UNIVERSITY CAMPUS
BH ROAD, TUMKUR
KARNATAKA - 572 101
REPRESENTED BY ITS BRANCH MANAGER.
4. CANARA BANK
OPP RTO OFFICE
BENGALURU - HONNAVAR RD
ASHOK NAGAR, TUMAKURU,
KARNATAKA - 572 101
REPERSENTED BY ITS BRANCH MANAGER.
5. DHANALAKSHMI BANK
KUVEMPU NAGAR
P.O.BLDG B.H.ROAD, BATAWADI
TUMKUR,. KARNATAKA - 572 103
REPRESENTED BY ITS BRANCH MANAGER.
6. VYSHYA CO-OPERATIVE BANK LTD.,
DR SRI SRI SHIVAKUMAR SWAMIJI CIRCLE,
B H ROAD, TUMKUR, KARNATAKA - 572 102
REPRESENTED BY ITS BRANCH MANAGER.
7. MINISTRY OF FINANCE
UNION OF INDIA
NORTH BLOCK, CABINET SECRETARIAT
RAISINA HILL,
NEW DELHI - 110 001
REPRESENTED BY ITS SECRETARY.
... RESPONDENTS
3
(By SRI.VENKAT SATYANARAYA CGC FOR R6)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 &
227 OF THE CONSTITUTION OF INDIA WITH A PRAYER TO
QUASH CIRCULAR DATED 06.04.2018 PRODUCED AT
ANNEXURE-M ISSUED BY THE 1ST RESPONDENT HEREIN
AND DIRECT THE RESPONDENTS TO PAY THE COST OF THIS
PETITION AND GRANT SUCH OTHER RELIEF AS ARE JUST.
GRANT AN INTERIM ORDER TO STAY THE OPERATION OF
CIRCULAR DATED 06.04.2018 PRODUCED AT ANNEXURE-M,
ISSUED BY THE 1ST RESPONDENT HEREIN.
W.P.NO.17189/2018
BETWEEN
C.N.SHIVAKUMAR
AGED ABOUT 37 YEARS
SON OF MR.C.NAGAIAH
RESIDING AT SRI.LINGESHWARA
SWAMY KRUPA
2ND CROSS, MARUTHI NAGAR
TUMKUR - 572 102.
...PETITIONER
(BY SRI.SWAROOP ANAND R., ADV.)
AND
1. RESERVE BANK OF INDIA
NRUPATHUNGA ROAD
BENGALURU
KARNATAKA - 560 001.
REPRESENTED BY ITS
GOVERNOR
2. MINISTRY OF FINANCE
UNION OF INDIA
NORTH BLOCK, CABINET SECRETARIAT
RAISINA HILL
NEW DELHI - 110 001
REPRESENTED BY ITS
SECRETARY
...RESPONDENTS
4
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 7
227 OF THE CONSTITUTION OF INDIA WITH A PRAYER TO
QUASH THE CIRCULAR DATED 06.04.2018 VIDE ANNEXURE-
E ISSUED BY R1.
THESE WRIT PETITIONS COMING ON FOR ORDERS THIS
DAY, THE COURT MADE THE FOLLOWING:
ORDER
Petitioners have challenged Circular bearing No.RBI/2017-18/154, DBR No.BP.BC. 104/08.13.102/2017-18 dated 06.04.2018 issued by first respondent - Reserve Bank of India, whereunder a prohibition on dealing in Virtual Currencies (VCs) had been issued purportedly in exercise of the powers conferred under Section 35A read with Section 36(1)(a) of Banking Regulation Act, 1949, Section 35A read with Section 36(1)(a) and Section 56 of the Banking Regulation Act, 1949, Section 45JA and 45L of the Reserve Bank of India Act, 1934 and Section 10(2) read with Section 18 of Payment and Settlement Systems Act, 2007.
2. The Hon'ble Apex Court in Writ Petition (s) (Civil) No(s).1071/2017 by order dated 17.05.2018 has directed that no High Court shall entertain any petition 5 relating to the Circular dated 06.04.2018. The order passed by Hon'ble Apex Court reads as under;
It is further directed that no High Court shall entertain any petition relating to the Circular No.DBR.No.BP.BC.104/08.13.102/2017-18 dated 06.04.2018 issued by the Reserve Bank of India on "Prohibition on dealing in Virtual Currencies".
3. In the light of the said direction issued by the Hon'ble Apex Court, question of entertaining these writ petitions to consider the correctness and legality of the Circular dated 06.04.2018 issued by respondent No.1 - Reserve Bank of India does not arise.
4. It is also not in dispute that these two petitions have been filed prior to the direction, which has been issued by the Hon'ble Apex Court viz., it has been filed on 19.04.2018.
6
Hence, petitions stand dismissed. Petitioner would be at liberty to take appropriate steps in that regard.
SD/-
JUDGE SS