Karnataka High Court
The Bank Of Tokyo-Mitsubishi Ltd vs Klen & Marshalls Manufacturers And ... on 2 July, 2008
Equivalent citations: 2008 (6) AIR KANT HCR 111, 2009 A I H C 19
Author: B.V.Nagarathna
Bench: B.V.Nagarathna
P""
1:: THE HIGH ovum or KAR}1ATAE£A..AfI_' '
DATED 'THIS mm 2"" my 05* 2eQa_1 f "
TEE szow ELIE Mr . cmxafi # 2 , ;:Js=1*:c=:':E
A:: .N: § , _
THE 2-sow mAaa.RATHNA
1i§§.5V'i'.23z§é'f"2£$06 C,/W
pgm-m¢a<.~f mi. v1..é3.c.i3/2095 (ma-mar)
BETWEEP2: V' " " ' "
g.§.No.:;23e.4/2035""
"o.§_.=f " --jm<Yo~MITsUB1sHI LTD. ,
'-{?£t:xI«2z«m§$;?";-3_1i'sfi BANK ca:-:~* rem LT£3'J. , AND
Ncis: AS mm BANK 03' '3.'{I(YA-- '
A mmsimisaz UFJ LTD. ,)
émwauy INc:cRpmATEn 2:}: mm
__ THE mm 03' JAPAN HAVING ms
" " '"'REGIS'1'ERED omen AT "'7-1,
MA1:a.1No-LICHI-»-2 mm, CHIYOIJA-KI}
*1-cmao---1oo~83as, mm wrm ONE of ITS
Bi QEFICE Ammesw mmvmcms zm
INDIA AT zzozmsw HOUSE, 15"' 31.003.
w 2 _
VIHAX K.SHAH MARG, NARIMAN poxnw H" u _
MUMBAI-400 021, REP BY MR.Q M Am3sARE}
ASSISTANT GENERAL MANAGER Ann yéwfig of ' KW'"*
ATTORWEY HOLDER
*F....*9gTI$1dxޤ
{3Y SR1 RAJEEV NAIR Fd§=MXfi fl§Lé§ §uHoLLA,"
Anvs.,) *~ \*a&j ~.n »
AND
um.-.-..----
KLzN1& fiARBHA§$$'M§EUFA¢TURERS Ans
ExpQfiT3Rs LT§;;=§&¢§M?AN¥ INCQRPORAEED
UNDER TEE F2ov;s:¢Ns'oF was
. comgénzas $CT,W;$56 HAVING ITS
V, gfiéisffiafin OFFICE Am No.12
"_Ng$L$§xpg"g@3mA STREET
T $AGAgj7gfiE§uAI~soo 017
" ' '"i RESPONDENT
<j(B¥f$§i*K.G.RAGHAvAN, SENIOR ADVOCAEE FGR QUA
' Assocxamgs)
'{f""THIs wax? pgmzwxox IS FILED UNDER
*féRTIcLEs 226 AND 22? or THE cnmsrrruwzcn 02
'~:NnzA ER&EING To QUASH AND SET ASIEE THE
{}UDGEfiNT AND QRDER DZ'. 19TH OCTQBER 2005
(ANN-F HERETO) AND JUDGIEENT AND ORDER. i}'1'.7'I'H
an. iflflnflln q_anu.un...us.»
LA asslrnanallp. nursing: Linllglmlnsizmamn can lamina.
tvxuflfie son. nuu--.__. -.._....
l'|.l'lI\t'I.l'\l ma uunnn nae-any unlulzslnsuuna
\ l_l£!\ILl unauiunluuu In sunnn I.I£\IlI mum
KLEE & MARSHALLS MAHUFAcTuRsRS,A$fi
EXPORTERS LTD", A.coMPANY I§coRyofiA$EE 7;»-
UNDER THE yaavxsxons or Tagxp V
COMPANIES AET, 1956.fiAvI§GM:w§Q w_
REGISTERED erwxcg Am fiQ;12M3f x'"
NEELKANDA MHTA=$$R£mT=fjV A._ __
T¢NAGAR, cHEm$A;%$o§{0i? iV "W5
" V "" "" H p ;1,*RESP0NDENT
{BY SR1 K.Gf£AQfi§V$N¢ SENlbR,ADVGk$E FOR mug
Assocramss)'. . *"«"~'*.»
THIS _.WRIT ' PETITiOfl Is FILED UNDER
ARr:cLEsg£2§ Agm 227 93 THE cnxswxwvwzaw 0F
Inn:A .§RA3:fiG_.§e_ QuAsH Ann SET ASIDE $33
; JUDGEMERT ¢§fi§aJ$RDER mm' 19Tfi ocmoazm 2995
7(§fiN~F aa$EwQ)*g&m JUDGMEET AND oanma QT.7TH
«15m$U$r, 2a¢5"gANm~N HERETO) PASSED BY THE DEBT
RE¢fifiEgz«59§ELLATE TRIBUNAL, CHEENAI IN APpEAL
R%f§fi¢é3)a5-AKD REVIEW PETITION uo.2/96 AND ETC.,
. "j-_ "géfiésa 'WRIT pswxwxoms HAVING- BRENT HEARD
";$fiD"' REEERVED FOR ORDERS, THIS DAY,
3fv.NAaARATHnA .3 PRONOUNCED THE FOLLOWING:
Those writ petitions f:._ ._ >
challonging the éau-non orddfi:
passed by the mm:-' 1i»a'¢'i::-_nf§:r;;r
Tribunal-Chennai vnnmv f:aho:t)
in macullmeoua %%%%%:§§«.e2I2c¢s and
xiacell moons fie. out at
an Intu::i:§V V2"-.292-3 in original
applicaeigg .'_$£é?駧O and Original
1 _--H9:§2fli'§OO._ Mflitting aside the
cazdcxr data: -id%j;s.%m:oa%L pgaud by the Debt
Rocafrszsg '1';i:z':!v§vV;'.nei1-.??an§1ga1ono ('mm-* , to: ahm.-.-t)
No.4I2003 filed by the
I . f u in Original Applicatian
' _ NOA.'325!__'2'0#3 and Original Application
'"5?i'%= §:o,.329:;!%iooo pending hereto the non: noacarvory
and also challenging the common nxdar
-daamtod 7.5.2006 panama by the Dam in mwiaw
Pctition He-.1l2006 and review Petition
f%i*i*
.. Q ..
No.2/200.6 filud by the petitioner herein in
the aioroaaid Hiaccllanaous Appeal No.82/Z095
and Kiacsllaxaous Appeal Ko.a3l2005
2. The rclwnnt £a::ts;" e£_'_'
are that tho pot1t1onot'V_i,:"s....V_a
made: the 1.311: «at
otficoa in India. mm): at
Tokyo-Hitmhiahi Oޤ;tna11y. 'rho
Bank licnnao to:
business in Calcutta.
at pp; 13 to Annoxuxc-C dated
or, The Bank of Tokyo
in! Banking oporutions at
obtaining license from the
V'~...._'_'V.ntsnm*§_"1-Bank of India U331'. fox: shark: as
' "7§a§'%'A;nxh1h1m-n am e to Annoxuxo-C datod
%% a . s.19sa. Bubanquontly, 'rho sun: of -.rc-rye
. mxgm with The Mitsubishi Bank Limitm and
%";:i/
111
the RBI an 90!: Exhibit--E to azmoamx.-0-C ditgd
30.3.1996 eonvoybd its appratval for
or its mm from The sun: oi! roryg
mu Bank of Tokyo*Hitsu?§i§1§i« «3l_'a1:a.:5'«.. ,:,_':
merger . Tho RBI . 'V *
xmnm 9/53 and chugaaajae A
rm: Thu Bank at :9 ska: at
Tokyo-~!£1t:mabiIh.1 1'.at:'§'.-.', thus an:
puhlishoq E. Gazotto or
India the Bank
on 27. 4. 1:5-§'6" Annatnxa-C .
ma Bunk .Ltd., ulna sued
ram No.§9_ o§%%Lksk,a.19§e with the Registrar of %
'mac-h short) regarding the
in the am of the aunt
:--y3}1:.ta:at1ona carried out in than
Articles af Association and List
% and the sun was Qpxavod by tho
23.7.1996 in pot Exhibit:-R to
mm: 3 to Annoxuzo-H dated
K t t
24.8300' is 1 copy of the loetu: from Daegxiaty
ma, mm, mm and mzyam.
noaistucian or am: of Tokya :.1:a.%k.. M Q
119.2202 andcozunqnnnt
and registration oi tom
593 cat' the comma a¢:;k19$s,%%k the A
am: of the max «:3 to
ma hunk of . u.o.£.
1.4.1996 to:
ostablisluiéirg"'_: '$£.: huainoan was
hthibit-I to
fun in roupoct of
!'o::m._.Bc.'i'§ paid by tho Bank on
.-"s{'}13-§aa,.p% '''' it A to mmaxuxo-.1.
this stage, it: is pertinent to
V7-<._'_"flIlInti£J:¥1~thl1= Ill'!-1' Ban]: Ltd... 4: Banking ccupuay
undo: the laws 0: Swan muzgod its
V. apoxzationn with The Bank of Tokyo-
. ltitsuhiahi. Ltd... and acaondingly tin morgod
..-4"'
an-ax
Bank': Indian operations tack offset:
3.1.2006 and post-urges, the
has boon ta-amid as The nan:
mtnuhiuhi um. mad... man ski
26.12.2005 ixxionund. tug
changu of nut fzcu V
Hitaubiahi Ltd... .Vf :9 &_ ?ro1:yo-
ltitsuhiuhi an w in:
Imnoxuxo-H. is 3
131.2803: by the R32 to
the pltit-.'_i&iI z'E' : ' V llotiticationa
«wad 25.12.2995 change of am
and Exhibit "6' 1:07 is the latter
«2é§.'12%%§2ega i.'6:uandnd" """ to the potitiom.-:
modifications of tho um
fat the' than original liaonao.
'' maponclent is a Public Lituitod
. inm zpaxutod undo: the Germanium act:
India and had an acczmnt with tho
,/5?"
.. 19 ..
potitiamz--Bunnk and an from title to
availing mu-iaua mkhg tacilittos
potitionon--Bank. mu or the Cmdit ;.w.t;.a =
nunctiomd by the petitions: £6 "Bhg
um cwmmiu am
mxim the mm as
facility, the the
patitiemry am :1:
3.3.40 and
accepted Hnchinuxy
Z.td.. duo data aazy
cndox.w:-#5. " :1'-#1:: the petitiontr and
othe; _ 'nae respondent had also
A£h'a*'*':5§titionoz can Bank Guarantee
lath: issued by the Stats Bank
of' to tho patitionor to the
"tho zcoapondont. 'mu zroapondcnt had
'' authoziud thus petition.» to man a.
" aqmnd on the laid Bank Guarantee deposited by
it: with the petitioner as Q aocnrity to: tho
.. n ..
diuecunt of fiauuroial 3111: in favour of the
respondent, 1: payment due on the cnwgtsial
Hill: was not xtacoivod by the
the rusptctivl duo dataa. 'rho
amount undo: the 3111 or mc.haago¢_ &x
by the petitioner to A thI;}_'
respondent. on the dna: jagt§." ' A
sum zequixod to _ga by
the acceptor of '3§:_%_.'3.1a. i::V1;'§." dixoctly
to the with the
potitioafilt; " -- ii'.
5. did not receive
at the respondent: an
'a1'as§ 'a1; u can hmoticiuy, the
thohanh Guuzancoo and leads
Am pawns: at an Bxincipal
am of 38.40 lnkhu. heading' to
it did not rncuivo that mount
-13..
6. It apyun that Indital C¢nut:uc*;-£90
llawinazy I.t:d., tho ace.-opts: at the
Exchanges had adds.-toad two lattgfili.
22.7.1991 and 23.1.1991
intu-alia, stating " ' V'
rupondent; about the V
the contract pm r.a.x.m.-.
returned the to the
roapandoat . . '.§.311hI!:b¢VV1uont1y, tho
rflptmdont hauii from the
potitiamn at llxnmango
as also the money due
from _ to the
pQiEiti91i§¥,¢a':_ of 1:1» dntoaxltod
% mmneg cm 3111 of nxetungo. tho
L'e.:2¢opt<.dr::.__ '§a tho zospondont Memo liable
ta petitions: thin mount duo on tho
since the petitions: did not
pqmnt from the zeapondsnt or under:
Hank. Gnu.-antu, the respondent memo
l|:I..z|l ups unuannpurn uurnuuu |.:|n._n-In.-Au'n_:\u I
uuunnnpnuu II In: I.JI.II.JI|..JnI||I| a -
X 1! 1
1111510 to than potitionux. Thu potitiogiex,
bcsidts tho Bank guarantee, had
aocnxitiou. throw the zoapondont
pctitiamz audited the p:m¢ip¢:.u;m%
since that interact on
not rnecaivcd by that petiefgfngr
original App11catig§,..V_go,'3§VT.?2j§§fi._{u§§iéh £l.a the
aubjc-::'c mutiny: of nu filud
W W % rospamant.
Iaditnl and seats
kn}: ns.1s,1a..5a9.o¢
pulse dun and nynfiu
5.'! the 2 and further mm of
5V"~au.:;is2,s7a,§s being the aztzuonca in
.7 rate of instant and utdmtuy
duo tron the respondent
3 'A' in tho copy of the 021911131
' no.327/zooo. %
Illfilll I-l'\ILl'II-lII\II-l'\I If' I\IfIfi'\ IIf\III I-!\II--l'ILl'lI\I\..l\l I3 IIIRINIH lllhllx LIIILIIQJL
'.9. Similarly. the respondent
forwarded ta» tho potitiamz two
uncanny: turn': an aggzogata vain: at liq}
drawn by tasponknt and V'
Iixlouknx Mi' united :9:
dam my ondozaud p§ym%:m %%&
potit iomu . Tho zsfiggaéhhth - ' fufizztahod
to chm pctitionnx fii Emit g§m¢§nz.m. in: an
aggrqata by than
state Qgidtoanod to than
potiticfsiiiv the mmondcnt.
an. tbs 7dh§V @§§§g":§k§j fiatitiano: did not
roonivfq duo. In the
on behalf oz
had also on its um bchalf an
savored that bank guazantus
j - .._'__.'t'sfo::::«vs:§__A'1~ to chew: and lands an demand for
":.fi§i§§ipnl aggzogata at nu.5o lathu. aaeotding
the petitioner. it did not xccacivs the
MM'. \
.-..-.4-nu. Ilthull \..n|I..nI.:|l\lI.ul'\l .If\ I\ll"'i("I"\ l..l£\ILl '\'-f\I\'iI\'!KI)I\'f\I -Ir' E)In(T"n "fill
I u 1
8. It' appears that lilmlcirloakur
Limit:-d, tn; mcapto: oi: the bills at V.
amzasuoa .4; xoteuz dated 1.1.1997 :9" 'tz;oAj,s§i§§s%MM%'LT%%%4
Bank of India and
the pttitimnr, into: ag3,!_.u, VV
obligations undo: the hm k
aottlod long back
to adviao the ,.mm.x :gcso;mci11ac1on or
tho hank. had to and
Into: ¢£ quunntn
J.ot:tn:::I: %"£o=.':f t£§"" 01 India.
subuoquuzn1.f3.1r;V mceivod the
money _ V .y's£i§i$ner by discounting the
kh1;1V[§': upon the duo aata tho
colloctud thn nmwgr duo from
i had not deposited tho sum in
with the pctitiancr. The
heuidns thi hank guarantees, also
. other a.ocu.r1t1Il £1-as tho xupondent: from
the petitions: noleaaad the principal
A
.. 35 ..
mm duo but sine» the intczont on fthn
pninaipa; sun was not mcaivod
potitiomr, 0.1.-iginal Application
(which 1. the Iuhjcct
No.12304l06) was :11": ;,¢gmmn-;
am Btato non: at
na..1s..e4z,19.1.a, means:
me am m at
M.1.97, §.U;'£'fII:unc:o in thy
and statutory
rate firm tho zupondont.
is a copy of
" . ' no. 32611000.
the ask: of couvnnionaco, the
acumen to both thy writ petitions
to w.a.xo..123o3/zoos have been
é ' 1 .: .';:'I;:£c:z:ed to.
.. 11 ..
10. In than said Original Pyplicutigésap;
the roopomont filed an Interim
H¢.U2002 man: Section zmzay
21:13 en: the nwwuy of up
financial Institutions
for short} twining a V
an1nt:n$.nabi11.1:y 0:6: agpxigation
and praying that sand and
doaidod as tho gxzound
that the ¢ir1Vi}13i1$1e to £11: tho
oz1g1::;Cn'i'VT' account at non-
of Sections 592
and 593 Act, 1956. annoxuxo
52..-4: or am said Intezm
by the respondent. In
maid application filed by tho
the putitiomr filed its reply. A
" as the reply or thin paticionan dated
% *W%j'jV m.12.2ooa along' with the exhibits in pxroduccd
~ as Annmmzna 'c' ta the writ patition.
J;
M//"
1 u 1
11. . after heating both sides on
zntaxim hpplication mt-naagaom by igg';
urea :.¢.3.2oo3 dinmissod
observing. as fallout : -
""...........'1'ho Loaznod Counsel for 1:11»
Botitione: triad. to go behind
than documents and chnllong
their aoncluaivunwa. I think
this count in not open to
uptcially in this forum as not ~ 2
of thus dacmnontn on that: vary '- _
face am»: as being inarasd "
«agent at the powers " '
in various p:ovis1uw;xna'~»v"
noqulntion Act. "
clear £2-an mijait tin-' _Fz_' .
originating tram', tha, ' '
Bank of India t:h¢t*.umt
Bank at Tokyo. I.td.,'2__caqnu" £6.53
rmmcé as The 'Bunk
ltitsuhiuhi, Iatdg, tho P§::l:i.ca_!:l:
hnxoin. fife' '-!;hu' ttzatual.
foxy», I.t¢1.__ ," "in__'-:__ :3t:s_t j.ato:iJ.y
accozéiud ta Kpzrannt
lwplicwiflt. notgithgtnmiinq tho
actuate the '
Vdonnfiol for the
. t';i'w' to «snail the
Oi; otherwise of the
'doéz;m§n1:tn_¢"'V advoxt-ad to 31191:,
N133.'-:h' f'ir¢lI,32§V. rightly relied upon
by t2z9"*'.n;inpondunt. I an afraid
such a" line of argument dam ad:
fix
fut
1.10 in the month cf tha
Putiticmr and certainly not
within tho jurisdiction of.'
'3'.'z:1.h1ua1........."
A copy at tho am: da.to.¢;L»_1l.3L2G§3.'V'fl.VgVV A
produced as Amumrc 'D' 1:¢
12 . Blinfl uygxicvocf 'vthov.
than roapandont
1to.a2I2oo5 and x.a.no¢:§L3k_éab5f um,
cmnnai. and %;4§¥£ .k at
Amati is at to the writ
pmnmgj tho hnarizag at I
the and tho respondent
made _o:a I." A"»a¢1Vé:i;i:ton aulxniaaionn. The
_a1¢'§6"""fi1od fin, 1-mid: won
1311'. The respondent had sought:
1:6 ::ogo.:ncling:-
8) l"2',té-ct at 11019:; [b] subsequent:
* +.__ru§:i.atratior: at tom No.49; and (c) rxand
u thy registration «of ram Ne.49.
'flit, during the course of arguments, the
V U issues won related only to (A) I: (b) Impxu
jfii»
and 11: was observed that Complaint and mlttI1t:ll "
relating to alleged. fraud in registration._' '§§ '_~
tam No.49 mam already batoro the " '
of companies, ROI' of New
also boron tho Ad<!l.€:r_Lio1'.' *. 1fi£§traf§¢1ivtaz$'=--4' "' '%
Hawziatrnts, rmbai in a
this xognm by the wéfilévé be
outside the puxvilw hf " to
dol iborato on this Qfitio BEAT,
the pstitiat5.I:§1M'V_»i1;$§& .: .%'j:§:$35nead out two
card ti czataaf" " :3': ' V Eggistmz at
Coquniol gocazding the
fiimm . -V of Commie!
zotarxod to at
{all Akzbsfj; the nu: iguana tho
tor conuLdo::at'.:Lom:='-
&--._ V.'fihipthoz than 'The bank of Tokyo
._i.t:i.1.t..'"haa merged with that Kitsuhiahi
Limited, and bncamo an new
~.. ¢f1tity 1.0., 'The Bank Of Tokyv
Elitauhiahi, Ltd. 9: it is only a
chnngo at name :31 'Thu Bank at
...g;_..
Tokyo, Ltd. an 'The Ban}: of 'I'okyo-;"'~--,
Hitsuhishi. Iiatd. T
1:. fihothar campnanco is
undo: Soctinn 592 or 593 .
comaniu Act. 1956. T '
c. flhethuz than Vv
Registration of ram ago;-ass ¥.t:.mW
you 2094, in ::osp¢£s~t; "'o£ m¢*2g6r_':t6»9k
place in the yIIn.1:_____1-9_9'3.__ an:i~_199_£3,
would cure 1:hn'"s:1g£o::t"'j' " "
me. on the gm-. the
tollawinqg :11. of mu:--
*4. my.nm% 9/53 dated 9"'
Kay "1953¥iam:p6..._ by Reserve tank at
Ind1_a;._ of Banking
operation -_in $,'«!iO.'t'.<'::i.IIO of the pawn:
gcaanforxad "again tho Mantra Bank cf
hy'"'£n.:::t;ion 23 at The Banking
_ cde§.>a::.5,os net, 1949 (nan called as
--v.'£h9" _Bai1.¥ing Regulation: Act; 1949!
fitzthsprihaing the Bank at Tokyo Iatdq
. "to agar: 8. lax.-am:.h at Bombay subject
t:e__*'t1':a conditienn znontionud in the
.§.ot«;ez dated 9'' Kay 1953 addressed
.. _ Deputy chic! Officer, Iumazzvo
~ of India. This liconm has
«been amended an 1-W August 1996 and
the 11% "flu Bank of Tokyo, Ltd"
was scorod on the licence and in its
place mu name or the Qotitionnx: as
it than was namely The Bank ofi
I'okyo-fliitaubinhi. Ltd has been
gév
14. Actor conaidaxing the oral. _
:3 null as the wzitton
petitioner. had not with kséz,
?a1':t xx 01: the
diapcacd of by .'/_'.:VV.-: $§:_:z:lc:: dated
19.10.2905, -. a;;m.,k%%[kfa§12oo5. TM
putitionoa? Review rotition
the acumen antler:
and copy of thc add
mriqu ozdux dated 11.1.2005,
the operation at its
19.10.2005 and the and cndax at
ism tint to time 1:111
of the review petition.
15. In tho said rwiew petition, the
, potitianar tiled I.I¢.No.«IO/2006 £01: moncluant
y
as an; lulanouilh nu-nu: I.l'\l!.lII.l'I.I\IIml'\I lf\ l\!l'If\"\ I...I€\II...l \-l'\l\JI\-l'hI3I\-IXI .If'\ l3If\(\"'h I.I"\lI.
up nu
Exhibits. Annotate 'J' is the
I.A.No.-I1. The tollawing _
anncxod to-1.1.33.4}. thnnoxuxo-J3 T'
"a. Com-uterisod ltocni.pt:'_'"c§ntied'* 5*?'
august 1996 issued, by 'B.Ac'¢1at.t§.Tt;_6f "
ccupanioa, NC': nu:-12:1, and
xoaeoxding umipt "»tou'.;:£'u.'.d
cash for filing of
23" my 199s.t%zx-as
1:. Letter duud_ 24* 2004
from Ru¢ia1:xa:.*"""v::£fj C'cI{@_-IIa.i.egI"»' to the
Potitiag-:ai":::._I'* '1_'h5_.m~' '*J,yI'ii:i:a_z_:__i records:
rogiatxaxtfiijqz ~o£'__ aank. at Tokyo,
Ltd. ? .sl.;Vno.:=-2'o§2»' and that
jut...' _ tl_1"e._ ' and
tiling .fzc_ag£,;s'tzagioa. at fom
No.49 "Eii¢ti._¢n.._'"~593 at tin
6.10:»1k.¢:t:,*VV'i936';--~._f*.:ho am: Thu
man}: of telsyo. ca mu
Bank of T013»-V-Hitsfibibhi, Ltd. with
juffoctfifxom 1" 1996. (Ex--B 1
am-,oa 2" Jun. 2095 zmu
._o:.'" Asémanina, NC!' at Delhi
and to the petitioner
foxttaarii of Cocwlaint laws:
'.\p:11 zoos addressed by
magma»: ta Registrar at
A 4: * mplying £0:
*--.da;:egigtxut1on of the Potitianur.
at caupxaint data}. 23.4.2005
by the respondent to 8.06, Delhi
amlfiazyann."
1321a
16 . The petitioner alas:
I.1..xa.2aaIoa to: xaisim
and Anntxuro 'It' in the
application 1110:!
'rho petiticnar alo £i1éd.V:VV:'I.A.H6;-K15! for V
bringing on dbdfionts,
nuualyq the of
14 .6 .2006 V pntitiom: on
13.7.2;<:3a£ at tho
the petitioner as 1:
Foreign "tho Commie: Act. 1956
mm: petitioner had in tact
592(1:L) cu'. the Commits
that no further action was
in the matter. Th: and
%%* 1%.k3§.'%1::a.41axzooe along with aaaitioau
. are annexed an hnuxuro "IE to the
~ ufwnit petition. The petitioner: £1105 written
% , " (C411 No.3l3/04 . oz .oos/ss~97
.. gg ..
uu1=u.i.sa1r:.ma- baton MAT. Chunnai uh1ch --"a;:o
annuxad as Annuuza 'P' to than writ 2
on 11.4.2903, em.-:1ng the course at
the laaznnd sonic: counsel 'V
has ruxnishoa a 3.-ctto: mm~;¢m%p.usa%%m1:g.;\:%%
by the Rescue hunk of 'V
cm potitimar at
The Bank .. of. 'rainy; J #110 Bank -of
caaxiod
cut in iaauod by the
Rnsnx'§i"'haRi?;;.:v name: at Taryn
m:d.. 1-ha i,u;mt.a as follows:
~ or nmn
.- *%ornmmmo2xam'1wsmm
A. .....
,._';15, fiflflfli scams RQID
'V mm: mm 2310
CAISTJTTA-700 001
14" news? 1996
1111
lfitfiakt}
kj ' hand dnlivtzy
M"
The noqiornlxmutivu £01: India
and Guncnluanngc
The Bank err.' 'Bakyo-xtsuhishi I.t:d.,
'hrccvan may
811:, Pdléata Road, Fort
Post Ban: 180.1762
ltumhai--400 om
Dom: Sir,
1 Pleas: tutor ta mating
with you; on the
captionpggv herewith the
fol ' mwdcd:
1.1
8'~l(?ay_i$53 isoztaining to your lnmhai
' 'V bxmmh.
.
lIo.BI»C..2ll62 dated _ 1962 yortaining to yam: new hranm and ' . V. . Lic.No.4118lInnp.$2 ':1 licences latent dated Remember 1952 pertaining to No.6'-31.12152 dated 3.1' Havuwcx: 1952 for cacrying on banking - business in India. cowering fix
- N I
2. Please note to submit the unfimotod oziginal docmnnts to ma to:
imodiatnly on haing traced at your and: H 1} Litzauae T
11) cwoxing Latter: Hg';%nm=.1é22f3.'-1-53 dnttd 8 my 1§53_____ 1:9:
lictnce .'~9/53" 9. A an 1993 1113 Covering hrttox:-I V H0';BBGa_913!BL.6-62 datnd 13- to limrnags larch Dy. Glnoxnl = "
3x_1};=1a : 3', "V V."1'?:a: :;3jr:.::"_:p:do': dntcd 19.10.2005. 13:51', Ravine Patition 1303.3. and 2 and similarly, the Intozlocataxy ' tiled in the avian potitions V' also rcjeccod. Annoxuxo 'N' is the copy . fax: the amen oz ma-1', chonnau. dated 7.3.2006, No.Ca1.12l_52 é
-.31- diumiaainq the twin petition: as intarzlm application filed by the Boing aggriwod by that and»: ' in xiacullanooat appeal. dated 1r.a..2oas in Raving. 2oti'1--,:.}sn mV. 2.!2a'e6'1%j§§ . will an the ozduxs cm 42/oe, zaazoa and.§1=§/Di;'V'%é§;§; L'pgti;§i'bfi§x has tune. I' 2 Ro.123£Jé3:f2:®'t3"; being aggziwocs in Appoal 110.82/'20€3!'>5'V'A'2v'§.3'.2006 in nuviow potitma "" "n*e;f1{2$§6 'iiificziu Application .
mosaics,' iw%.9.:t§%§%A;z3e{;%2eos in sued. A. """ than learned sonic:
patitione: and the respondent matoxiala on zncozd.
'1"9_. to 3:1 Mjow mix for and H9114, lemma senior ctnxnul the petition". The Hunt. of Tokyo was merged with man litanhiahi. Bank. Ltd... u.a.:. H9iH V)lV1VN}lV)l :£0 18003 HQIH VXVLVNHVX :£O i2!fl03 HOIH V)!V_L\-Imxtnl 4" "_mn._' "am _m_____ 1.4.1996 and that mayo: itulf took undo: tho laws or Japan and in can tracts in no disputo about the two banks. Since the Bank cstahlishod plasma at busin§asA:"vgfiu_§:a 1952 in India, mcona:y% FjLk§m11ca¢1as;a filed tr/s :93 at and also baton the with the raquiaito, I two Acts nmxy. the and the Banking 2ogu1ats.Lm':'L%TA the nugiatxnfl " {sf . I31' islucd the corn fig-.-_a_.to§7"" -V . the notifications and therefore than has {with Buzz. 593 of the commits not a case more scc..'a92 at Act any applicable. Rolinnco an sections 37, 56 am 57 ot Liindiulhidonu Act in this context. It further suhuittod that my rant: that than /5% , 149;" ygugynxvx go manor') H-FHH \fllVlVN>iV3¥ -10 'N505 "W" vuvzvnxwu an nmnw unm wmmnumuwu .:n nanrs-s mm... «...~............u.. .... ........._ 'anyway...
21. R110 elaborating the V. contentions tbs learned Main: 19%: V' poticicncx has submitted thgi-Q 'V the merger the business 9! oxiatud :u:iox to 1.4.96 _ 2Ilu£2{#:j'l 'Vl'.V¢VVQh.€'u'$ 'V eatahlinhod by new place of business '¢§_s ai:1ishod and than was gate;-'at£§ng or Tokyo --
ltitaubishi'; we now Place of bus inoanj " f" .v ~ » .:.§xi# i:61i§:o . trade: the <:iJ:cwmt«;ngf#e'uV htho caapuzin Act:
1956 tutu 1.-;o:L:a1'r: or ugplicable to the Tho petitioner bank license fruit :11: RBI to it:-fisinoas of banking since thl your
-the mtg»: tack place between of Tokyo 1:.t:a., and mu Mitsubishi I:t;d.,. all papers related to mugs: were to the an and qupravad for change fix set name of. the patitionor to the "nnnkj-"'--«9£ Tokyb - lt1t.sm1:fl.i Ink 1.1:a., '' v notifier-atian was -insuad I318 42 (8) nu: net: dimncuim that us the an Act was thc_ 'E6i'%. yo m:a., '' the mean "sea; '-1'ol:3"ro*-- Bank 1.1:a.,~ he ifihuaiuzittod that Registrar " by his cnmmurzi antic:-:1' ' E certified that as conamuont:
upan mgr" I.td., am the ..---'u..u.f. 1.4.1996 there way §_ch#fia§ in sun; as tbs Bank of rohyo ~ * «xitsiihism 3 . , .' ' ,._ contra, 31:1 .K.G.naghsv¢m, simian: counsel appeuxing for the "'1i;ua~::l>;'$i:rrr:1nn.t ma contondsd that the issue in the can is in an nauzxaw ceawnaa namely, an . to whothm: thaxo has been as failure on the ;9<~"
_lt'\ I'\£!"|f\'\ i_I£"|ILI \pJ"\I|r-II'!-lhI\l\-I\l ...lf\ l\lf\f\"\ I...I£\II.. «.4... manna: n_n'n..ru_:u.:\:\_r\| Il'\ I\lr|1'\'\ II£'\III |J\I\ulIhlll\!Inl'\l
-37..
part of the potitiomt to comply with 8:13.592 or the cowaniau Act 1956 so am to attract provisions oi' am. 599 of the said, ; has aubmittod that thorn in no n amalgmationfmongnz tack. Vv batman me am of Tokyo Bank Ltd... mu-.£., Hitunbiahi Bank Ltd. .
in India prior at the lIC1'.'§'G1.'c 'j$t<i., was dissolved Bank at
rokyv -~ meuua;.h:_ Agm, cm into existence Bank Ltd"
mu.-.s ;m.%su.1ma in India 1'01: the .fiJ:ut ' 13/8 592 of the mandatory and since in .. there has been non couplimco of the said Act, the xacavaxy are barred W8 599 of the amid 1/ /I .
H9]!-I VNVLVNHVN so 13:10:) Han-I \-nI\1:\-Iumnm An mnn-5 umu Huulwmuuu Jf'\ l\Il'\I\4"\ I "an I u_n-nun;-'.1. s-5;
23. whiz: elahmcatizg his the loarntd aoniar: zzounsel has in the oazlisz part of Ltd... (diaaolving cauvparggl g3c4§: t'm.1:gn¢ '3."__u;iA:Lvt:£'s Bank of Hituubiahi Iatdq ""V£.§{3:intV.:l.r313V_ 'in toms at an emazxgg the Iiiniztxy af finance; Jifittoz dated 22.3.1995 mango: or tho said of Tokyo 1.td.., was di§i§61*v;§§:_v Mitsubishi I.td., baring; tack up the said out by the erstwhile lmnatuxoa-9.1 no as an zosponfint no the copies at A';-opzaanntaticm auhuittod by the v%ieu. approval and grant:
by xiniatzy of Finance Japan According to the loaxnod sonic:
purnzant: to the and Image: in tho *4 «M/%fl_,§.»~C"I"
|...l'\I|..lII...l|I\I|_.U\| Ills Islalvnslnuin Innnunn I_l|l\_llu.Jn|n'm ___.'.'"__,', .1. .'.;-n.p'a~n. | I...0\II...lII...lllIII..ul\I I4-5 I\IJ\t\I'\ |It\I|I you 1996. than nun of the surviving dxangod tn The Bank of Tokyo - Lt¢.. which convinced its: banking' K Indin in t:u.mu at tho said the Eimnaco Kiniatry c§_£_ ncmaoazy pamiuioma V :2». an and an §:..%1;h s..=..m at cont::a::1ct1:;g«~ .; by tho mlrtitimmzs' " ':g éontinuation of its ta uaxgor, than laiztxifid for the xoapondont has effect of merger was 3':~a.f;.Tta.g;§tlA1§ir'v'*****-aiittortnt logs}. antity was the Bank of Tokyo did not auifiéa lugs}. entity and once and to: to exist: as 3. legal entity and an company and thcuta:-0.. tho '...i:o§:itiono.r:'a stand that it «continued its business dospito the mango: was not 4- :
' H9531 VXVLVNHVX :10 13003 H9114 VXVLVNEVY :40 lflflfifi H1-"HI-I \'i\I\~i'E\-Iklfil-r\.I .1:-s aunn--. . nu... . ....... ... entrust. According ea him, till! patitifamz being I bunting eeupany within that ~ 9o<:.591 of the cowanins Act, it ta harm ccup.1:i.ed with tho this said last. Since thy;
under swtion 592 at tho'§§:mu::"ies mt V cwplied with fl tho pzoccodinga fox: iv under section 599, the D31', Bangalaru rightly huld in "
. is:V caontendod on behalf of the petitioner had not material on xncozd to show in! nu! aancticmad scheme or of mags: ef em banks and that k«§i;;a§ %%*;;.¢tton dated 39.3.1995 issued by the an V. mx..: to Annozmxo-13) any iaauod undo: the , imraaiaumthat: 'mm mm! of Tokyo was changing ,9 y unu'.4v.a-5 u ..g1_-
its name upcm. its mango: with llituubinhi Ltd... and it am am: .-.u11sc mt Tokyo ma hum dissolvod V A Hituubiuhi sank Ltd., was "e;z¢ng.aw¢zj :a§"
banking business or the raid. luttnr was and V won 1:: RBI afitiifio by notifiauticn ma bank to ho a nuthoniso on confer xfititionoz to enjoy » upon oxctwhilo the in fuxthox: suhnittod on beha.'g.f_ cf that the potiticner: mtorial to show that 11:
to obtain a license 22 at the Banking Rogulution 1949 from the an to establish and ma buainoaa in India. and that the ' of the petition: that it was merely a ». ufsuccassor to Thu Bank at Tokyo and nntitzlod. to l..l£\lI_I \uJ'\iI»lI\ql1l\I\.-J'\l IA I\I(\.r\-In lI£'\lll I_l'\l\_llI.l'|!\II..l\I II\ I\I!|hl|\l'\ nu-'nu ;..n . .
$ " 1 use than said liumnu of the erstwhile nnnllgiagf Tokyo is wholly unsustainable in potitiomr being entirely distinct," K and Indian um: ontity had provisions of: thl Banning llogulation 'V order man 53' ifiamod senior: cams}. that the cmplimct I thy Banking Roqulutican and that was also reunited in a birth _<}£ and thcrueforo A. a at business in India or Section 592 of the ' respondent has admitted that tho has am at its branch atfioua, inf §1' slit, in India and at that madman . nu-nun I...l'I.ll..lII...llI\II..I'\l lf\ l\ll'\I\"\ Ill'.'\lII I.l\I\...l'IImlLl\I\ul'\l .!.f\ I\lf\.f\"\ E_l¢'\II_l V-l\!\-III-JlI\lI-l'\l _!l'\ I\ll"!.f\"\ l._i£\lll \-d'\lhllIu.l'tI\II.d\l II'\ l\.Il'\1-sfiu gran: I.n.n.:n1..:nn\n...n.n any nu-nan -..-..... ' " I appurinw in the crane title which potitiomr. has acquired pursuant to at the tum naming coupanioa. nut,%%%%iit:%Ai§ submission of the lcumcd tho mapondcnt that outubliahod by the Memo 4:. rm-r saflfiéfl the scam of sewing ceupnniu Act as thy in no longer the provisions at Regulation» Act and ii Companies Act are stated in the Itatumunt against the oxdm: puma mu»: dated 14.5.2002 on u an appeal honors the DEM', No.83/2002 has been filed by ' and tho sum: is pending mu the oxide: panned by D11?--I, mama not attuma finality. 1:: in math»:
2;, H91!-I V)lV.I.VN3V)l £0 RIHOD HSIH V)lV.l.VN8V)i 50 llifloi) 3-I'D]!-I HHHIHMNHV an wanna. . mm. . ._.. I " I sulacnittodthnt 13.33'. fianqnlcxzc was not bound the ministzzatin/ministerial nets on:
kaqistxax as commie and that tho ix has the juxiadictioaz to 2 section 592 at tho coqmiqa ma" ' with e: not intho instant urn xoapomont, position»: baton the _.:2j $; '.24_.;." 1_}396 was to aawly suction 593::-.-3 of regard to &a:'qga"1ii the said row was £i1ca% that the petitions: was o;:'is§in:a'~. ffitifiqn gammy and not as 3 ant" saga). entity which is éfigiticn in law.
in reply. the leutnnd sonic: caunnol " pntitiannx: ham aumittoa that tho mute: of use :5: dated 14.8.1996 shows that the original. one.-Lry continued which is a ./§M:§»«<*"
M cirmnmtnma in favour of the potit1onc:;"'*-,te man that than was no astabliulmaant: place at husimu in India tax: the K 1: in am submitted :1m;""¢he xolianco to auction _.3_9139§f| .m :3f' yv Companiua. me 1956 wh1cIi' :<§1}e»f1n"o$._:i:hs"?o£ % mrgor undu Iud1aa ~;_m_«"i'§ in aupptaxt of this the 95:31: the potitiagwérijau dociaion or the apex " of '1'E€:l'-B811' 35 vs sans Jzoportod in 420051 .1» stated am: the xuapgndaagfi MI' 3 uctian in and that than challango ' Before the Registrar of 5 mt sueconszful in visa or the the Registrar: at eugenics has held section 553 or the said Act has bum . iwlyinq thereby that the petitions:
- gg -
was not e.:ah11un;m its business in man £¢:?§ the first time. ' % u 'rho gaints tau: .cona:Ldo::at:1oa in this _. as follow:-:
, :_ _
1.. The 1:o1uvant:- or v% I 1 ti'!!! imtmt cuq. __
2.. The offset: of 'Qt:-ff.» at Tokyo;
with who am: Q 1 1 1
3. ran given by naaarvo of * Banking Roqmations 1u'.'t, Act, 1956 suh u§'quant.V I at bank anxhaoqucnt I fipliad ostablisluuont of In . plfiés v*§¢" i:fiaimss within that meaning at s 592 oi! tho cmuniu Act or an ultuntion in the num oi "y:'§t:lt:iomm: as per suction 593 0: the ccurpaniu Act? ' 1"?
5. has thu procoodjngn filed by potitiann: honed under Section thocauzpanioaact?
27. scion procoodim noconary at this stag:
in tha inseam: canny é " V oz Hangar' . Par contra, __j..t of tho zeupondenta Indian Law of Range: which is instant: case in order to» frind :;to «both»: the cstahliahnnnt at n fiuimu as per section 592 of tho Act has occurzrnd by virtue of tho VT or mm mm: of Tokyo Ltd... with 'rho 4 <. uI4:£itsuhiah:£ Bank M-.d., and that the Japan":
law of memo: is not mplicoblo to the fame and cirotmeoa at tho instant case also roliad man csortoin dociaionofii' ofifoci: of moms: .
29. Lounod ooni§:£%-.._a0unB, gm.
respondent has xenon undo:
saw. 391 and soc. Act, can such ax.' w(v'.:¢u1:t: in tho cans of vs mama mam *2-30; an assay mmm the uhothnm on anuzicon ochoinis----;--a£ amalgamation sanctioned by soctions 391 and 394 ofi tho 1956 resulted in tho creation &_ ":.'1ow ontxty no on to attract tho oo§oo;sr:@x¢;i,a1ons at soetian 14(1):»: at me Bolhi nan: control me. 1959 which done with eviction on tho ground. or auhwlotting. The 4 Em InI4\J\!|\ roasts: I.l\I\.lI\.lLI\!I.l\I II\ l\ll\I\"'\ l.I£\II flexible Bupxum count, aftux x:o:En.r:zinqrf'*-- t:o awn-31 pzoeadnnts, cpinnd that won V. is an ondnz of Q ccmzt: sanctioning of umulganutioa -undo:
the cement-as Act whs::au¥I'd§2 rights of tenalncy 'V Trans taro: 'got _> " - ._ in A bocamo the propuzrty of comany, it weuld make; as the nvp11ca1u11zi.:} A mm :1» 5.; conc¢:nq:!,m'JV"aV§{gf,_v not make' guy oatauptioii» lessee who may have adopta;1_Vau¢h~ "iof action in ozdu: to la:-I. Accox.-dingxy, 1:113 {upm1d on em g.-com: that the (Insane) though had managed thi;~.v:__A:Endian company without: obtaining any consent from the landlord has parted . tho xmunalion of the premium in diaputo favour or the Indian cfiany and it wan tho acid company which was in oxclusivo pcaaeasiun at an premiums and thereby it was 1ia§;§:V. auction in view at Sactian um said Act.
30. In the n£oxtsu.1vdvL{ivac1s.vie¢;;
was made ta anathoxv t:g¢iaién"%.I6;f"'tpn nmdczcd in than can V' a f innate {m§.%icV:_m'r, 1991 ac my on which % some: counsel for zalianella when two commits into me. the Tzansfcxtox:
1'5?'!I¢i;"ii:;#ontity as 11: «Mon to have " fioww-er, their xupoativo xiggfis '1--j3.A.i:;abi1it10sI am determined undue the of unlgmation but the cozpoxuto at than 'Immature: camnny causes ta gain: with ammo; from the date the amalgamatian 15 man ottsetivo. In this cease', . 4 if .._..n....u nu. I111-u.n\!\ nuhnl uuwlwnluwu _.Ir\ nxnrs-\ uni:
.. 51 ..
while doalinw with Last of hunlgumation. V.-the u unn_un_:nn:u..:-u nix l\ni\l"l\"§ l_I£\!' I4Ion'b1-a supra» count has observed as .4 "5. Generally. whom may is involved in .. .
the right: of the sha;c'iho1d£u:a_.. creditors no varied. lit ruconatmccion O1.' roo:§*an:§.;"nt1£:s;'--.<_>: "
schomo at a.3:z:__a!§Il;i-'~_ox':t. A In mulgamation. two <.w;"'~no:a' "
are fused inta om or taking wag tnnrbhazir.
1!.oconatt11¢:t:ian.._ 'M: T amiamuation has
2. 3 '.-s.«- 31.35', - .=_r.~. '-."' '"*'*. Th! amalgamation 11. I =.b191:x3.itmg "9: or man oxiating 3' unfiangexigxga into one un:1ax:1:a;'l:ii§q,V 7t1$o'"' sharihsrldnts oz much became aubutanfi:._£a11§" ._ "chaA_ vahatbholderu in
1.a.._1_:¢5 gum-y on tho hv1ond6dT.L»v_vund:na:ts!;inga. Tiara E ho .u'i--.ti;9.'1r:' Q the ttanafieg c_:_.»_t_Z_'_;3:1e9 cg 'mm:i~~..v.nriert:uk@s to 9. new saggy E 6.1: Ftha txansfot or one has also bun plnsod on in x/s.c-warm. ammo mm 1.159.. vs n.a.mamn (am. 1986 whozuin can account: of 9. actual of ganctiaand by the High court xundu: Sections 391 and 394 of the commie:
..\JUl(i VF l\f"|I\lVIr\lr1I\r1 |u L-\llJI\I Van:
act, all pxaptxtin, rights mat poua1:u,T--"=.sT>£ ovary dascziptian including V. hold. by Hla.Gonoa':a1. name and fiPP¥§lé§cq:fi m.-d., head been urged 'V Radio and nnginaazing «it hold that the trnns£ono:"'*v§é1mnfiy~-- 'V in existence in had affaccd itself for and than "In tenant in xnspoct: that it was than hm tranataxxad firomiana in favour of the _ .:1:afi"£n_:1".eI.a':-- and therefore, undo: m'{ii}'('a}"'ot Andhra Prmdnsh Building: ..CV1:.§§B';I V§' and Eviction) Control act, c5ai1,4:§ti<::i:L:*a;au mtdnrod on the ground at L ~ vafmufihéri zed I-uhl¢ttim-
32. Thu othu: decision relied upon by the learned annicr: counsel for the respondent .........._...u-._nu um uunrsn Lu:-ul l\fl'Il\l 'l''ItI'll\l''l : an n .
wash in in thy awe of RAXQFABBLI ChPI'1'AI£ . tam us"-;n.m. II I 1'..'1'I>., vs snmmms mm nxczamcm :%5'%%'€§i%. mam mt: morz.-am mm 2003 st: 299) said mu, mmmnanx szcumitms. Am-n .i,f% AL V' with Bananas: aaemu. _ z f£»TI5§_--; ~ and - the facts and of e1;§%¢;$o, rm npox com: mm th£tA.nNn§dr than above two " 'ai; stood a right to operate at the stock axchngkfijv " iézash zogiatgation fats» had to be made and that ufimg cums. mama fiat to the benefit at chpaaitod narliex: by
1.-rm which got mxgaa lam ~ man-rs mp. , Tltmuh that luuxnad union c:ounaa1 mo 'roupe&nt has cited the chem :OUK'I UP RMKNHEHRM filkvfl \4\IUl\_I.'.Jl" tv-uuvu-'ur-uu-u uuwu \.'Iuv\JI\: vs L...\JI.Jl(E vr |\nnnnn--u..--. ... nun decisions, the aunt cannot be made applicghh to the tact: and cixcmatanaas or the hand as they no the decisions ::and¢:.:$§d, soctiana 391 and 394 of which deal. with Indian mu whnmcs, 'V V hag ta he eansid¢1:#t1« :l.a:zAV"'i:1**.'éIIa §'::oc£ 'b£'A"iaongox undur the Japanese : ftgpiafiuxt of the toms and agzaamnt.
:aja';'%'T 2;]-, "as 'zq:§tt1§i&""V:;>osition that all mttetfi. " . status at foxciqn cuxppgatflimgi' cleteminnd by zuferonca **** at that corporation. Tho law regard to status oi foxeign cf based on Bxaqliah Law and English axe qnnarally followed. In tzhv can k'«j'%%¢:J%Wmcmx9 s In via ans mmnxm (P) L'I.'D., Mm (reported in zoos :5) sec 4653 en. Hon"h1un Supromo court has alga opined that l'lLl\l ma. |\.Ir\I'\"'\ ucuu wuwn-nmat-I\£ -l("| IMHO') H91 OF KARNAIAKA fléwfl \..|.JUIu_. yr nnnsu-un:u--u 1 uvu muwanrun "cautious in to ths status of u conpoxntipn are to he docidod acconding to the domicile on ineorponation subject aaccoptionu including the excvéfitiéasg; V'
- public: policy.
corporation is a cmaatad by law, it «man :l.n. decdfidamo with law of its if it in a conpozgtfifis, by virtno of 1:11: V"':'v:nc£:»r,pox:atId and it is t¢""£hi§ iék §;§né "tfiat :11 qpoations cunmfififi dissolution «of the ¢orp;2;at§4""'a_§:a.?;i1aA"v.ni:*in rsforrod union 1: is "~1;o policy." The Howhlo has rafiuzzed to various the I-Emma at Lord: in this regard.
"alto to Cheshire and lilo-:th'a Private :"'V'.A$nt: §'nmt1ona1 Lane :12" edition, pg. 174), the portion of which is extracted as ro11aua: figfim/W ma «A nun-.4-us-5 an-\II| I.J\I\-III:-!i\l\.l|z~l\! an I)lnt"1'} "Quutiana concerning the status of a. hear of person: associated, toguthnr to: some ontc::;:z:1;sANe;»"'-.Lj'«.T. .. question whether it posus's__iws-_ " -- ' the attribute of pcxuammlity, aunt « grinaifiie ..-. nu-u.n.-\ nzuu wuwiwkiuflv .|n I3i{"|f\""} I-I'.-"IE be governed by the =._Vaame,11a:;' qwanu the Vutnt11_a"~_V_ of the V individual, irhyu tho-,_lme dcmicil.
axhait-3 01' no doubt; it wt .::_'uau§n on tho. nf tho in:1ivid:ua1~. _ ;_Ev"e1-.*;'= _ paraon, natural and -a;rtfif:':§;c1.gi1.§_' u . n'<_;qui run at birth :ard¢m1ci'1_ of fiwrtiqin by ap;s3:a_t;i.nna_ oz Inf' the can
933.. _..V_1aag':Lf.=$,1n.aj;ajj-- natfihal pozson iii: _..ig " the *--s>aE-- his finthor. T.i;n. '"t1;_oV _<'.:a;a'a~ pf the jnriatic "psx:so:i;'f"it~. '-is cornntzy in
- ._'eehi'i:::e.._»£tp'ia""vhe1::1, L3... in which . it :£u=3.~:n:t:9tp9.$;atod. If it in n _co:pt2zn",ti:::i.;. it can be so only the law by which it wai~._inco:p¢::atod. sit in tn aghia alonn that all _ quzostiouas aonccnning tho
-é.z:u"¢1:ion and dissolution or than " ~ "_'v_v..1:vag;r:;)oru1:¢ status are xofiuzrod."
35.. " the aforesaid cue, thy Haan"b1e was eanaidoring as to whether: a . by um Technip had acquired cantxzol SRAKM: thxorngh; catlexip in npril, 2000 as:
LQUKI Kl!" I\.r-uu\.r-uruu-. -- - Kt"
/ /' cud: nu : .
-. 5'] ..
in July. 2001. In thc said can both Tnchnip and coflcxip sure incozpomtad in mnrununssavna .I('\ I)lnf\"\ I-l¢\| «mum sum: was the tim xogiutfigtogfii incomoratod in India. 1:n"" eh; V' certain public often: made lay chnllnnged and the queation flhithtx the imuqnod txuuagtiiqn judged mccaoxding to Reach $ :5: "
dnturdzation an to was hold :5 ha "'a qgjéititéighfiv is a question 915 faxztix'-of d ::1::§.'1z.1<i" an hu bun stated in' _C§hI§h.1§:e. S 1'§6xth' 3 Private Intoxmtivénal cl?" AA . 'ro daacribo I it {famifi of Etc: 1: no doubt in Fizhnt the applicable law mat' acaordinq tea tho widunco
---.. that: can but no doubt that is at bottom 0. quoution of OF KARNAIAISR. l"'IH.:I'|1 \.\JUK,!I l\.l"|!\l'¢r1|l"'lI\l*| suuu \.a\.I\11\i so. boon recognised by tho coasts. an-5 u\canaI\-on. | 13" I
36. mo Han'b1o snpmm K hmewoz, much a diatinctian by aIt:e'i;"'?.:.::z1gjV'_ _ this annual rule status by the nu:
when tho ism: r:n1at:4nc"'*vL.:1.;:é:a. . 3 of 'V obligation ox: righfgg' :I.n_ an ache: country is raised man than which is gavornod cmxntzy. In can fif Grace: and Athens, s.A.AV.*a?la !7Eei;:1i.pi3 an an 608, House of "" "said can an, annex bank. had bonds to persons in 'G'.K. The turd. by the other bank, but issuing bank and quumtnod bank worn sands: the Greek Law. Thu G:-out V. was aubauxuently d and I. new company was ham. 'rho handholdu: mod the rum £1,/« 'Rut \..\J|..H\l Va I\-l'"II\I'l"1li'"€§\.l""l nan.»-us \..\.cu.uu_s< -an su--u-.'---u---uu1 a. 'nu... u.--uuu--1u--uu-1 .- caumarxy puking entrant". It was held by,-'1:_h¢ Hausa or Lands that the utatus at tho . 2 scale: he dscidaa 'acceding to the douclciln of the original 'V according to sun: Law, I succcadnd to the assets 'V V gnarent or capany. . ._£§ou;§s£§"* at: Lord:
held that thc c1u.i.mHu£_ b§§£§.'.;~1i§lds: was to he conaidngzacfl V' ggsvfixod by the smuuh mu %§eauj%-%kx;§1c1% thgtk the uvidcncc as the :Eagr:"1:'"":'s£ :vft;l§;7fE:§mjt. Hbiéatifixim in Grace: um thux§£o:a:oV has the debt in questioxg. _ as debt and thu wamaga:£m%%:te. M; '1.*:,*1:a quantum and the debt <>£ ' all cwoxud by English Law givo arise: to the Greek jVfit;€x*atori1szln:'_;'1~ V Pqmlying to about principle in A juamamont. the Kowhlo Sugarcane court that the relationship of Tochnip to A»»c,4é:1'1axip urhnthcr am at control €31' not, was '/9} Maintenan-
really a questim. of their status and the applicable mm tzhexefaxe the Law V. domicile, nmely. Franc-.11 law.
37. ms Apex ecu:-t_ with the peace: be diaroqiifia Ehe 'V foreign law which great circurmpection ma V"_g _"_£oreiqn law only becauga' than Indian statute V. basis of private 1nta::x:§Lt'io§{g;;; i-.:%a::{e_' undiaputzedly aubucfibea %V Ken: Sendur vs Barbe:
sinqgta mm; kiéu sc 12:44. In this it' to quote tram Kuwait 'vi'§:s:~: r'x_$.:>za.t;i.on vs Ixaqi Airway: co. :#ia;_sf2a92e3f%e. ':3 mm. 209 cm) as zzouowa:
lam: or.' the other cuuntry may " hive adopted solutions. or even __ibuic principles, zejectud by the law at town cauntzy. inane diffaruacos do not in thaaaelvu furnish taxman day the farm country should decline to qpply the foreign law". on the ccntraxy the existence 9/9 ...-n...-. - nan. \..n\n..rn...:nI\ILnI :r'\ I\iI"|I\"\ Llfllil q-'-
\4\J\l'I\1 V-ll I\r"v.I\nw«-1;:-nnurw nu of difforanu is the vezy mum it may be appropriate for the fOZ13'm '-. T court to have recoursa to rcmign law. It tho laws or _ countries more uniform than H11-1__ bu, ' no "amine: at lac-aisf» supplied). ' Further, undo:
act, 1372, courts 1:Ake j agikmittud position into " to few:
am Oilrlnicm cg. _ relevant foreign the instant case. 1 2
38. * pxamisa, it is __.Vport1;§ia'::t 1:"u.._V Vroi:5«ux: to an application an atztidavii: filed on bond: of time: pursuant to out under dated .;1.3 ;"z¢G:3 which we had directed the to pzednnce tha aqremncnt of merger The Bank-of Tokyo m:d., and Mitsubishi VT Ltd. in order to tine! out the nature and :u£:Ea<':1: of nurse: in the instant can in the 5% context: cf Jay-than law of mzqox. The petition: has placed on record Garoammt which is in Jlitlnnsc ,, English tzanulntiun of the V op-inian at tho Japaneag to the effect of no:ge:"'a€£<1or an 'V also curtain utact:m}~n.;:y fic'>£V"'JIijpanaso law in thl $ 'g the legal stitch at is also an cuxticicaézffi that than lrxgligifi {:1 manger sq:-«moat undo $031: of hill knowledge and 59 tfie of the manger 1:::t:~~. '''' is in Japan" languaqo; A English trnnulation at the V. indicatoa that Tho Bank at .v:_ Ltd., inferred to as 'A' in the and mu llitauhiahi Bank 1.td., . "= __£_i:¢£ex::ed ta an 'I!' in the aqxaumont) had antorod intn a. manger agxumnt on 19.5.1993 351/ n1sn_:\u I\Il|hJ'\F§». I l.r'\iE \u\J\Ji\I 9': I\.u'-%u1.r1aru\r-n nu um-run-3a' and no pox: Axticln 1 cf thu said ngz:ouununtV.-'tho merger: was on an oqaal basin, that as an nattox of procoduxa 'A' with 'B' . The oizhnx rolovcdif "&Ltt§,clq§§ :v V mango: agnamont are N Art: iclo 2 B an a piztyjshall chnufio it: track s;¢:£"*V«t2wj~%.;lcto at name: {the -1"1m',::§:s.::_..A_T'I!'_a-1t:¢sf') to xabauhiki 'I'9i;_yo'v_!Iit='i§ub1ah.i Gint¢.'«.._V The 1. carpézjat; in Eng;i.ul:f" _ be 3 Bank of Ltd.
__!§Vnx:Izaj.'::av:';!,?:l:u::_' 'en ahgll include such with such aamud' 1:1'.-ad!' b&'.!'{ta_x:~ marge: with A. mm 9 n I2at:u '"'u"nu11***" he 1"' =,:.E96;_ haoumur.
<:ana11t?t*;i.6ix7'b9_f:ngkiiun A and B an jamcunity apniagm in connoction procoanzos tor: the 1.3 aucceod to all as an : . ""wA.tata, liabilitial, rights and 'ahligatiarm (including mt: not 5%"
.. .
ia .z...u of my linitod to the right: and olziigationa undo: tht convertible hmd issued by A) misting an the lung: Date based on A':
ducal: and other accounting :13 of 31" Maw. 1995 and "
agxiuto additions to"
mdmtiona from the lllflfi. ' Ihto.
human that date t:he " n K
2..1'ha conversion pz1s: § VI'a»_}'VV.»9f mzxvuntibla intend. It shall. ho adjustod tn the ratio of _ ttha can¢dona€3-'°'§- " I ..
3.1:: 3, with «pants aI:mumint:;a"= _ .oha_11 indicate "i:r_1,_H1..v'=.:at saute 11ah;i;itiies_"»§acuzn1ng during g-aJ:it:-:.':~ ":;¢w::IgnencVinag 1 531.1. «199«5'a:m1"-sgiding on the data .immdi;taI1.3f"_;iz:s<: o§31nq than norm:
(1m«19youn'.ga of. tiguaj Morgen Date as ; Vita anwloyoiaa their patina cc! 5 w_1t;- being added to we 5 =.AplI!::A1t?€§;VL.v,o.ETL..5fi'1o3fmo1!: by B. All "-«._':=pthaw: _w.-si:t@3xs in aspect: of ; *'»:.'::n.d:m_a11t: of Na uwloyocu shall. i ' éqtuminud upon conaultatiun and B. i }3"'/ e 1'» 'r|lr'II --1 - nn 1 1 article 16 on and after the llafifiuz: Data; shall nuns.-an A': head ottica brmch offices as B': officnu. ' Axticlc 20 This hgrunmnt ahilffi, to effect 1: thn fi?P¥awa1a= ¢£._tna respective: nhaxuho._'L__d¢;a-'pf A 3% at the qéngxul "mi¢9i:$_.n§s of sharoholdoml _ to: in Azticlu 8 are n9t' '6§>tl::_Kt1l.h;d ':9: if the ug:;smva;.1'n- -- of gwqtmontu authogitgiaa 'flaw or or:d_1.:_1ea:nci§j:%g:~_ .a.1.$a_ apt
39. produced an opinion Q3. 1 ll)! firm at rakyo, A%'es€f1§ct of merger undo:
legal. opinion. is relevant attracts of thy an it oxistod in tho you I':-nun was mauled, but it was pointed _&V1;_ :t}ho Bar: that the law relating to merge:
%k7g§g §hn sumo uvun in tho gnu: 1995 uhan the l\lI I \ul%|-ll'! 'Y! 'méézgaa: at the two banking caupanioa in the ..iJUi\l SJ!' l\P\I\lIl"'\ll"Il\r1 us \urVl'\'I\I . 'ma eqagoliditian among the financial L"§¢;*sL£.1;it:1:*:1ona shall. became in otztnct iutmi: can too}: affect. It would he uuefjulj ; to extract the English translation of a1:t:i.c1as-po1-1:a.1ning to anger, = '° and zoexganiantion of 5' undo: than Jmnnaao Luv.
A1:1$i¢10'5 Bnxauzaph 1. _4 mux:¢01'.": csonaoli-dmzion " « ' or} L %Vj.>2o<n:gAa'i:1zation under this Vnhjali income e£fcc1:.i.w witiixum: " an app::ov.§21'*;.__'.'~o£=:_ itrio "!!in:L§te: at ~ V V %%%% ' .f5é*£'-'4!5|Ir~'*=i!1 inatitutiun ohftai " _c:py:ova_.1'" to: the xniuegaxg. ._ * or rcozzqanisut ian ' -- .p1z.:n1&vIV!§.t ' ~ _ ' t§*- .. . ' the Paragraph 1 of t:'h,1.uva:.'tiAcl9"' »L.uhn11 be deemed to but 6htaix5aA!"v_ap*prova1 and ligczsnaa fit; umo1'1q.__oth¢vn:a, for thu bmnkimv-.%.huuine§s unrfiuz': Particle 4, Paz:.1mg:qs1;_"l_ c:s~t._t:'hn Banking Lat, Article "-1, 2;uwm,pnTL%1%% or the Long- Taim Credit" Aztialo 4, Puxfnvsaph 1' pi tho' gfoxoign Exchange ruraszxaph 5. ' V ~ «A % L % 3t§*: i¢.é1.a fir 1% % % merger: or ~ the registration of change :11:-noun; I I:I'\II mt xuulting firm merge: in cmmzcial 2991:": of thn;
auzvivi-ng financial 1nntitutio:}A..__¢!:."5;; _ than mgistzatien at incorporation of that new financial inntitutiafu. 1-vaulting from thn t:o§I:I§{311di'iitZi.ii3£!1_" .12': 1:!» commercial ragistior "n*.:A_ s_«ha._t._ cf the principal o£f3.c£{"ziqiizst-q1:s&.."*-~..é or aehorwiao the principal p1g£:a'*<>f business or institution.
Puwxaph 2. "1.
institution survived tho xauxqcz 01: the nwlawmwrmotmtod financial »1n.at,'.';i:iit=j;t::1 "t_hz-:0uo3}1' the canaolidafiggn ashe__..I.3; t:a":§-- .. grid: and _«_'_:I:ig:21_1:i!I__ obligations and J:ia1a;iVIbLiVt:fi,aa"'V.T'i'.'-$315 ..f?s:he: financial 1na1:§,1:u!;$;o:2 V&bI's9:b€d..._ thzouqh the morgdrz'. .V
-£0. ~1:§1"e V 01! that image: ngxoamggt'; zit héfifina clear that the merger ¢>f tmf ffckyo m:a., with the Mitsubishi taken place under that the Japanese Lam and that -nth: of marge: occurred' in Japan. "disc: alarm: to not: that though The m:a., nan ostablislud business India lines {:93 the <9/kw car"
5 Lllfliu H\l\r!iH'x!\lH\1 ..|n nann-\ unlu \-l\l\-J'I\J\I\II-l'\I _1r\ l\!!\I|\"\ an.-nu s..nn..u;.muu_... .
C " Q ltitsuhishi Bank Ltd... had no place of businisa in India nave:-thalua, utter that mozgp:_:_"""A« into at!»-ct in Japan, the continuod its huaincas in in the cantaxt: at n.1b:t:_i<:1:é~.. '1. 6 aagractnont oxtrmtcd ii:
of.' outablisbzunt o£ ~.__a %§:%4%»u;1n.a. to:
the fin: time in of than buainoaay 1n the your 1952 .
411;. Aj_'jV.:§£§rfiirw tn» the Vatican pzov.t_aiona *:3:§ the agzeemtnt as also the lat merger. consolidation of fimmcial institution:
t::§:'L::}p£:<rviuions 91' the Jagaanosn Law than m.tton1~§'7~ in his opinion has opined that, "B marge: under the Japanese Law is dofinod as the legal t3:o.nuac:t:ion baud upon the mayor ccntxaczt by and smug two ox next camanias whmcaby all the zightza and obligations of a
2 K .///y Irx I\Ir\I's"\ m¢\u_| wuwaumnwu Jr! nxnnfi ungu \-nl\-lI\fl\l}l\-nl 4n !)tfl('I"'l N!-'HM HEIVIUN}-lH)I -If') §)5fll"')."') H4513- : |...l\lI_lII...I| I\IL.nI I\JIl \i\J\II\l 'all I\l"\I\I'f1Il'll\.l"1 i%"§1\7l'l \.u\lIJl\I HP! I\f"II\i vrllrwlnrw : II party or patio: not suzvivinq shall be cotupzahanaively succeeded to by apczation at law (Atrial: 2, nnbpax-agrcph 27, Article 'MB of current Cowt-my Law in 2007 {"2001 "
lam)".
strictly speaking than " " n 3 types of mngaza;
~21) typical mugs:
single oxiv:$:1nsjV "
aurv-has thrmmgh % "z§a::'§'--_or: aftor txunafe:
uuaicmnnt o1:'""a1..l 'thy .1:.ighta and g:£2;l.1f'gat;!,u::,e:...~' by aw~r¢tio%i%%c»f% law. am, % £2) luau " :. 1;:V':::.vu:v>5sa.sa.cti:r>11 {be _ ' 'cgitcgcri :06 as an 'v:.fan-;saa1ir;fii.a:;i'a;:"-.__Whsroby a. new V in} 3:6 .. __ 1;; incexpozatod to tax: aim: '@211 the rights and "~ ::u':s3.'iq£.tiau:na or tho ::a1:t:ioI"r- to the consolidation. can, the legal status «¢;2E__ tyhb naming in all ansumd by ,4!" ' tzumfozoo conaany by '= qf;»hrat.i.an or law. The legal "_ 'transaction batsman 'rm Bank or Tokyu Ltd. and the Mitsubishi Bank Limited in cutuguzriaod as the mtgax with 'ma ltitauhiuhi as 5 transfer" castaway taking over the legal status of Thin Sank of Tokyo as the Tranazanor company. Upon than merger, the J. Cm aunivim hank changed its corporate nme an 'Tho Bank of Tokyo - Kitsuhiahi I.td.," E3 xatzlaat the merger: and the cgtg 53; g 9. Q_gox:gte=f cxistomza rat' The Bank or Tafi suczh. change in the ca:po.:-.,aLta..T"~vL."*~% * amt however, in not a _ "
rcquirmmt. but b¢m<.'.._up¢'_:n Nth; "
buainua judglmont. j;
mndlzlining by us) "
-rm pr:aivis5..{1n!V. 200':
camera! but -1:e£sav'1::'ad._"*t§:a jabcrn have .-nat; t:;.1.19" legal nat:1§x$.._V i.:_l.'1o:. wirgd'2:jj~.:bg£:bro such atqztwitii; ~. 'ms $.e.*.j_ea. Vhiroin is a;5p1_.£1¢'ii2;.&. V' mérgax between flank The Bunk ..:i*r¢k§%:is 1595'. tutu: the u;mxga;3:~~.. -taking-aver 01! 4.51.1 1:he'~.x:Lgh:a~ and obligations at firmfiiotor unread comanar txrausafaraa company, the " u.apvp1is;VM:3.ov11 fox: the change with the cc£u%rWrc1ul twist»: of the .t::;:-ixzsntaxna «mi 15 to ho uimltannously to "=;m_hlji"cixo the merger. The legal ...t¢}g:iity is that a legal status am I plaintift in cthor:
'~ _ ':.apaz:at5.c.-ans at 'man Bank' at Tokyo had been all taken war by Thu Bank of Tokyo -- Mitsubishi (currently, than mm: or Tokyo -- Hitauhinhi UIJ Iatdq). 293 mo :1. 1 1 all the £9;-1=.i..n% -ntitr oquallv 01 tho Enevious tzanataxaa aging and 'VLJUKI Ur Iv-\I\nr-unuu-n a: nu." - --.v..-.._. the ofuxnncc t dinsoluti of tm gunk of 'M310 is in rulutslcan * ta tho fact that an all assets'.
- ttmnfazzud 1: . _ remains an wants in tnnnatemx 93:221. tag. V mg daticn at «mats o£T.'Th,e__v Bank at Togo, haéanao gr all ' :1 111:: " . ahligatzionni '?-'L . 51?» '-'''''°§" ' thc Bank "at 'toiydwfiitanhishi (undu:}.ining'« }ayj}unr--3_ 2 " ' 42 .. on the o<:zx1n:1§i:;t*at:i:.§uffo« :::f:AgV Banks the at:t:o:r:va'u':r""is .:V_:'e:1:};;c.$.datoa thnt the luv ~ nth; a3a:i£§a:. consolidation and V' 153% "financial institutions (Bank applicable to the marge:
nan: of Tokyo and The llitauhishi " 19-55 and at that time much luv "'L:";:sg'§;£:ad tho patina to the usage: to obtain ' of the "mutate: of Einunco {Article 6, paragraph 1.) and that in the instant came ....._.........._.-u I4-\ aunn-u :..:n|u wuwluunwu ..:n tuna": Lil.-1| 'av-up-.
- n 1 ouch an approval for tho aorqoz had tokon. 'nu opinion rurthor otctoo 2 tho hnoinooo and oporotiociiiiioi Tokyo including ouch '1ioo;iooo«. all ouoooodod to by Iitouhiohi Ltd... by the Bank of Tokyo to by Tho Int ot tzanatouo party. zofoztod to '<3-ff ' 'V V the liniatry at rinonco on tho wprorol of the nogqoz xiniatoz of tinonco, ***** Bonk through tho hnoinou n7 tho old huoinooaoo 'rho loyal opinion oonoludoo no 'conclusion:
Undo: Jqonooo lat road with Juzticlo 16 oz! tho Io:-go: LJ\It_1lI..J|l'|lLl'\I I6 Illfifilfi II%II
-uwu |-a\J'\.ll'\l \II I\l"1I\II!'Inr1I\r-I In .13..
agxumunt, tha huaincsu carried on by the Bank of Tokyo in India. and othox jurisdiction: continued in the tom of muqod- untity md no new plccj" ' or. business maid in al.1¢_§.'"~t,¢.':I:'~., . have men astah1ish~*aV"'"'««. offices of the Bank, cgf ucxldwidc oantintlad 't-._¢"*.bo tho". 2 V otzficc at the at 'figsiyo tho ltitnuhishi continuing tx:nnafv'§s:Ia.V uutity E buaincau astamiahusd. 'in foreign jurisdictions 9i:?.1u_._ of Tokyo Ju 1.z:.~._J'ljM.ta. 'v':ou1[d" be tmtmxas no mm or izmsiinws'. at 'mink oi Toliyof ' ._t:h'a{jj -- ant: ity of _e.:E'*f and the In othox: words, mango: hatwoon 1110 Bank __9.f Tokgffié and Thigwivisitvfinubishi Bank m:d., all aunts licaxmoa, rights and ohliggafiionnf of The flank of Tckyo entity in. The Bank of : and the business and office: continued in than Bank of The I.td., on A comnidoxuticm of the :o1iv*$fi:A.te:ma of the merge: agreement and the _..a nusaun-urn zuplnli \vu\--u--
.. 74 -
ralwant Jeanne Int, in our View no mwfizgntity cam into eatiutmmn by vixtuo of tho two banks in the instant came. :3: is nacnauery to consider tit; as wall. as tho stunt at :-:'m_ ap1'$:dv31sv'v:'é:;..§§nctia:i:s gmmtod to the putzltionar: RE-I undo: the xupeetivo Acts. -
43. -mo T 1934 um:
act, 1934: 1.: ma Reserve Bank of India 't'§~~::Vtéct:a':§monotuy stability in India a:§t:._A __ lggxato the currency and czwdit B1!Btx:E1_ <$f The an is thus the It tixxgtitntion or the country, the _ emzmntcd with the supozvisozy banking. conferred with the binding direction having statutory the zlntateat of public in general and so 'fir.-event dutaniaratian in banking attairu and pzopnx: man-aqumont of banking unmade:
gonorally. It 1.: also been held that than 331 is A .5 us-Anna I Ian: I 1..r\l\.4'I'eull.l\!\d\l _ll"| E\If'I('I'"i LICXE1 I vs I Inonntnzy regulate: and onunciatcs the "pulley at the ccuntry and acts, inter: Alia, provisions of the 331 Act and Banking which are couprahenaivc pzovitidna '_ ta': xogulnto banking business Doliticu. Thextfoxlp tlit pzoviuians at tho 4:: they relate to the bankilw 4' (0) of section 2 at it hank" ta man as bank 8;-mad Schodulo of the said Mt '''' cash reserves oi' 3ChD¢ll1Ud:z"b#I'IkVI trith that knows Bank af India! of clause of [63 of finction it shall: by notification in "_j;India.. direct tho inclusion in the at any bank. not alroady so includod attics on tho huaimaa of banking in India to certain to and conditions and sub- . (<2) of clans: 6 at' auction 42 pertains to the of a. notification in thal Gazette at Indian J,-*"
'-1"f-
with regard to alteration in the dea<:1:ipeion,"":§,n the Schodulu whenever any schmlad bank 11:: L um. 'rho aoeti.-on it 301: max» batman inclusion of 1 mm oppoaod to altaratian in V'
44. A pamaujggz the known Bank of vAA.'3};Q_iicnteu that the nuns changod as The Bank Limited gs pan:
the s§':'.":"V.."«'I"i(6) (:2) . %%j'4':=-,¢, act, 1949 * (3.1. :v4id.%:L;g1nnl1y called The Banking is an Act to masclidato .. 11¢: relating to banking. The or the Banking Regulation Act as than objects and reasons are an L» r' '.w,..»«""
-17'
-A cowmhouivu dufinition of "'hanking" no In to bring within Ll\il_llI.Jh iwa\_l\! Ilx I\lf\I\"'| I I£\II the scam at tho. loqialation institutions which zocoivs ' ,-\.;\us in deposits zupayahlu on dmumi or othsmiu. for -
investment. -1' . "
-Inclusion in thy: Cegspa } legislation cf Banka._ 'i;1¢<>tpqrmtud "
on zogiatorod atitaido jthi pnavincoa at India.
-Introdnctiam aystom o£'--1:lcI531siua 'eff and their
-Praaxigation 'a£'~Ia ._ I"lp§c$.¢1 turn or 'uenfoxxinq of "ea, ncavpzva Bank to call fax: p4¢::ioéJ ;ag1v'rst:;nnn. the hooks and ..«.{l.c<'29untI'I' pf 1 bank by the Rcnaxve 'Q .....
the central Gcwetnment . "to action against Banks their affairs in «II.
manger dotzimontal to the interest:
' .. oi'-.'~ the dnpolitoza.
46. clams: (:2) of section 5 at the Act:
VV' -.__' ' .H§lo:E1nnu --'b-nnk:§.ng can:-um" to be any company which transact: 1:!» business or burning in uaus\,J-..s\ :
.. 13 ..
India. and undo: clause {0} of suction 5;. and oacpx.-cantons used in than said Act V. aonnoa ma doflnod in the CaIpan1¢§"bié:t.jV'_ Q 312.11 mm was mmtngs 1:au;p§ ¢:i:'i§@.1'.y_ . L ta than in tho Comaa:!.au of cm amid ac: pzwidd mm» ' up k eepital and m1¢rv§g{.. with paid up capital §1a§§~§ga md aazthnrisad '9 act:!.an 22 or than said of banking ceapargiiii pertains to» :oatxi;:t1@n§ fit new and transfer of cxiatififi <'}£ ""}iuaineun. Eartha: Sure.-...11 Regulation Act 1949 an banking' cotmnny inooxpcatntcd shall. emerges or cazxyon "'~»-*4._'__"-bnminétaé in India unions it comlies with the at minimum paid up capital and h '=--' ;_:_éauxv¢:: apucified in that auction and also xoopa dapoait with the RBI oithozr in cash on 25/ ....-..-. an-nu |.t\II.:II.l'AI\1'I.al'\l |r\ nunn-\ u:-nu Huwlwnluwu An nannfi I-Inil .7':
in the farm ct umcncmhcod soeuritim or partly in can anapaxtly A. V. tom of sum nacuritica tho aggregate its Piid "P °IPit=a1 and u not be 1»; than na.2o,oo,oooia~%.}"%k;t: t1;§p_=m "
of hunimns in" mm, use its pzcflta 1n. ' and Low n.L" " the Banking Rwgulnticgnfi ~ granting any liconag. _ in" of Banking Company A. India the 231 has to be impcctian of books of the "__-i'~th.o- linking camany is or "will In in an petition to pay its pmunt or future dapasitzers in run as puz- thsuix claim on their claim acczuod.
,2?/,L/' ...a' sauna sufiun
-Thu affairs of the comany :30" not being 01: am) not likely to ho, aoxductod in an manna: detrimental to the ineuroat of its present or ' fntuu depositors.
-'rho general mnnactfi 1 the p man-Veggmani:._ at the cemuny w111~..__'n%ot %m % pz:¢jud1c1a1. to 'pnh1i:':~ _ intvxoat or the igztcrgst-»LA_o£ "
its dopua1to:'e.., 'j . ._
-::api1:aJ,.-- I atzzuctura '**"4"fi;P*99°¢*": «%;
-The public interact' ux:v¢d by the qxyuxt _6:'E._~ ,a.'=. v "
¢om9¢n¥*%fi¢%%?f° % carry on banking husimasa _ " "
licnsu to the India.
"Thu available 'An. _ prqpmrod.
principal mm of 'the
potunt.ta.:l*--..w'». at,-_¢poV.. " ' for oaganaioia oz! already 1.21 oxi§=sij3!:O"1n area and 'etha: rplwkat «factors the % ' f =s;f~--, ' 11"ce2m' would net:
120" V « 1 prw3Ludici~a1 J to the ¢5;:u::;:t"ian:" consolidation of system <:ona£--s;tsa.: £t». with nomtary géjier gaéailnisu 1 D1 3 stability and economic:
growth. . ' " V '
-The Gcmnszmnnt or: law 01' the country in which it is "
incoxnouted does n9't:"""-~. : ' discriminate in arm 3-my 4' against: the banking India.
-'rho couwanar ccm"1ips_«"Vwi'i:h 'A V' 5 all tm prmiumfi flanking nog'u1at:1on-1 V 'fh=ct:.-._ __ . mplicahlu to 1 2 cc-upon!--B w:l:n'ida f_ via}. .
suction.» 11,yk _12;k% 22g%% 22 '¥\I¥-II'-ll.!\l\-J\l .lf\ l\Il\f'\'\ l!r\III 49 . Undo: % » the Bankinfl nogulutfion for obtaining 3_.fiesns-ii is more xigcxoua as cowarod to the procedure 8ac:.592 or the companies Act. ' Further ands: suction 23 or the Regulation Act no new place cf Ahaiaineas can be eamoncad without: prior I NQIH \'I\IH'l\'IAE)I\1'\I -If'! I3lf"1l"!"\ I-I£\lI-E \1!\I\-II'-fl\I)l'M\I Jo"! I)Ifif'\"'\ uniu L.\J'\Jl\I fill F\al"'IillIl"|lnu-I-u .... .. 3; ..
pnxxuiaaicn ef the RBI and boforu granting permission than RBI has to be aatis£i¢g__ 1u:jr:"LI'§i§-«V. inspection ms as at the Banking Act as: othsanriua It to thfi V' general chuxuctux of H10 'V adequacy or its prospects and t:hnt mmld be sowed by $1 at business.
any fnilnifé -£ h§":,§cbndit1om impc-and while would result in rwocfiitifin V Thus it is cvidgnt Regal-ntian Act is N ' A ""iu7gia1¢tion in relation to in India which iuvolvcn intamst or dupoaitors, policy us! turn consul £i.ucu1.hno.1th country. The banking system in tho % is omtzollod by that max. .£,J/ ||...::|._l|I\lI_)tE In. I\i.f\.P\"\ l.l.£\II l\l'|I\I!r1Ia'1I\l"l I nu'-VI I -aw».-«
50. suction 493 of the said not utcasps that natwithatmdinq auythiny %4%;;g, Section 21 at the cmpanioa hat, 1: central Govozsmnant shall '_ approval to the change 9:'. ccwarxy units: the in 'V V writing that it vhgp 4:5 munch change. 8ect1'6En §' : . £'_!Vf¢«t§I that notwithstnna;:ié:ng j'~ in the COUKI U?' IKAKEVHIHBH TIIUH \u\J|uJl\'_.l.V'\Jl' nnnlunumuvn u uses: uuun: vs Companies Anti"; for the ceazimatigcag ox = the A 4-«many shall bu mumta.ing_|1_:;1o' V ' iiancfla Bunk caztifics znoAA§$b%-cation to such alteration. $;}I"_j..IPParent that that provision: noguxation Act, 1949 aver,-mac cf the cans:-unis: Act, 1956 in mgfiizen at chango of awe at a banking OJ: alt-station of umnozandum at an LUUK! Ur I\l"'ll\lVIr"'|Ir\I\r1 flit! C€3KP1d€-DIES ACT, 1.956
51.. calmuxios Act. 1956 is canaolidnte and now than 'V comganioa on certain _ A. 6111130 :5: of seczgm dI.I:.:f:!,x_1taaV k V company» to have the flanking Ccmaniu %%;£%"m-.n Banking Rggulatian of Section 234 of -states that tho apply mtatis nutanc:i.iaV'§ #6 1 liquidator, car 5 iiisthin the mound.
foxlgifl V Section 111: under thin Act. It «tract Section 234 which duals uigfi at Registrar to call for "=-~. _ '-».in£oru:n§L*a:ion or uamlunntion. " "Bauer: at Registrar to call to: infozruntion or nxplnnntion. 234t1} mare, an penning any dammnt which 3 company is roquirad to submit to him under: this Act, the ...u;-v.-s s ran 1 5-l\l\-ul'IirlA!\3$4'\i ..ll'\ lSl1"H"\'% Hf}! an the oonvauacy to fumiah in writing any infnmntion bl.' nazplurxation on mttoza Spfiflifiid in the ordor,;"=._ within and': time an In may spocitg-..4 therein: and the pnavinicnn of !|0<!t-ion! (3):{3):(31\):I4J 834 (€13 6:!,j'=.[' this scatian shall apply to ' order. .
If upon inszuixy. the." n'o'q1a'--trsa:" 41:!"
antiatiod that any r¢§.;o:;cm:ution"
which he tack 'ac1::l.an I:h.ia;_~, Afi'i:b"
auction was .friva1oup or. 's'eVxa1'_:i-::»"»:.seg,VV he shall disclaim tk-9 '*'idanti.t_:y*-- cf his informant to the ii (8) The prwiqionfi '<21: i:.l_1o sdcfiion shall wply mjtapdis to ducumonta -which o. ]*11quidaE.91:.; or a foreign Vuilthigythg or sacking *5§1, i__a....'1:aqi:.i.r§di' to £11:
k __ it is zalcvant to rain: Coapanina Act, 1956. V " 'tc; coupanioa incorporated
- 'Hx"}:rcrv1nions an to natublialaaont in India. section 591 L dogzmyw.-ith tht app1:Lcab111:y of Section 592 V "V't:.o,L_{5O2*V.co fnroign companiaa reads an 1'.'a-llcus:
591. Application of aoctians 592 1:0 Gozzto fczzoign :11 section :92 to 692, both apply to all tomign conganiaa, 4 'ii."0"_ ' near, cctapanieu falling under: 431$' V' cluaan. ram}. :-
ca) cacpantoa incaaqaoxazotx oigtzszfgdo India. which; aftprw "
camumeomont this:
est-ablisly. 'o. p1.~ac:¢~. 'qt hfiavimfia within India:
lb) cospruniam " 'ias¢.:§¢-xu'k-§d outside India. .._!:l_l_v'€}t. -\"~~.vb'e'_£fa:.-.°*o the this Act, autahliahéd Ea" p1ac0"'*¢.~£* huainoaa 'continue ta 4_§Taf€.'Qb1V1s3;dd place at
-------- «-.bi1ai:x*¢§sm *'«.fwi_thi2:.....v:i:n:iia at the cf _-- this act.
{2} contained in nub-soctian>._E1}. ._fih§:_6' not less than fifity porcentqv of than -'§a'.td*~up aha:-:1: capital {Whlthlt V"p::efu1:.a:§);u;.*o or: partly equity and ";pn.'ttJ.3P p'm:£m-'tango: at a ccupaxxy incaxporatad enegida having an established plum ¢:f--- buainsfls" £n.v~'I:adia. is hold by one or more V citizifiu tiff: Izndia oz: by one at more bodiau " "=::o.rp<>;1:_a.tq> 'in$:ozpa:atod in India. :31: by on: or more citizen: cf India and out or maze bodies faozponata. " incoxpomtad in India, whether 4sing1Ly._ox in the .agg::o«:,-ate, such company shall V "c.fcw§':1§,tA'with such of the provisions of this Act ' be proacxibuti with regard to the T _4'zaz1aa.inoas caxxiod -on by it in India, as if it "won an company intzozporatod in India. I w I
53. Section 592 which deals siibth documents «ate... ta be delivered to V. by toraign comm-uni-on carrying on bu£i:::L:najg°V#Vi"' ' India roads in fionllwts:
592. Boqmonta, atc.,=' tp anxiiraragi -.-.5 Registrar by foreign c'cngs¥aniaI!r ._ an business in India. _ (11 Persian caum'nr.aiol«"V ithich-.7' affiix than aaummcomont of thiaii' Mt. i.>'-nai:«1g':sAl1ahod a pine:
cf buaincaa within In€§iE1',"Bh&l1»_p"-$'1'l:hin (thirty days) of thoi'-9ata:]z:I3";ia1mia:E:;_ of 2 place of business, Esinliwaz-:_ itca' "«.ti::di--..v____£§.iogiastz:«az: tor:
::ogiat:u1:ieui- ~ V 0:'-'3""~ ._ _ is iIgs:':;L'£ie&"-.... copy of the _ " _ _* statutes, an '' _Gl1'.Id articles. at ' '-- or other _V inst_r(1niIz:ei% constituting or alyofining tho conatitution of .... and, it tho is net in tho language, I certifiad A ffwnsaalation thereof! 1 (la) ,i:ha 1111.1 «Gates: of the V . roqintaxed or: pr::Lnc:ipo.1 offing ofthu ccmmny:
x §:::.5: a list or the directors and aneczctaxy of the cawuxy, anntnining the pnzticulus mentioned in sub--ucticn (2) : my the new and aetaxass or the mama and address" at one one or more persons resident in India. authorised to weep: {h} with xumcct to the secretary. or where there are joint: secretaries, with zcape::i:'-.._4t:o each of thear n (1) in the case . ' individua1.v.:'*"h.'l-I P_I§¥$€31fv._f, nmo and tanner "name -.
ers::neme,= pr afmmanes; end his uagial. V' ::oa1,&3n't:1'&1 "
add:-ens;
(ii) *3§,§7',"e§f--f. C 130d?
cozpo:;eti§; 3:5. . V cgxpoxete V name"'~-.&nd..é"»e._zs§1$t§::od or ' q p::i_::::_2ipaJ;~. étjtiggiz Provided thé»t;g_ vihe.t'ef; the partners in a firm n:e~~j;>'i.n1:"'mcretuieaee.bf the coqmay, the name qmad pri2:<qii:~e1..,%6£vj£i<;c3 of than £3411: new be a2:ated'v«.1r;ustM6.;e£ particulars mentioned in clause "(I9-J' _o1'»._1:h.i.'a _ Bnhriaection. can am...;2a users: of the Explanation to "'«.._auI;-E__-'ee;ctien (14%-~--::£' section 303 shall apply for the Lpu"::'_t;.~aas"e_ at the construction at zcetexencea in {2} to present: and tonne: names "a:1d.__gu5:na:ae§~.':hn they apply for the purposes rat the: 'const3;r:si:t:ion of such references in sub' L aoatioximrg at aoctian 303. _"-In Eaxeign coupeniea, -other than those * _ '~._'mentienod in nub-auction (1). nhell, if they not delivered to the Iteqtiutrur bofote the <:a::%:a.<:em-ant at this Act the documents and
-»pn:r:t:1::x11a.r:a specified. in sub-uecetiomly at section 2?'! of the Indian commie: Act, 1913 {'3' of 1913); cmntinue to be subject to the una-
ohliqntion ta dulivnxr thou dccumuntn particular: in aceardunce with that
54. suction 593 «can»; with bu delivered to Registrant mfd'1.'3j.§B-:
what.-an document» at:cs.,_ nitéztd follows:
593. Rntum ta: he .e:'ie..1ivax:od---14:6'-..Roqis"tr§r by fotoign company i-m'a1:d--.L 1:. €30'.{'.'%§W'133ZB; ut:¢:., altorcd. ' If any nltenutian <'>z;1m:t':a1x:'I'i.v"1n-
tn) the §--fi5=-ajtrtazz, :;at:ntutvaja,v____g=r mcmoxmndtm ¢1)¢.!'~»A12§§i§._£,.'l3E'_ ea: at ifloraign cam-any on <>{*:ho£'* _ '=_ceonnti1:uting ox:
._§h_oV "cg:-naétitution of an raw-an at th)', that 'racg1atfi:;¢d'ox principal attics Raf u--£6'::rj¢i§z'.\__ cu:
W.) Vdixéctaigés oz: secretary of a or ,£_1:l) vthc 0:: address at any of the a,---.pe;:non:n'"authorised to acaept service . _ behalf at'. 3. tozaign cowany; ox V ,{e)_"-._t22a§~t._1:3:-incipal place at business at " " in India:
th§'¢ttupgx:3r*~.V.Bha11, within the proacxibod time, .do1ivex'----ta" thl Registrar fax: registration a 'W-e._:ratu1'n"_c£antain:Lng the pxoaaxihod paztiaulaxs " "§:«:E"t1'.;§ alteration.
-94..
55. Section 598 pertains to pcmltign 1 \_Jn.I|.1|I._l|II:h..l\'I;wll|!n l\ll'I.f\"°§ l:£\n fox: nonwacmliamcsa as any oi: the part XI xoada an tollmvs:
593. Panaltius If any totaign -::omp5anyj_"T£ai1_u"~_.t¢' eomly with my 4;: the tanogf.-3139' "
praviaions of 'th-it Putt, ' ._ the czamany, am «very '"egtficoz* .923» 99¢';-gt of the cwany fis_=:§.n detgulti, nhall he puniuhahzge with 'flan which may extend td xupatu, and in than can "at: ,a_v";¢§m:i_;1nu1m ozttancoy vu1t$i"'*ai:'L tine eascgnd' 'ta thousand zupqaa.' f7i_j6._':_;:_ taming during which the icsos:au1t:--. aamzinugas
56 .' is mind upon by the tint instant can and on the %%%%:m1;s Kc-.4!20G2 fer dinpouul of Ta-#V.'A%._ "'x:§s:;.a_'z?:;:Iooo wan tiled hetero tho mm, in:
than c£':Ee§£'t of non-comnliuncc of n ftmaign with the provisions of part XI, its under contract. atc:., and 1:11: said
-~5--s§:<.:tion xeada as tollous:
@"
snug-.45.;-as u IJ\II I
599. Ccmanfs failure to comply with Pazt,~"z:pt ta affect its liability under contracts, any failure by 0. foreign company with any at the forugoinq px:ovisi<1n§i_i ..
Part email not atfact th£iJ7&¢lid:ity:AiV:c§£ cantraact, dealing on ¢fit§1:fifi_VV by the company or its 1'i&1§i1i£y' " tc }j$31_9V;!...'3 1::
xaapact mamoz; but thav'Vi'i'c§tn3;,:any'-sixail 'gaot he untitled to bring airy auiiz,' aix9*"'Hét off, malt any aauntar-ciaaiga my legal pzocawdinq pa-sp9'c;%::fAc¥£ contract, auanng or V33: has colpiild um: thr 5?. = pulpouo as piaxft x: at the is that a calming! °"'a.1.1t_:.:5idc India should in than :'a§t'teArvv..'§fv"v§fi.sp1ying information to than public titutian, et:c., submission of '.V_'ac:c:'$uni:Ags in the Registrar oz couupanics and than V' :ff"::§i:int1":ati0n. and contents of pxoupuctua be fifiiifiad on the: sen: touting as a company mirxcoxpozatod in India. foreign companion are maroly required within 30 days at .. pg ..
ostablinlament of plant of business in India to file apacitiod documents, cg. documqnts relating to their: incorpazation in the of erigin ate. , Sec. 592 cf tho applims to tomign compgniqp "' outside India after:
companies Act: and oa':§_ghJ,_i.s$inig at business in Indium lthi,l;A"vS_I:¢<:1j;ic.:.1i"'§93_ %:£ this Act deals with a1£¢fia:ign i£C?§§ gun or tho banking cmmgmt, "the furthsz: nocoagity 5: $3¢;s§1 to §§¢:593 paxt 31 of the said . tho foreign conwany uitzh.fL_x; jutifi-fiitiéiion at' Indian court 11: dotina a foxaign away for 9. pozzaon to accept the Fbohalt at the foxaign aampany in _' V ._,;g;;d1.~~_, ;.
53. Though undu: tho Commie: Act: thorn is no formality required for a. toxaign company %§,'5/ _g° to uutnbliah a plan of business in India except the tiling or docnmnts 2 part XI, the permission or the Rnsorvd_::: 6£_"'_¢'T India for an foxliqn bank place or.' business for ~.
cf commercial. nutuxn in rift:-aua:9v;r'3v.,'_ 'V
59. me quus§ien_ L in the instant cams has been cf Section 592 awe: lie}: so that 0.5. 6.3. xo.326/2000 filed by _1:ho the nm are not magma ~5anaA§7i's'iahs at Soc.-rim 599 of tho thezcofore am mairtaimflo " -- 6'.3l- fssetion 592 of an Act deals with V. V'v:.V6a §E§bi§iflhifi§I plan of buainua while Suction at tho Act pertains to an alteration in the particulars mntioncd in clause in) 1:<> ""€§3 at the and sactinn. soc. 592 not thy V. fiat mpli-as to Ioroign companies K ctutside India sitar -1' cempanioa-. M1: and oagaxiéfiifi business: in India. stho 'V expansion hizéinbvfia" is not definsd under the} has to be unriorstood manner and mode by % %£§x§;g§ eaten the if zffa ' V prenris ions at part xi. {:3 Act.
~s.oc1:x3.iah'"'592 at the: Act applies to a T. that firm: time, a place of ontahlishnd in India and is an:
um.-k-2 snctian 591(1Ha} of tha Act after the commencement 0: the companies 1956:, uhno Section 593 applitu to In case which an be covered Suction 9/"
591(1Hh) 1.0., cowauy inccrpornted outwidg-a--.._ India harem the confinement at the ,, Tlmzntorn, .5 cwony incorporated M India which 'after the ceru:nqn:':;éomIx_1i:A Act". "oatahliahas 9. pJ.u.co_ at India" in aovorod under: saggfion %592% xV!_-at 591(1I{a! an my in both the mtmriaionn. $ hand, a company which VVg@:'gf::a id¢ India which had of this Act: buainua within India have an mabmhod plums _ India at tho <$£'v*«««this net" is covered undo: §s s¢.s91m(m cf the Act. up two @553: mutually exclusive and operate " 1 diffuront cixcumatumea, as % :11 ca) and (by itsolt my . " §:ig15f§rOntilt0d the two situations undo: which ~ f'1:ho provisicma of Part II of that Act: apply, \.a\.IlJl\I \lI I\I'IIIIID"Ill"!I - u.- -
- 109 -
namely, foreign ccwany incorpoxatad outzuida India. (1) utter the aomuancamont of the Act, astablishing a plea: of husincas within uheroundoz: 5¢¢t:L¢n 592 wplios and the camoncnment of tho A_.r2t,-__ &_ place of huailwau within * to have an cutablishécj'-...V_p1§¢a__ * L' within India at 1:11;; bfjnhfiu Act; uhazmzmdnr sac: . 593 "a:;Syl.i9é:. .. . §V2";"'T':,;};; in§ta££""'c;aIso, The ham or '£.'okY°.r its husinaua in Imiigv pxfiiojc onforcemum: of tho A.Act,""'i§56 1.0., in the you: 19.52,
-under Section 591(1) cm and 3' undo: Sac.593 at the Act as " alxaady hold that the ":L:"ga9:§'§nx!amalg~matian at tho two Banks did not to 'tut-abliuhing a place of business within India. and therefore, 'does not £9.11 undo: Scc..5-91(1) M) in well an Bec.592 0f --'"Q1O Act. Our View is alao tortitiod 2 approvals and aancztiona gnantacl by VV ROI: in tho Your 1996 undo: the Renown non); of Banking Rcqulatiuns 'V Act, 1955. ms were granted on the of the tank at xitsnhisni Ltd. .. and of -xokyo xitaubisni :VI.1:&.,§ t'::;.§ 'i.td., did not result in fihizd new entity not was _& #13 AiI:;::ti'&s;iVa1i.am-ant of a plate: of 'Ifuiia. but a. continuation . of place of buainunn and 'thn:a:.§::§,A qppliaatian tiled by the 1--j§'§t;'§t.i¢mr" B¢c.593 of tho coupanios act and proper and tharatore, the V. Vi$h;i; §§_;t_'J%.ones maimed by the xuapondant that the proceedings H5228 not maintainahlo in suwrwwuwu E,»
- 192 -
view of the but under so:-:.599 of the C*O®&33.3i$8 Act is nntannhl.-at and unjust.
63. The Banking Rcgu3; n»Ei6n_v ;£A¢:'s': _" ;§V 7§ ".
spacial tnaamont and ov:or:1 du'i,_ act: whereas Cowanioa V. am even though xaszgr not prevail an: the act.
soc-.515 ch; g2:f .; :§31¢ an express pzaviuinn comaanies Act eha1J._ jnbfv is inc-cmaistcncy with the : 3§,:.:.king ncgnlution Act. '1Che1:cV£_«:;>rxu; Regulation Act: and the 1934 ":rii::ido the Comanioa Act. . :tI:b;.:u'» the fact that the change» in name was gxantod by our opinion is in consonuwo the change in nan: granted by than V' ..._"V V"3§i§iatxnx of cam-union 1.7/6 593 of the hfcczpanioa Act, has to he given dun weightago \-f\| I)If'\f'\""\ LII'-'\H..I \-f\.I¥Il\-lihllfl-af\l ...I('\ l\lf\f'\"'\ I...ll.'\II_I . Lnmu uxmuwmuuu an nann-u unru uxmrmrmm-ru ..:n nznnw uniu H\I\-HH!u3I\flI -Ifi HEflfi"3 I-ffili-I '*WW|*'N" -3"' " "mcoxfi s.-4i.~na¢u1-Q' ' -103- and taken as an conclusive: praof of the that both tho authorities while '_ Q' thnir rospoctivo juriadictianu "
respective unactuunta knqulatim Act: 1949 and the hum taken am View that '£9: San altar:-ation in the ;c:n£ and not a can of nu places at husimss View, 11116 DBAT. Vfignvé taken into .*;h§'1_'iV"i:i§.:a>ti£1cation dazed 10.4 .95 the official gaunt:
dated zfr.4.§*e 'fine chungo at am in the the status of the potitiomx: an ma respondent has ulna pr.-odmod V. 3-6 as: perusal of which malts: it "'A..__ japparont that on 14.8.1996, an amnnmml: ban 9/ Lu\II.J|I....lLI\Il.l'\I II\ I\Il'\I\I\ III\IIl I...I'\|I....lII.JL.|\I|..J\I I.I\ |\Il\l\d|h I Lnn_::n_:n ilnl V-.143. ox.' a mesh limnco to ' by the m.
with the pnowisions of part III at Cowanicu Act: 1956 by at foreign comany ». fuo.rc filed by the petitions: in the office at '
- 194 -
been made to 1:118 nmo aulajoct to conditions numtionnd in the m latttex "
3.5.1953. Thorozlforo. in our vista, I ' of the: use mmmmt, the g;an'i:a§i'--_t9"'E"
than ar:a1:wh_J.J.a The Bank o£ in thn mm at tho 909:1 that there has 9.?
bunkinw business in Am: 1996 pursuant to V. I aaopa at Sm.-..592 cf fact that tho mntinuod in thin nun only mnkos it wpaggnt a chanw in the nme 1 The roquiaito docflta in W/ h\J\.ll\I var l\fl'Il\lI:-sir-swim nu ..
- 1g5 -
the nwiatru cf companion in ozdu: to tag:
u_z\:c_n:\...l'LI\.aL:\I Ir"; l\ir"'nr"\"'i LI.t'\I that consequent upon the mango: tho Ian: 1 at Bank at Tokyo as it oxiatod prior .-magnum 3 cnntinuod 3.n.u:s.stomo by <>s:f§'Ea"&:ig>1"3, ext L no new place of hnpi:m§a_ established. an: thorivtji-vans % al§ewz§§ti'€.'§£" k % may change at Tékyo -
uitauhinhi Bank -T,' plnca of business Undo: tzha coemlniou M':
1955 was %%% "n§£ ;i§z§ég§a £é" tho tact: and circmutfifivw hand it was 80:.-"593 of thy «flags: appucamo.
% 3 dntad 1.9.1981 to flxhihit I ta Annoxuro-C whidh do¢ut§:nu.undox socnona 594:3: and 593 of f Act and aumittoa to me 110:! and V. by the mo iwxunqly typed an RBI) V'A»».. V:--.*¢apcet1vo1y also clearly establish that in
- .105 -
the first instance, the business of The at Tokyo was oatahliahnd in India p:io;...'f.j§'-t mrgar and that site: merger, the ceuwamr was changed in oi! the Act.
51. Accoxding ':39 th; iééxm 49 was filed by tag; along with documents 5:: name was filed on a¢::.;u. amlcmumm at thy:-" in a matte: oi'! :c¢o:d ':3h'La't mom 49 and of coma !"o.1::na 24.5.2004 were under:
3-.923 6f """ "the Companies Act. 1956. it is 4113:» a matter of xoaord tza.4a+,;%%%'p.::%:£.¢h:%%(% imoxato the petition»: had tilsd Docmntn on 5.8.1996 including tom "Sa.§ 9*_« togatzzm: with mondod Article: or V. '--- I:$§:.*ox:>ox-ution and List cf Directors which had Ejhoan taken on mean: by the atria: at the act:
EM"
,/ M/,,«-«, A,',-«-''' A '"n"fi Ha": '_n"_,"_,_'"'__,." ,,.,_ ,..,........ ......... ------ ----- --- ------ Ll'-'\!I.-I \-I\I\"Il\'Il\i)l\'f\| .I("\ I3il"'I('\"\ Ll£.\ILl V-I\l\~!I\~liH\l\nl'\1 J
-107w aftax dun canu:l.du.x:ution and us put pxuct5g":.~§. on 3.4.2902, the napnty ccuparzioa, mm of Delhi. and Hazyann an latter to the pntieioncx: as being :11": on 5.8.1996 ix sncticn 593 at tho Cc:t§a§z;::L:e.s 1§<:t,V.. _ was taken an ugffbcfvj from 1.4.1996, the nuuo' ma changaa txaaa» to the Bank of as . maxi by latter aatod¥%%%23k,4%.2o¢5 made a ccmlaint: to "" 'fiaupanioa and that said disposed of 'Vidl order cloning the cewlaint oi' the 1 Vthm: the petitioner had not with sac.5s2m of the companies let, ' that thc reply of the petitions:
nun zmcsahrod to the caupluint and am V71-LMX ¢f"',,«=~" ' Myw' II Ln:L::u_:n|\I\_J\I Ir; I\lf'|t\F'\ lllfilll I.l\ILul'lI.ln§'\l§.-l\I If! I\ll'Il\"\ l.I£\ll.I \-al'\.ILJi\.l'LI\lLa!'\I If\ I\I!'\f\"'\ II£'\IiI \.J'\ILJII.JAI\.|t.I\I II'\ I\lf\f\"\ LIIPIII
- 108 -
furtho: cctim in required in the matter had humus tinal and thorotoro, Shannan aould not hnvo gem into K an the mnttor had bun nogiatxar at caganiog nocition. the mhaoqfiefit» §>a*:é§.'t*' -I the Registrar or: cc:péf::.;_oa and the complaint nude were also placed gm the BRET, Chennai £n mma the rwiow V69. mere, it: ha been ms V':éIx:'i:1£iod in tho lettcx: or the Lk%k%¢£§%1ca%%§.€¥ mu dated 24.3.2004 that than mzgox at 'rho Bank at to the Bank of Tokyo-Hituubiuhi. am at the petitioner has bun V. in its Office record and no frosh , fcoxti£i_c¢1:a to: oatnbliummnt of place at I fi LJJUIKI V!' l\l"|l'\l'l"lIl"lI\rI -nun I-d\r\ra\_v< . . ..-. ... .-. - .__ __
- 10' -
Busigcaa in xnquixod to be iaauod and that said caztiticatn in eoncluaivo with V, the ceuplianao with tho p::oviuiona~*.. j'o::
Cowzpaniu Act applicabll to '30. 'me learned <: <.:»ur;as=a1 j'~_; 1*'-.2111: uapomont: ms nalieag. 1;?;s5n f:§:'VVV"d9¢i§ion tho Dulhi fiiqh " can at 9 .. x.nmwrmggmrg or nmn am; % %%:%:ma cam: 37) wherein; the Mgiatrar at tun afiainintzntiva authogity section 609 af thu Mt attics of the lugiutrar M mo:-aly an affine of rocurd.
in neither a court not an authority tad thnxofoxu it in % that the eoztitiaata iasuad by we ':*-- # u_§iatxnr of comanicu in the instant can is f'jv.st$.<':i.ab1o am that it 1; not the timl .«--~"' nu u_nn_:-c..1na\n..a\I II'\ l\lFuF\'\ l.1£\H..l 5-f\Efi'!'§¥'IB&I}I\'IXE -in é no 3 auehozxcy to dccids as to whothux: ccumignga with section 592 oz section 593 camanioa Act is requisite in 4: '% " 1 V 1'1. Loaznod sonic:
putitiancr in ugly has at tho supmmo -Beam; 'V6! [assays figs}: substantive rights ahtiilg ti: be defeated on tochniebl' jg}; irroguJ,.,a.1:;ity an as t:.o" 'injustice in done to % X A vim.' under 8943.234 of than the ltogiatrar of companies is 'I€2*.}V.?C I. and proper authority to decide upon as to smother: tho docmonts tiled apprapriuto or not.
i}££"I(T') 3-.53"-I HVHIHRIHWV Jr! flll'if"l"'\ unnu I-l\tI..rn..r|a\Isa\| 31-. -no-4.-n. - um;
73. the reasoning at mm, . x attor margin, 3 new antity under: a came into oxiatcnm and if kant'pd.;«tA§' on main": in India, thnn_ the xelurvant Section 592 of tho. the plltitionat mm not purview qt section in am: View is nut Rtfination 592 of tho pxaviaion but the queut:l;§:;V!'1:'hu@t;~ this can in not as to whetlwx: n non-ccuxaliancu of a but as to whether Section at all to the fact: and of tha cast. Sinai we have 7-'~_'__"-taken"viw that it is Section 593 and not 592 which apglioa in the instant case, . inane roguding a mandatory ptovisicn not »l>o1ng cccglind with an reasoned by thb BERT ,% ./' _....n_.n_...uu_nn an I\I('|l\F'\ nx-nu: mnnuawaluwu .315 I\Inr'\"'\ L.I£'|tl...I u\a\-1:wM)nn.m ..l('\ I)H"'l(\'} I-I')?
Q m X does not require to be gone into. roliumzc plasma on than two decisions _ 1991 ac 10 -and an 2004 St: was above do not apply t<> ' Wi:Iii'¢ cimucmtanean ot thia cue me ohsuzvnticn em: Méha:
is taken by the be in tho nntuxe acts and does not l;;au.*i§§ _'-- a upon the:
Tribunal %tjf%"asifili§z1ty) which in antit19d"'t¢'.§ : issue, is not c:a::¢c:t::} : the Registrar of comm1ufi}§'*--«.Vam V§::A-'zjapiication of mind. has tr; documonta tiled are in station 592 or Section 593 and
-object and purpose at tho $'l':'l'l7uI'§l.'-'1-.GV" .:.«l.VB"-'|lI3.3. an the c:1.::c.'umstuncos of such to he-homo in mind. (man than exam: "till: Rugintrur of Cocupunzl.-an bomm final is not $313.-caged. the memo has a binding _ ._ __ . . _.- ._.... ... .. .......... slrsn . ..nn.m.n.muu Jn mar-n unau Hwaunsnwu Jn ulnrn I-Inn-I WVIHNRW ~30 I3-M0'! Hm" WVIVNNW 40 i>ifi0'Y H'-'>||~ ~ 113 ~ effect on the Courts and .'_Ifx:3;_bunai.é".'* ii" instant case, the RBI hr consideration of the petitioner before "tat. that the instant cam --§:{'>".astab11shment 026 a. new placg. vuof :v,buV'$,.'.2f-:r"%eV$3".::'.'a§..d.' v.t;r:xéi:e:£ore, the need for and an V 592(1) of the Conpariies "i not necessary which order binding.
'A 74i.wA._;1;4::§"~.,\_riew of what is stated abcwe, the 638%.: "a,é;'_t;e_dii;;"'i9.1o.2905 in M.A.No.82/2005 and V . M.Ai;"No;..V:8.3';'".52005 passed. by DRAT is set aside.
".t,:Ccms4aqu_ vvéntly, the order on the Review .'P»§ti'tions in R.P.1~¥o.1/2006 and R.1?.No.2/2006 T 'passed by DRAKE is also set aside. The writ petitions are allowed but without any order as to costs.
.. 1;; ..
1'5. Since the pmceodingu before: 1:13! are pending aineo the you 2000, that that sum he concluded oxpea1:V1¢sn§1g v. V at any tats; within I. from the data oz'. mcoiptj. gr .c:r¢1To;:;t:%_c. " "
' ;7*aés;$i:;%.m~.
' HQIH VNVIVNHVM :10 HIIRO') I-iflli-I V)IVi.VN)l\1)l .-E0 I)£fl(").'1 I-£9'-'HI-I VXIUEHMMVS! An "Inn--,, "nu; g-\;\.;n.,n,myu _j("\ gut-\r\'\ man a s-mu-un--un