Bombay High Court
The Veershaiva Co-Operative Bank Ltd. ... vs The Reserve Bank Of India And Ors on 4 October, 2018
Author: Sandeep K. Shinde
Bench: K. K. Tated, Sandeep K. Shinde
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. 1892 OF 2013
ALONGWITH
NOTICE OF MOTION NO. 180 OF 2017
AND
NOTICE OF MOTION NO. 110 OF 2015
IN
WRIT PETITION NO. 1892 OF 2013
1. The Veershaiva Cooperative Bank Ltd., )
a bank registered under the provisions of )
Maharashtra Cooperative )
Societies Act, 1960, Through its Chairman )
Shri. Shambulingappa M. Kolur, )
Representing its Board of Directors, )
Having its Head Office at: 31, Basaveshwar )
Bhavan, Basaveshwar Chowk, D.K. Sandu )
Marg, Chembur, Mumbai - 400 071. )
2. The Co-operative Bank Employees Union,)
Mumbai, Unit the Veerashaiva Co-operative )
Bank Ltd., Mumbai, a union registered )
under Trade Unions Act, 1926, having )
its office at Basaveshwar Road, )
Shivgan 1/55
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Basaveshwar Chowk, D. K. Sandhu Marg, )
Chembur, Mumbai - 400 071. )
Through its Organizing Secretary )
Shri. Pankaj C. Parmar, ) .. Petitioners
Vs
1. The Reserve Bank of India, )
Urban Banks Department, Central Office )
, Garment house, 1st floor, Dr. )
A.B.Road, Worli, Mumbai - 400 018 )
2. The Executive Director, )
Reserve Bank of India, Urban Banks )
Department, Central Office, )
Building, Shahid Bhagatsingh Marg, )
Mumbai - 400 001. )
3. The Dy. General Manager, )
Reserve Bank of India, )
Urban Banks Department, Central Office, )
Garment house, 1st floor, Dr. A.B.Road, )
Worli, Mumbai - 400 018. )
4. The Commissioner of Cooperation & )
Registrar of Cooperative Societies, )
Maharashtra, Pune. )
5. The Hon'ble Minister for Co-operation, )
Mantralaya, Mumbai. )
Shivgan 2/55
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)
6. The Dy. Registrar, )
Co-operative Societies, )
K-East Division, )
Mumbai. )
7. The State of Maharashtra, )
Through the Asstt. Commissioner of )
Police, Economic Offences Wing, Unit )
No.2, Yellow Gate Police Station, )
Mumbai. )
8. The Union of India, )
Through the Joint Secretary & Appellate )
Authority, Department of )
Financial Services, (Banking Division) )
Ministry of Finance, New Delhi. )
Through the Ministry of Law & Justice, )
Ayakar Bhavan, 2nd floor, New Marine )
Lines, Mumbai. )
9. The Chairman, Liquidator Board, )
The Veershaiva Cooperative Bank Ltd., )
Having its Head Office at: 31, )
Basaveshwar Bhavan, Basaveshwar )
Chowk, D.K. Sandu Marg, Chembur, )
Mumbai - 400 071. )
10. Arvind Chunilal Shah )
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Prop. of M/s. Ankit Steel )
4-A/401, Parasnagar, )
Shankar Lane, Kandivli (W), )
Mumbai - 400 067. )
(A/c. No. ODCCH/643) )
11. Manoj S. Bhanat )
Prop. of M/s. Atmiya Collection, )
Shop No.3, Shreejee-Apartments )
Shantilal Modi Street, )
Kandivli (W), Mumbai - 400 067. )
(A/c. No. ODCCH/19) )
12. Dilip Shantilal Doshi )
Prop. of M/s. Ghanshyam Steel, )
A/601, Sambhav Darshan, )
Jambli Galli, Borivli (W), )
Mumbai - 400 092. )
(A/c. No. ODCCH/646) )
13. Jayesh B. Barot, )
Prop. of M/s. Jagruti Industries )
203, Lodha Envlave, Nalasopara )
(E), Dist: Thane. )
(A/c. No. ODCCH/18) )
14. Mahesh R. Shah, )
Prop. of M/s. Lalit Steel, )
202/A, Ratnakar Apartments, )
Mahavir Nagar, Kandivli (W), )
Shivgan 4/55
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Mumbai. )
(A/c. No. ODCCH/651) )
15. Ramesh Chimanlal Jain, )
Prop. of M/s. Mac Corporation, )
Krishna Bhavan, 13, Babuline Rd. )
Malad (W), Mumbai - 400 064. )
(A/c. No. ODCCH/644) )
16. Bhupendra B. Shah, )
Prop. of M/s. Manish Sales Agency, )
150/4107 V. B. Cross Lane, )
New Pant Nagar, Ghatkopar (E), )
Mumbai - 400 086. )
(A/c. No. ODCCH/653) )
17. Parimal M. Patel, )
Prop. M/s. Nakoda Trading Co., )
Tara Baug, 1st Mamlatdarwadi, )
Malad (W), Mumbai - 400 064. )
(A/c. No. ODCCH/350) )
18. Geeta V. Savla, )
Prop. of M/s. Sahiba Exim, )
B-1, Ram Rahim Palace CHS Ltd., )
Samata Nagar, Diwanman, )
Vasai (W) - 401 201, )
Dist: Thane. )
(A/c. No. ODCCH/17) )
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19. Parimal M. Patel, )
Prop. M/s. Star Enterprises, )
Flat No. 112, Sector No.4, )
Charkop, Kandivli (W), )
Mumbai - 400 067. )
(A/c. No. ODCCH/498) )
20. Bhupendra N. Parekh, )
Prop. M/s. Versatile Services Fin )
150/4107 V.B. Cross Lane, )
New Pant Nagar, Ghatkopar (E), )
Mumbai - 400 086. )
(A/c. No. ODCCH/522)
21. Mayank B. Shah, )
M/s. Atamiya Enterprises, )
D-2/22, Hari Ram Hari Krishna, )
Akurli Road No.1, Kandivli (E), )
Mumbai - 400 101 )
(A/c. No. ODFDR/497 ) )
22. Mr. Atul P. Shah, )
Prop. M/s. Bhavana Enterprise, )
C/302, Bhavana Bldg., )
Jawahar Nagar, Goregaon (W), )
Mumbai - 400 065. )
(A/c. No. ODFDR/521) )
23. Geeta Ashok Vadher )
Prop., M/s. Geeta Fabrics )
Shivgan 6/55
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Room No.11, Gupta Chawl, )
Ram Nagar, M. D. Road, )
Kandivli (E), Mumbai - 400 101. )
(A/c. No. ODCCH/496). )
24. Kamalesh B. Shah )
M/s. Global Metal )
79, Krishna Bhavan, 11 floor, )
C.P. Tank, Mumbai - 400 004. )
(A/c. No. ODCCH/648)
25. Mr. Sanjay Mukund Bhavsar, )
Prop. of M/s. Kothari Enterprises, )
A/401, Abhilasha Court, Carter Road )
No.1, Borivli (E), Mumbai-400 092. )
(A/c. No. ODCCH/638). )
(A/c. No. ODCCH/638) )
26. Mr. Vasant Premji Savla, )
Prop. of M/s. Lucky Impex, )
B/1, Ram Rahim Complex, )
Samtanagar, Near Gokul Park, )
Manikpur, Vasai (W), 401 202. )
(A/c. No. ODCCH/645) )
27. Jayesh G. Gandhi, )
Pro. Of M/s. Mahavir Trading Co., )
C-402, Nightingale, Hindustan Naka, )
Kandivli (W), Mumbai. )
(A/c. No. ODCCH/639) )
Shivgan 7/55
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28. Mr. Manojkumar K. Chavan, )
Prop. of M/s. Manoj Enterprises, )
3, Bhagwanbhai Chawl, )
Janupada, Hanuman Nagar, )
Akurli Road, Kandivli (E), )
Mumbai - 400 101. )
(A/c. No. ODCCH/467) )
29. Ashok B. Jain, )
Prop. of M/s. Ramanlal & Co., )
294/A, Kalbadevi Road, )
Mumbai - 400 002. )
(A/c. No. ODCCH/642) )
30. Mr. Bipin J. Gandhi, )
Prop. of M/s. Shree Exports, )
Jaydeep Apartments, Adukia Road, )
Kandivli (E), Mumbai - 400 067. )
(A/c. No. ODCCH/16) )
31. Ramesh B. Gandhi, )
Prop. of M/s. Suradha Trading, )
4-601, Gurukrupa, )
Evershine Nagar, Malad (W), )
Mumbai - 400 064. )
(A/c. No. ODCCH/649) )
32. Yogesh D. Patel, )
Prop. of M/s. Yogi Trading Co., )
Shivgan 8/55
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27, Naddevi Street, Mumbai-400002 )
(A/c. No. ODCCH/652) )
33. Parimal M. Patel, )
Prop. of M/s. Daffodil Exports, )
Flat No. 02/B/102, )
Karan Complex, Near Green Court )
Club, Mira Bhayander Road, )
Mira Road, Dist: Thane. )
(A/c. No. ODCCH/647). )
34. Ketan G. Shah, )
Flat No. 901, )
Thakur Village, Kandivli (E), )
Mumbai - 400 101, )
Being the person responsible for the )
Accounts of Respondent No. 10 to 33. )
35. 1. V. Rajagopalan (M.D.), 2. Naveen )
Rajgopalan, 3 Rajesh Joshi, )
Directors of M/s. City Lift India Pvt Ltd., )
(L/G), )
Regd. Office: Plot No.B-74, Road No.33, )
Near E.S.I.C.Hospital, )
Wagle Industrial Estate, Thane-400 604 )
(A/c. No. ODCCH/461).
36. 1. V. Rajagopalan (M.D.), 2. Naveen )
Rajgopalan, 3 Rajesh Joshi, )
Directors of M/s. City Lift India Pvt Ltd., )
(L/G), )
Shivgan 9/55
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Regd. Office: Plot No.B-74, Road No.33, )
Near E.S.I.C.Hospital, )
Wagle Industrial Estate, Thane-400 604 )
(A/c. No. 0DCCH/294). )
37. V. Rajagopalan, )
Prop., M/s. Sun Metal Trading Co., )
304/A Panchsheel, Sir. M.V. Road, )
Mumbai - 400 093. )
(A/c. No. ODFDR/670). )
38. Mr. V. Rajagopan, )
304/A, Panchsheel Apartment, )
M. V. Road, Andheri (E), )
Mumbai - 400 069, being the Managing )
Director of Respondent No. 35 to 37. )
)
39. M/s. Bhargav Corporation, )
6, Vershi Colony, Andheri Kurla Road, )
Andheri (E), )
Mumbai - 400 089. )
(A/c. No. ODFDR/336) )
40. M/s. Dhaval Enterprise, )
Prop. Kishore N. Zatakia, )
2, Anand Sagar, Old Nagardas Road )
Andheri (E), Mumbai - 400 069. )
(A/c. No. ODCCH/335). )
Shivgan
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41. Mrs. Chandraben N. Zatakia, )
Prop. M/s. Passion, )
Residing at: 2, Anand Sagar, Old )
Nagardas Road, Andheri (E), )
Mumbai - 400 069. )
(A/c. No.ODCCH/625).
42. Mrs. Chandraben N. Zatakia, )
Prop. Of M/s. Passion )
Residing at: 2, Anand Sagar, Old )
Nagardas Road, Andheri (E), )
Mumbai - 400 069. )
(A/c. No. HYP/24).
43. Mr. Kishore N. Zatakia, )
Prop. M/s. Bharganal Services & )
Consultant Agency, )
201, Vershi Colony Andheri Kurla Road, )
Opp: Punjab Travels, Andheri (E), )
Mumbai - 400 069. )
(A/c. No. ODCCH/394). )
44. Mr. Kishore Zatakia, )
Prop. M/s. Abhishek Enterprises, )
402, A-Wing, Sukh Shanti, )
Shanti Ashram, Borivali (W), )
Mumbai. (A/c. No. ODCCH/387) )
45. Mr. Kishore N. Zatakia, )
Off: 201, Vershi Colony, )
Andheri Kurla Road, Opp: Punjab )
Travels, Andheri (E), )
Shivgan
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Mumbai-400069. )
(A/c. No.ODCCH/625) )
46. Mr. Anil Mehra )
Prop. Of M/s. Shilpa Enterprises, )
8/116, Ganesh Co-op. Hsg. Society, )
D. N. Nagar No.1, Versova Road, )
Andheri (W), Mumbai - 400 053. )
(A/c. No. ODCCH/331). )
47. Archana Mehta )
Prop. Of M/s. Shilpa Enterprises, )
8/116, Ganesh Co-op. Hsg. Society, )
D. N. Nagar No.1, Versova Road, )
Andheri (W), Mumbai - 400 053. )
(A/c. No.LNMACH/47). )
48. Mr. Anil Mehra )
Prop. M/s. Ancons )
Residing at: 208, Ayush Apartment, )
J. B. Nagar, Andheri (E), )
Mumbai - 400 093. )
(A/c. No. ODCCH/332). )
49. Mr. Anil Mehra )
Prop. M/s. Ancons )
Residing at: 208, Ayush Apartment, )
J. B. Nagar, Andheri (E), )
Mumbai - 400 093. )
(A/c. No. LNMACH/48). )
50. Mr. Anil Mehra )
Prop. of M/s. Tirupathi Construction )
Shivgan
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8/116, Ganesh Co-op. Hsg. Society, )
D. N. Nagar No.1, Versova Road, )
Andheri (W), Mumbai - 400 053. )
(A/c No. ODCCH/424). )
51. Mr. Suresh C. Trivedi, )
Prop. of M/s. Pratik Laminates, )
B/14, Hind Saurashtra, Near Mittal )
Industries, Marol Naka, Andheri (E), )
Mumbai - 400 059. )
(A/c. ODCCH/334). )
52. Mr. Suresh C. Trivedi, )
Prop. of M/s. Trivedi International, )
B/14, Hind Saurashtra, Near Mittal )
Industries, Marol Naka, Andheri (E), )
Mumbai - 400 059. )
(A/c. No. ODCCH/391). )
53. Mr. Suresh Trivedi )
Partner of M/s. High Tek Corporation, )
Residing at: 59/C, Evertop, Dhake )
Colony, Sahakar Nagar, J. P. Road, )
Versova, Andheri (W), )
Mumbai - 400 058. )
(A/c. No. ODCCH/390) )
)
54. Mr. Suresh C. Trivedi, )
Partner of M/s. Copper Corporation, )
B/14, Hind Saurashtra, Near Mittal )
Shivgan
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Industries, Marol Naka, Andheri (E), )
Mumbai - 400 059. )
(A/c. No. ODCCH/389) )
55. Mr. Suresh Trivedi, )
Prop. of M/s. Mica & Micanite Insulator, )
Residing at: 29 / Shivgiri Moden Town, )
Andheri (W), )
Mumbai - 400 053. )
(A/c. No. ODCCH/584) )
)
56. Mr. Dhairap J. Shah, )
Prop. of M/s. Hari Collection, )
Off: Shree Krishna Nagar, )
Julie Aunty Compound, Film City Road, )
Malad (E), Mumbai - 400 067 )
(A/c. No. ODCCH/393). )
57. Mr. Dhairap J. Shah, )
Prop. of M/s. Hari Collection, )
Off: Shree Krishna Nagar, )
Julie Aunty Compound, Film City Road, )
Malad (E), Mumbai - 400 067 )
(A/c. No. PMLN/50). )
58. Mr. Dhairap J. Shah, )
Prop. of M/s. Kinjal Garments, )
Off: Shree Krishna Nagar, )
Julie Aunty Compound, Film City Road, )
Malad (E), Mumbai - 400 067 )
Shivgan
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(A/c. No. ODCCH/333) )
59. Mr. Dhairap J. Shah, )
Prop. of M/s. Kinjal Garments, )
Off: Shree Krishna Nagar, )
Julie Aunty Compound, Film City Road, )
Malad (E), Mumbai - 400 067 )
(A/c. No. LNMACH/49). )
60. Mr. Mangilal Prajapati, )
Prop. of M/s. Aryan Agencies, )
Manubhai Chawl Room No.4, )
Mahadevibhai, Desai Road, )
Kandivali (E), Mumbai. )
(A/c. No. ODFDR / 427). )
61. Mr. Paresh Kumar Mehta, )
Prop. of M/s. Manoj Trading Co., )
21, Basement Sonarika Building, )
Chandanwadi, C. P. Tank Road, )
Mumbai - 400 004. )
(A/c. No. ODFDR/426) )
62. Mr. Devesh Tank, )
Prop. of M/s. Chitra Enterprises, )
21, Basement Sonarika Building, )
Chandanwadi, C. P. Tank Road, )
Mumbai - 400 004. )
(A/c. No. ODFDR/425) )
Shivgan
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63. Mr. Manoj Kumar Chouhan,
Pop. Of M/s. Utkal Traders,
C/31, Malad Ind. Units Co-op. Society
Ltd., Ramchandra Lane, Kachpada,
Malad (W),
Mumbai - 400 064.
(A/c. No. ODCCH/320).
64. Mr. Khushalchand K. Shah, )
Residing at: 368/105 Manju Apartments, )
6th floor, Shere Punjab, Andheri (E), )
Mumbai - 400 069. )
(A/c. No. ODCCH/263) )
65. Mr. Madhu K. Shah, )
Residing at: 368/105 Manju Apartment, )
Shere E Punjab Colony, Andheri (E), )
Mumbai - 400 069. )
(A/c. No. ODFDR/270) )
66. Mr. Rashmikant K. Shah, )
Prop. of M/s. Rashmikant K. Shah, )
Residing at: 34, Mangal Bhavan, 2nd )
floor, Old Nagardas Road, )
Mumbai - 400 069. )
(A/c. No. ODCCH/275) )
67. Mr. Rashmikant K. Shah, )
Prop. of M/s. Shah Agency, )
Residing at: 34, Mangal Bhavan, 2nd )
Shivgan
16/55
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floor, Old Nagardas Road, )
Mumbai - 400 069. )
(A/c. No. ODCCH/406) )
68. M/S. Shee Marinol Synthetic Pvt. Ltd. )
Residing at :138/150, Dadi Sheth )
Agiyare Lane, Kalbadevi Road, Mumbai )
- 400002. )
(A/c. No. ODCCH/131) )
)
69. Payal B. Khandelwal )
Prop. of M/s. Payal Traders, )
Residing at: Shop 3,Shivdarshan Bldg., )
Old Nagardas Road, Andheri (E) )
Mumbai - 400 069. )
(A/c. No. ODFDR/580) )
70. Rashmikant K. Shah )
Prop. of M/s. Shah Agency, )
Residing at: 34, Mangal Bhavan, 2nd )
floor, Old Nagardas Road, )
Mumbai - 400 069. )
(A/c. No. ODCCH/406) )
71. Jitesh Chotelal Dubey )
Prop. of M/s. Shri Krishna Traders, )
Residing at: 7/A Shivkrupa E Building, )
Old Nagardas Road, )
Mumbai - 400 069. )
(A/c. No. OFDR/674) )
Shivgan
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72. Lalchand Pukhraj Jain )
Prop. of Mahendra Metal )
Residing at 304, Vraj Manak Building-3, )
A-wing Jai Amba Road, Near Santok )
Cinema, Bhayander - 400 101 )
(A/c. No. ODCCH / 285) )
73. Lalchand Pukhraj Jain )
Prop. of M R Metal )
Residing at 304, Vraj Manak Building-3, )
A-wing Jai Amba Road, Near Santok )
Cinema, Bhayander - 400 101 )
(A/c. No. ODCCH / 286) )
74. Lalchand Pukhraj Jain )
Prop. of M R Metal )
Residing at 304, Vraj Manak Building-3, )
A-wing Jai Amba Road, Near Santok )
Cinema, Bhayander - 400 101 )
(A/c. No. LNLB/83) )
75. Lalchand Pukhraj Jain )
Prop. of Mahendra Metal Corporation. )
Residing at 304, Vraj Manak Building-3, )
A-wing Jai Amba Road, Near Santok )
Cinema, Bhayander - 400 101 )
(A/c. No. LNLB/ 84) )
76. Bherumal P. Jain )
Prop. of Jayesh Trading Company )
Shivgan
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Residing at 142-F Lalbaba Haveli )
Compound, 3rd floor, R. No. 58, )
Bhuleshwar, Mumbai -400 002. )
(A/c. No. ODTOD /42) )
77. Jasmin B. Shah )
Director of Transmedia Software Ltd. )
Off: 5& 12, Rupayatan Building, Irla, )
S.V. Road, Vile Parle (west) )
Mumbai - 400 056. )
(A/c. No. ODCCH/507) )
78. Mr. Ramankumar Sharma )
Ms. Vinita Nanda, )
Mr. Deepak Bhatta )
Mr. Dilip Dhruh )
Directors of M/s. Transcinema )
International Ltd., )
545, MHB Colony, Adarsh Nagar, )
Off: Link Road, Andheri (W), )
Mumbai - 400 102. )
(A/c. No. ODCCH/673). )
79. Mr. Kantilal M. Rathod, )
Prop. of Kantilal Rathod & Company, )
Poebe House, Sutar Pakhadi, )
Sahar Road, Near Cargo Complex, )
Vile Parle (E), Mumbai - 400 099. )
(A/c. No. ODCCH/662). )
Shivgan
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80. Mr. Bherumal P. Jain, )
Prop. of M/s. Virchand Sales Agency, )
107, Anand Bhavan, New Hanuman )
Galli, Kalbadevi, Mumbai - 400 002. )
(A/c. No. ODTOD/38). )
)
81. Mr. Bherumal P. Jain, )
Prop. of M/s. Welcome Trading Co., )
48-50, Hingwala Building, 1st floor, )
C. P. Tank, Girgaon, Mumbai-400004. )
(A/c. No. ODTOD/39). )
)
82. Mr. Bherumal P. Jain, )
Prop. of M/s. Lalit Metal Corporation, )
r/a: 142-F Lalbaba Haveli Compound, )
3rd floor, R.No.58, Bhuleshwar, )
Mumbai - 400 002. )
(A/c. No. ODTOD/41). )
)
83. Mr. R. Gavi Siddappa, )
Prop. of M/s. Vinayak Enterprises, )
Gala No. 9, Plot No.33, Near Marwah )
Chawl, R.C. Marg, Chembur, )
Mumbai - 400 074. )
(A/c. No. ODCCH/285). )
84. Mr. Ashok Kumar Agarwal, )
Prop. of M/s. Shree Shyam Enterprises, )
Shivgan
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Shop No. W-9, APMC Market II, Phase )
II, Sector-19, Vashi, )
Navi Mumbai - 705. )
(A/c. No. ODCCH/25). )
)
85. Mr. Shankar Hiranand Bhatia, )
Prop. of M/s. Hiranand & Co., )
R/a: Bhatia Bldg., Block No. 799/A, )
Behind Netaji High School, Ulhasnagar, )
Thane - 421 004. )
(A/c. No. ODCCH/9). )
86. Mr. Manish Shankar Bhatia, )
Prop. of M/s. Manish Associates, )
Shop No. 12, Plot No.6, Mansi Park )
Building, Palaspa Phata, Panvel, )
R/a: Bhatia Bldg., Block No. 799/A, )
Behind Netaji High School, Ulhasnagar, )
Thane - 421 004. )
(A/c. No. ODCCH/10). )
87. Shri. M. S. Bhoomraddi, )
Ex-Chairman of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
r/at: V/402, Centre Point, Sant )
Gyaneshwar Road, Opp: New TMC )
Bldg., Panch Pakhadi, Thane-400602. )
Shivgan
21/55
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)
88. Shri. M. A. Sidnal )
Ex-Vice Chairman of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/a: Jai Sai Bldg., Flat No. 502, )
5th floor, Central Avenue Road, )
Above Kotak Mahindra Bank, )
Near Diamond Garden, Chembur (E), )
Mumbai - 400 071. )
89. Shri. Manohar M. Kori, )
Ex-Chariman of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
r/at: 145, Shivgiri Bldg., Malavya Road, )
Next to Utkarsha Mandal Hall, Vile Parle )
(E), Mumbai - 400 057. )
90. Shri. V. S. Angadi, aged: 77 yrs, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: C-62/103, Sector - 5, Shanti Nagar, )
Mira Road (E), Dist: Thane. )
91. Shri. S. B. Ramanna, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
Shivgan
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r/at: C-11, Kavita Kiran CHS Ltd., )
Gavan Pada, Mulund (E), Mumbai-400 )
081. )
92. Shri. S. M. Lokapur, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: L/7/84, Vrindavan CHS Ltd., )
Tilak Nagar, Chembur, )
Mumbai - 400 089. )
93. Smt. M. M. Patil, aged: 58 yrs, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Shree Sai Laxmi Narayan CHS, )
(Jain Tower), 10th floor, Flat No.1002, )
Chaudhari Wadi, situated at: R.B.S.K )
Bole Road, Dadar (W), )
Mumbai - 400 028. )
94. Smt. S. R. Hadikyal, aged: 47 yrs, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Florentine A-204, Nearby Galaria )
Shopping Centre, Hiranandani, Powai - )
400 069. )
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95. Shri. Angadi Basavraj Adviappa, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Row House No.9, Plot No:5, )
Shree Nityanand CHS Ltd., Sector No.3, )
New Panvel - 401 206. )
96. Shri. B. V. Angadi, aged: 55 yrs, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Tulsidham Trinity CHS, )
C/401, Ghodbunder Road, Thane (W) - )
400 602. )
97. Shri. P. S. Deaukule, aged: 38 yrs, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Jeevan Jyoti Chawl, )
Kandeshi Mohalla Vadar Pada, )
Andheri (E), Mumbai - 400 058. )
98. Shri. V. M. Mahantashettar, )
aged:46 yrs, )
Ex-Director of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
Shivgan
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R/at: RH No. 1-M-43, Sector-7, Vashi, )
Navi Mumbai - 400 705. )
99. Shri. Subhash G. Mhetre, )
Ex-Vice Chairman of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: B-25, Shree Niwas Bldg., Farm )
Road, Deonar, Mumbai - 400 088. )
100. Mr. B. S. Kadoli, )
Ex-Vice Chairman of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Row House No.3, Panchshila CHS )
Ltd., Behind R.B.I. Quarters, )
A. K. Vaidya Marg, Gokul Dham, )
Goregaon (E), Mumbai - 400 063. )
101. Mr. A. V. Balasubramanian, )
Ex-Vice Chairman of The Veershaiva )
Cooperative Bank Ltd., Chembur, )
Mumbai - 400 071. )
R/at: Flat No. A-1402, Green Park, )
Raheja Estate, Kulupwadi, Borivli (E),
)
Mumbai - 400 066.
102. Deposit Insurance and Credit Guarantee )
Corporation, )
Reserve Bank of India Building, )
2nd floor, Opp: Mumbai Central Railway )
Shivgan
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Station, Mumbai Central, )
Mumbai - 400 008. ) ... Respondents
ALONGWITH
CHAMBER SUMMONS (L) NO. 79 OF 2014
IN
WRIT PETITION NO. 1892 OF 2013
The Veershaiva Co-operative Bank
Ltd & Anr. ... Petitioners
Vs
The Reserve Bank of India
and Ors. ... Respondents
AND
Yaad Husain and 14 Ors. ....Applicants
...
Mr. E.A. Sasi, Advocate for the Petitioner.
Mr. Venkatesh Dhond, Senior Advocate a/w. Mr.
Parag Sharma, Mr. Prasad Shenoy, Ms. Sanaeq
Umrigar I/by. M/s Udwadia & Co., Advocate for
Respondents No.1, 2 and 3.
Mr. P.S.Gujar for Respondent No.8.
Mr. D.S. Hatle a/w. Mr. Deepak Jamsandekar, for
respondent no.9.
Mr. Dhaval A. Patil I/by. M/s. K. Ashar & Co.,
Advocate for respondent no. 102.
Mr. Zaid Mansuri with Mr. Vikram Chavan, Ms.
Dhvani Jain I/by. M/s. C.K. Legal, Advocate for
respondents no.88, 89, 90, 93, 94, 99 and 101.
Shivgan
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Mr. Abhay Patki, Additional Government Pleader for
State-respondents no.4 to 7.
Ms. Nita Solanki I/by. Kiran Jain & Co., Advocate for
respondents no.35(1), 36(1), 37 and 38.
CORAM : K. K. TATED &
SANDEEP K. SHINDE JJ.
RESERVED ON : 12 SEPTEMBER, 2018
PRONOUNCED ON: 4 OCTOBER, 2018
JUDGMENT (PER : SANDEEP K. SHINDE, J) :
In exercise of the powers under Section 22(4) of the Banking Regulation Act, 1949 (hereinafter referred to as the BR Act), Reserve Bank of India vide order dated 30.12.2011 cancelled the Petitioner's licence to conduct banking business and issued mandate to stop "business of banking", within the meaning of Section 5(b) of the BR Act with immediate effect. This order was carried in appeal under Section 22(5) of the said Act before the Appellate Authority, i.e., Ministry of Finance (Department of Financial Services) Government of India. Appellate Authority vide order dated 23.4.2013 upheld the order of Shivgan 27/55 WP-1892-13.odt the Reserve Bank of India and as such, the appeal was dismissed.
2. Aggrieved by the order passed in Appeal as aforesaid, this Writ Petition is preferred by the Bank through its Chairman Mr. Kolur and by the Co-operative Bank Employees' Union under Article 226 of the Constitution of India.
3. Initially, Petition was filed against the authorities under the said Act and Maharashtra Co- operative Societies Act. Later in terms of the order dated 16.1.2014, directors and the borrowers, who allegedly siphoned the funds of the bank were impleaded as respondents nos.10 to 101. Deposit Insurance and Credit Guarantee Corporation has been impleaded as Respondent No.102 in terms of the order dated 21.2.2014. Events Shivgan 28/55 WP-1892-13.odt
4. On 3.10.2011 Chief Manager of the bank lodged a complaint with the Andheri Police Station, Mumbai and reported that financial position of the bank has worsened since many CC loan accounts of the huge amount were classified as NPA. He reported particulars of several irregularities committed while sanctioning loan. He further reported that Branch Manager Mr. Kadoli and Board of Directors in collusion with each other violated regulations of CC Limit and, misused their powers and disbursed loans without following rules. He reported 59 loan holders of Andheri Branch, Branch Manager Mr. Kadoli and officers of the Board in collusion with each other disbursed the loan of Rs.575020936 by forging the documents which resulted in huge loss to the bank. He reported act of cheating and misappropriation of funds by the Branch Manager and Members of Board. It resulted in registration of C.R. No.92 of 2011 under Sections 420, 409, 465, 467, 120B of the Indian Penal Code, 1860. Shivgan 29/55 WP-1892-13.odt
5. Commissioner for Co-operation, vide order dated 3.1.2012, appointed Board of Liquidators for winding up of affairs of the Petitioner-Bank, under Section 110-A (ii) of the Maharashtra Co-operative Societies Act, 1960 and directed Board of Liquidators to submit quarterly progress report to him, under the intimation to Deposit Insurance and Credit Guarantee Corporation.
6. Before dealing with the contentions raised by the petitioner-Bank, facts relevant for the present case to be stated are as under :
(i) On 22.8.1973, Petitioner-Bank was registered as Co-operative Society under the Maharashtra Co-
operative Societies Act, 1960 (hereinafter referred to as the 'MCS Act, 1960');
Shivgan 30/55 WP-1892-13.odt
(ii) On 26.3.1974, a licence was granted under Section 22 of the BR Act;
(iii) On 31.3.2006, 31.3.2007 and 31.3.2008, the Reserve Bank of India conducted statutory inspection of the bank with reference to its financial position. Pursuant to the said statutory inspection, Bank was advised not to extend area of operation; not to open new branches, not to declare dividend and also advised to refrain from paying interest, etc. Bank was advised to set up recovery efforts and maintain CD ratio at sustainable levels. Bank was also advised to explore the possibility of merger with sound bank.
(iv)Statutory audit with respect to financial position of the said bank as on 31.3.2009 was also conducted and was advised on 29.10.2009 not to resort to borrowings or allow pre-mature withdrawals of deposit;
Shivgan 31/55 WP-1892-13.odt
(v) On 8.2.2010 Enquiry Officer under Section 83 of the MCS Act reported that the bank had disbursed loans having insufficient mortgage security and lack of repayment capacity of borrowers (76 Loan Account) with total outstanding of 6253.44 Lakhs.
(vi) Statutory inspection with respect to its financial position on 31.3.2010 revealed that;
(a) Net worth stood at (-)3383.32 Lakhs and asset Capital Adequacy Ration (CAR) stood at ( - ) 53.2% against regulatory requirement of 9%.
(b) Erosion in deposit was to the extent of 15.9%.
(c) Gross and net NPAs formed 69.8% and 58.4% of gross and net advances respectively.
(d) Inspection report was forwarded to the Bank for rectification of deficiencies; however, RBI found compliance report was not satisfactory. Shivgan 32/55 WP-1892-13.odt
(e) Assets net worth as on 31.3.2011 was found at Rs.(-) 5231.01 Lakhs as against Rs.(-) 3383.32 Lakhs as on 31.3.2010 which indicate further deterioration in already precarious financial position of the bank.
(f) Recovery of NPA was not satisfactory;
(g) Quality of management was not satisfactory.
(h) Assets losses increased from 3180.78 Lakhs during 2009-10 to 3659.22 Lakhs during 2010-11.
7. In view of precarious financial position as revealed by Inspection report with reference to financial position as on 31.3.2011 and inability of the management to bring about improvement, Bank was placed under all inclusive directions under Section 35A of the BR Act with effect from close of business on 3.8.1011.
Shivgan 33/55 WP-1892-13.odt
8. Reserve Bank noted the following deficiencies in the functioning of bank ;
(a) Financial Position of the bank was precarious and there is no scope for revival. (emphasis supplied)
(b) Bank was not in a position to pay present and past depositors in full, as and when their claims accrue.
(c) Affairs of the bank were being conducted in the manner detrimental to its interest-depositers.
(d) Public interest would be adversely affected if the bank is allowed to carry on its banking business any further
(e) Bank did not comply provisions of Section 11(1), 22(3)(a) and 22(3)(b) of the BR Act.
9. In view of the aforesaid serious deficiencies and irregularities and deteriorating financial position of the said bank and upon the recommendations of the Task Force on Co-operative Urban Banks (TAFCUB) show-cause Shivgan 34/55 WP-1892-13.odt notice was issued to the bank requiring it to show cause as to why licence granted to it under Section 22 of the BR Act to carry on banking business should not be cancelled and bank should not be taken to liquidation. Thus, show-cause notice dated 17.8.2011 was issued. Bank replied said show- cause notice followed by additional replies/submissions. RBI after examining replies found the same was not satisfactory and thus reached a conclusion that allowing the bank to carry on business any further would be detrimental to the interest of the present and future depositors and as such, issued order dated 30.12.2011 for cancellation of banking licence.
10. The order dated 30.12.2011 was challenged in appeal before the Ministry of Finance but it met with same fate.
Shivgan 35/55 WP-1892-13.odt
11. Heard Mr. Sasi learned counsel for the Petitioner and Mr. Dhond the learned Senior Counsel for the Reserve Bank of India. Mr. Hatle, Mr. Patil, Mr. Mansuri and Mr. Patki, Additional Government Pleader for the other Respondents.
12. Mr. Sasi, the learned counsel for the Petitioner contended that, steps taken by the RBI for cancelling licencee were harsh and in breach of provisions of Section 22 of the said Act. He would submit that new committee of the Bank had taken charge on 31.3.2011 and immediately thereafter on 17.8.2011 show-cause notice was issued under Section 22 of the BR Act. He would submit that issuance of show-cause notice immediately after the new committee resumed the office is not a coincident. He would suggest, it was motivated action at the behest of some persons who harboured grudge against the new Committee. He would submit that, due procedure Shivgan 36/55 WP-1892-13.odt has not been followed while cancelling the licence of the Petitioner-Bank. The learned counsel has brought to our notice, provisions of Section 35(1A)(a) read with Sub- section (3) and would contend that procedure contemplated under Sub-section (3) was not followed in- as-much as person who has scrutinised the affairs of the banking company and its books and accounts has not examined on oath directors or other officers of the Bank in relation to its business. He would submit, it was gross irregularity. He would submit that new managing committee of the bank cannot be penalised for alleged illegalities of the earlier managing committee without affording opportunity to them. He would submit that it was only in March, 2011, new committee took over the office of the Bank and, therefore, Respondent-Authorities under the B.R.Act ought to have given opportunity to the newly elected body. He has drawn our attention to the affidavit dated 7.12.2017 filed by Mr. Shahaji M. Patil Shivgan 37/55 WP-1892-13.odt Chairman Board of Liquidator and would submit, bank has held sufficient Assets to absorb the liabilities. He made endeavour to submit facts and figures reflected in the affidavit of Board of Liquidator which according to him clearly indicates positive sign of revival of the financial position of the bank. In other words, he would contend that RBI failed to consider that the Bank's financial position is retrievable as its asset position is clearly on the higher side as against deposits to be repaid and that mere inability of the bank to immediately repay the deposits is not ground for cancellation of licence.
13. As against it, Mr. Dhond, learned Senior Counsel appearing for the RBI has taken us through the order dated 30.12.2011 and more particularly the paragraph 2 thereof. He has brought to our attention comparative table reproduced in the said order showing new worth of the bank as on 31.3.2009, 31.3.2010 and Shivgan 38/55 WP-1892-13.odt 31.3.2011. He has pointed out that in 2009 net worth was (-)2551.63 Lakhs whereas as on 31.3.2011 it declined to (-) 5231.11 Lakhs. He has also pointed out that CRAR ratio; which was (-) 35.4% as on 31.3.2009 which further declined to (-) 139.60 in March, 2011. He has also pointed out that net NPA was 13% as on March, 2009 which escalated to 33% in 2011.
. Besides, he has drawn our attention to provisions of Section 22(3)(a) which reads as under;
"A bank is or will be in a position to pay its present or future depositors in full as their claims accrue (emphasis supplied)."
. Mr. Dhond pointed out that deposit erosion was 33% as on March, 2011 which indicates petitioner-bank was not in a position to settle dues of its present depositors in full as and when their claims would accrue.
14. Mr. Dhond, Learned Senior Counsel would submit that, upon objective assessment of the statutory Shivgan 39/55 WP-1892-13.odt inspection reports, under Section 35, to its financial position as on 31.3.2010 and reports of earlier financial years, Respondents concluded that bank's operations were being carried on in the manner that was detrimental to the interest of the depositors and in violation of Section 22(3)
(b) of the Act. Besides he has brought to our notice inspection reports and the findings recorded in the order dated 30.12.2011. He would submit that, findings as found in paragraph 12 of the order dated 30.12.2011 are findings of facts recorded by the experts. He would submit that such findings in paragraph 12 are based on facts and figures as revealed upon inspection of books of the Petitioner-Bank. Mr. Dhond would also submit, Petitioners have not disputed facts, figures and finding recorded in the various inspection reports. He would submit that the RBI has concluded that financial position of the bank is precarious and there is no scope for revival. He has also drawn our attention to the conclusion, that "public interest Shivgan 40/55 WP-1892-13.odt would adversely affect if the bank is allowed to carry on its banking business in future". Mr. Dhond has also taken us through the order dated 23.4.2011 passed in Appeal by the Ministry of Finance.
15. Mr. Dhond has also pointed out directives issued on 2.8.2011 by the RBI under Section 35A of the BR Act. Mr. Dhond has vehemently submitted that in spite of directives issued by the RBI to the bank after carrying out inspection of its affairs, there was no improvement and having found management had not displayed sufficient seriousness in dealing with the staff responsible for the irregularities and having found board of directors were ineffective and are responsible for deterioration of financial position, authorities of RBI after receiving the recommendations of the Task Force on Co-operative Urban Banks (TAFCUB) issued a show-cause notice to bank and after following due procedure cancelled the licence. He Shivgan 41/55 WP-1892-13.odt would submit that the order is based on the objective- assessment of facts revealed in inspection carried out by the authorities for the period 2009, 2010 and 2011.
16. We have gone through the impugned orders and material placed on record by the Petitioners and Respondents. It reveals;
(1) Decision of the RBI to cancel the banking licence of the Bank was taken in the interest of the depositors.
(2) The RBI after satisfaction arrived at upon series of inspections and the reports that the affairs of the bank have been conducted in the manner detrimental to its present and future depositors and that public interest would adversely affect if the bank is allowed to carry on its banking business, cancelled the banking licence of the bank.
(3) That before taking this step, the RBI had Shivgan 42/55 WP-1892-13.odt given opportunities to the bank to rectify defects revealed in the inspection report of its affairs.
(4) As the Bank failed to rectify defects and improve its functioning, the RBI had no option but to cancel the licence.
17. Having heard the Bank and the Respondent authorities, we are required to answer following points;
(i) Whether order of cancellation of Petitioner's bank licence by the RBI is legal and valid ?
(ii) Whether future ability of the bank to pay its creditors but its inability to pay them at the given time would be a consideration to interfere with the administrative order cancelling banking licence of the Petitioner ?
(iii) Whether Petitioners have made out a case for review of administrative order of cancelling banking licence ?
Shivgan 43/55 WP-1892-13.odt
18. The material on record discloses that the officials of the RBI made a periodical statutory inspection of the bank in exercise of its powers under Section 35 of 1949 Act for the year ending March, 2009, 2010 and 2011. Material on record shows that with reference to financial position of the bank as on March 2006, 2007 and 2008, supervisory action was initiated vide letters dated 18.6.2007, 17.3.2008 and 3.7.2009 and the bank was advised not to extend the area of operation, open branches, declare dividend and not to resort to borrowings and pre- mature withdrawals. Authorities of the RBI found with reference to the Bank's financial position as on 31.3.2006 that vehicle loans granted in 145 cases, the lien endorsement obtained from RTO was found not to be genuine. Besides, enquiry under Section 83 of the MCS Act revealed fraud and misappropriation of funds at Kandivali Branch and irregularities in loans sanctioned at Andheri Shivgan 44/55 WP-1892-13.odt Branch. In the order dated 30.12.2011, such deficiencies and irregularities were noted by the officials of the RBI.
19. In the order dated 30.12.2011, cancelling the banking licence, officials of RBI have tabulated financial position as under:
Sr.No. Parameters Inspection
(as assessed) as on
March 31, 2009 March 31, 2010 March 31, 2011 1 Net worth (-)2551.63 (-)3383.32 (-)5231. 2 CRAR (-)35.4% (-)53.2% (-)139.6 3 Deposit 13.0% 15.9% 33.4 Erosion 4 Net profit/loss (-)3350.95 (-)3180.78 (-)3659.3 (-) 5 Gross NPA 7608.78 (57.6%) 8149.80(69.8%) 7633.36(79.1%) (%) 6 Net NPA (%) 4488.08 (44.4%) 4952.29(58.4%) 3449.51(63.0%)
20. It may be stated that the above facts and figures were not disputed by the Petitioners. We are, therefore, of the opinion that the above extracted deficiencies amply indicate that the affairs of the bank were conducted in the Shivgan 45/55 WP-1892-13.odt manner deterimental to the interests of the depositors.
21. Mr. Sasi the learned counsel for the Petitioner contended that affidavit-in-reply filed by liquidator clearly indicates that the bank is having mortgaged properties to ensure due recovery of all loans and the assets position of the bank being on higher as against deposits to be repaid, this Court may interfere with the order impugned. He would further contend that merely because bank was not in a position to immediately repay its depositors cannot be a ground for cacelling the licence.
. Division Bench of the Andhra Pradesh High Court in the case of Reserve Bank of India v. Pattem Surya Prakash Rao and Ors. while dealing with the identical contention has held in paragraph 72 as under:
"72 Shri Vedula Srinivas contended that since the Bank is having mortgaged properties to ensure due recovery of all the loans and that the asset position of the bank is clearly on a higher side as against the deposits to be repaid, there is no justification in cancelling the bank's licence, merely because it is not in a position to Shivgan 46/55 WP-1892-13.odt immediately repay the deposits. We do not feel persuaded to accept this contention, because it is in the teeth of the above reproduced observations of the Supreme Court in para-22 of the Judgment in Joseph Kuruvilla Vellukunnel MANU/SC/0057/1962 that interest of the depositors must be paramount and the action for winding up of a bank is dictated not from any abstract consideration of a long range view of future ability of the Bank to pay its creditors but its ability to pay them at any given time. One of the main grounds for cancellation of the bank's licence as reflected in the show cause notice is that the bank is not in a position to pay its present and future deposits and the financial position of the bank leave little scope for its revival. That the Bank's inability to repay the deposit amounts to its creditors is not disputed either in the pleadings of the Depositors Association or of Sri Pattern Suryaprakash Rau who filed two different writ petitions or by the learned Counsel appearing for them."
. That even otherwise herein the Bank's financial position was deteriorating since six years before the date on which banking licence was cancelled as evident from the observations in paragraphs 2 and 3 of the order dated 30.12.2011. In the case in hand, the RBI found large deterioration in the profitability of the bank and the NPA arose from 44% to 63% within the span of two years. . Be that as it may, as held by the Division Bench of Shivgan 47/55 WP-1892-13.odt Andhra Pradesh High Court in Reserve Bank of India (Supra) "...likely future ability of the bank to pay its creditors cannot be said to be consideration for interfering with the order impugned in this Petition".
We , therefore, reject this contention also.
22. Learned counsel for the Petitioner has argued the procedure in terms of Section 35(3) of the B.R.Act has not been followed, however, he could not point out, how non-compliance of said provision has caused prejudice to the Bank. In fact, during the course of the arguments, the learned counsel has not disputed facts and figures as re- produced in the order dated 30.12.2011 that of net worth; deposit erosion, net profit, gross NPA, net NPA, CRAR, net NPA of the bank. Material on record indicates that before cancelling licence, ample opportunities were given by issuing directives under Section 35-A of the Act and also by supervisory actions vide letters dated 18.6.2007, 17.3.2008 and 3.7.2009. Besides, there was a report under Section 83 Shivgan 48/55 WP-1892-13.odt of the MCS Act pointing out gross irregularities and illegalities committed by the then Board of Directors. It cannot be overlooked that crime has been registered against the branch manager, managing committee of the bank and account holders with whom bank officials colluded and siphoned huge funds of the bank. Offence is thus, registered for causing/misappropriating the bank's property. Thus, upon taking the survey of the material evidence on record brought by the officials of the RBI, officers of the Co-operation Department and in the course of the investigation of the crime, we are of the view that the conclusions/findings recorded by the RBI officials in paragraph 12 of its order dated 30.12.2011 cannot be interfered with. We, therefore, hold that the order dated 30.12.2011 passed under Section 22(4) of the BR Act, 1949 is based on the report of the expert bodies and it cannot be faulted with on any count.
Shivgan 49/55 WP-1892-13.odt
23. On the scope of Court's interference with the decision of the expert bodies, it is settled law that "Courts are not to interfere with economic policy which is the function of experts. It is not the function of the Courts to sit in judgment over matters of economic policy and it must necessarily be left to the expert bodies. In such matters even experts can seriously and doubtlessly differ. Courts cannot be expected to decide them without even the aid of experts."
24. Thus, we are of the opinion that authorities have taken into account relevant factors and on objective assessment of functioning of the bank cancelled the licence. We do not find any illegality, irrationality or procedural improbability in the decision making process. More so, the order being administrative in nature while exercising power of the judicial review is only concerned with the decision making process and not merits of the decision since the orders impugned herein are based on the Shivgan 50/55 WP-1892-13.odt facts and figures, financial position and functioning of the affairs of the bank. No procedural irregularity or impropriety has been pointed out by the Petitioners in the decision making process which culminated into cancellation of banking licence. In our view, this decision is taken in the best interest of depositors and, therefore, answer the points accordingly.
25. Before concluding the judgment, it is to be noted that during the pendency of this Petition, fifteen account holders/shareholders of the Petitioner-Bank have filed Chamber Summons No.79 of 2014 seeking intervention in the Petition and for impleading themselves as party respondents. It appears from the affidavit-in- support filed by the applicants that they were of the view that RBI ought not to have cancelled the licence, instead directed the bank officials and the authorities under the Maharashtra Co-operative Societies Act to expedite the Shivgan 51/55 WP-1892-13.odt recovery proceedings. The applicants are of the view that cancellation of the banking licence was not a solution to overcome situation and RBI ought to have take some steps to merge the Petitioner-Bank with some other co-operative bank. Applicants have also made grievance about the functioning of board of liquidators. They have averred in paragraph 32 that value of the immovable property being more than 200 crores, revival of the bank is possible. They urged that committee consisting of representatives of the shareholders/depositors of the Petitioners and of the Government be constituted to look after affairs of the bank.
. Though the Chamber Summons was filed in March, 2014, no steps were taken by the applicants therein to pursue the same. None appeared when the petition was heard finally. In view of this, we dismiss the Chamber Summons being rendered infructuous. Shivgan 52/55 WP-1892-13.odt
26. Yet, another Application/Notice of Motion No.180 of 2017 is filed by the Petitioners seeking a relief/direction to constitute a committee of experts to assist the investigating officers, ACP, Economic Offence Wing and also authorised officer under Section 80 of the MCS Act. Though this Notice of Motion was filed on 8.5.2016, it was not pursued, it is rendered infructuous.
27. Deposit Insurance and Credit Guarantee Corporation has filed Notice of Motion No.110 of 2015 seeking directions to the liquidator to file statement of accounts as per the provisions of the Deposit Insurance and Credit Guarantee Corporation Act, 1961. The learned counsel appearing for the Credit Guarantee Corporation has not pressed this Notice of Motion. That as such, Notice of Motion No.110 of 2015 stands disposed of. Shivgan 53/55 WP-1892-13.odt
28. It may be stated that the board of liquidators appointed under the provisions of MCS Act has filed affidavit of one Shahaji M. Patil, Chairman of the Board of Liquidator. Vide affidavit dated 6.12.2017, he has placed on record facts and figures and status of liquidation process as on 30.09.2017. It appears from the affidavit that board of liquidators is functional and taking effective steps to complete the liquidation process. However, there being voluminous documents and multiple proceedings, it appears inquiry is not likely to conclude in near future. Be that as it may, this Court has not examined whether the board of liquidators is functioning effectively for concluding the liquidation process. It appears from the applicants in Chamber Summons No.79 of 2014 that some of the members/account holders of the Petitioner-Bank have expressed their concern about the functioning of the board of liquidators. Though we have dismissed the Chamber Summons No.79 of 2014 being rendered Shivgan 54/55 WP-1892-13.odt infructuous, we keep all the contentions of the Applicants in the said Chamber Summons open so as to enable them to make the grievance , if any, against board of liquidators concerning liquidation proceedings in appropriate proceedings as they deem fit and proper. We further make it clear that all issues concerning liquidation proceedings (not being a subject matter of petition) are kept open to challenge by persons interested and/or who is aggrieved or likely to be aggrieved by the orders passed and actions taken by the Board of Liquidators in the liquidation proceedings of the Petitioner-Bank. . That for the reasons stated here-in-above, Writ Petition is dismissed with no order as to costs. Digitally (SANDEEP K. SHINDE, J) (K. K. TATED, J) signed by Shambhavi Shambhavi Nilesh Nilesh Shivgan Shivgan Date:
2018.10.06 10:55:41 +0530 Shivgan 55/55