Calcutta High Court
Sanchayani Savings And Investment ... vs Reserve Bank Of India on 21 July, 2016
Author: Soumen Sen
Bench: Soumen Sen
ORDER SHEET
CP No.211 of 2015
IN THE HIGH COURT AT CALCUTTA
Original Jurisdiction
ORIGINAL SIDE
IN THE MATTER OF:
SANCHAYANI SAVINGS AND INVESTMENT (INDIA) LIMITED
AND
RESERVE BANK OF INDIA
BEFORE:
The Hon'ble JUSTICE SOUMEN SEN
Date: 21st July, 2016.
Appearance:
Mr. Rajasekhar Mantha, Sr. Adv., Mr. A. Dey, Advocates appear.
Mr. L.K. Gupta, Addl. Adv. Gen. .....for R.B.I. Mr. Aniruddha Roy, Adv., Mr. B. Basu Mallick, Adv., ....for the company.
Mr. S.N.Mookherjee, Sr. Adv., Mr. Kaushik Banerjee, Ms. R. Ghosh, Ms. N. Adhya, Advocates ...for the purchaser Mr.Ajay Kr. Patni, Mr. Pramit Kr. Ray, Sr. Adv., Mr. Arik Banerjee, Mr. Rajib Mullick, Mr. S. Roy Chowdhury, Ms. S. Chakraborty, Advocates ...for M/s. Belapur Sun City Cooperative Housing Society Ltd.
Mr. Sakya Sen, Mr. Suvadeep Sen, Advocates .......for Special Officer.
The Court:- The Reserve Bank of India has filed an application for winding up under Section 45MC of the Reserve Bank of India Act, 1934 (hereinafter referred to as the "RBI Act"). The company has taken a preliminary objection as to the maintainability of the petition on the ground that the provisions of the RBI Act are not applicable to the company. It is submitted by Mr. Aniruddha Roy, Advocate on behalf of the Company that the company is not a Non-banking financial company. 2
The company Sanchayani Savings & Investment (India) Limited is essentially an investment company. The principal business of the company was to borrow money from public by accepting public deposits and to invest the same in properties, shares and various other forms. The said activity squarely comes within the mischief of Section 45-IA of the Reserve Bank of India Act, 1934. It is a Non-banking financial company within the meaning of Section 45-IA(f) of the Reserve Bank of India Act, 1934. The said company continues with its business of receiving deposits from public without obtaining a licence and registration from the Reserve Bank of India. The application filed by the Reserve Bank of India under Section 45MC of the RBI Act discloses documents including the show-cause notice whereby the company was prohibited from accepting any such deposit. On an inspection caused by the RBI, it was found that the company had violated various provisions of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998. RBI has also issued a show-cause notice. The company failed to give a satisfactory reply nor it has made good the monies received by carrying such unauthorized business.
The RBI refused to grant licence and registration in view of several irregularities noticed in the functioning of the company. Hence, once the company becomes disqualified to carry on Non-banking financial business, there could be no other activity left open to the company to 3 carry on. The company had also failed to repay the depositors on maturity.
Under such circumstances, in public interest, the Reserve Bank of India by invoking its statutory power under Section 45MC of the Reserve Bank of India Act, 1934 filed this application for winding up of the company. There cannot be any doubt that monies were received by the company without having proper registration and licence. The inspection report disclosed in this proceeding, forms part of the communication dated 23rd November, 1994 and subsequent communications show that the apprehension expressed by the Reserve Bank of India with regard to the financial stability of the company was not unfounded, inasmuch as the company, in the first place, could not have carried on such business of accepting deposit without prior permission of the Reserve Bank of India. Refusing to grant any licence by Reserve Bank of India is also not under challenge.
In any event, the company could not have accepted any deposit after the show-cause notice or continued with such business of accepting public deposit. On such consideration, the winding up petition filed by the Reserve Bank of India in exercise of its power under Section 45MC is admitted. It appears from the order disclosed in this proceeding, M/s. N.C. Banerjee & Company, Chartered Accountants, Commerce House, 2 Ganesh Chandra Avenue, 1st Floor, Room No.9, Kolkata - 700 013 was appointed as Special Officer to take charge of the assets of the company. 4
The learned Additional Advocate General appearing on behalf of the Reserve Bank of India, on instruction, submits that the Special Officer has taken possession of large number of assets of the company, but the process is still continuing. During the pendency of this proceeding, the Special Officer appointed by the Hon'ble Supreme Court has made disbursements to various depositors on scrutiny of the claims and this Court is informed that such disbursements were made after obtaining leave from the Court. The report filed by the Special Officer has given the present status of the claim applications, which shows that a staggering figure of Rs.388.58 crores is due and payable to various applicant depositors. The Special Officer has made payment to depositors under Category 1 and 2 after obtaining leave from the Hon'ble Supreme Court. It further appears from the report that a sum of approximately Rs.50 crores representing the principal amount has been paid to 524148 depositors and subsequent payment to depositors under Category 2 to 5 has been made in terms of order dated 14th June, 2016.
The Reserve Bank of India, pursuant to the order dated 5th October, 2015, has already advertised the petition in two English Newspapers, a Bengali daily and a Hindi daily and pursuant to such advertisements, none has come forward either to oppose or to support the winding up petition. However, the fact remains that large sums of money are due and payable to the depositors and the Special Officer is in the process of disbursing fund to the depositors. The Special Officer is 5 directed to take charge of the remaining assets of the Company forthwith. RBI is directed to render necessary assistance to the Special Officer in taking possession of the assets of the Company as well as for collecting the book debts of the Company.
The Special Officer shall complete the process of disbursement of funds pursuant to the order dated 14th June, 2016 within a period of six months from date and shall file a compliance report.
The Special Officer was appointed by the Hon'ble Supreme Court is to function as a Liquidator for the purpose of winding up of the Company in question.
C.P. No.211 of 2015 stands adjourned for six months. Prayer for stay of operation of the order by the Company is considered and refused.
(SOUMEN SEN, J.) nm/pa