Puraswalkam Santhatha Sanga Nidhi Ltd. ... vs Reserve Bank Of India Of Others on 29 October, 1996
44. It has been contended by the petitioners that the clarification issued on August 24, 1996, is absolutely useless because none of the nidhi companies can show a net owned fund sufficient enough to claim the ratio of 1 : 20. According to the petitioners, it is impossible of performance and incapable of compliance. Therefore, it is argued that the entire notification is arbitrary. The above difficulty as experienced by the nidhi companies cannot be cited as ground for nullifying the impugned notifications. One has to keep in mind the observations of the Supreme Court in Jalan Trading Co. v. Mill Mazdoor Sabha, . Equally unacceptable is the argument of learned senior counsel for the petitioners that it is open to the respondents to take necessary action against the defaulting nidhi companies and not to impose restrictions on all the nidhi companies because of one or two defaulting members. I have already adverted to the fact that the respondents have already undertaken a study and the restrictions have been imposed only on the basis of such a study. It is not open to the court to hold that the study itself is defective and that, therefore, the consequences of the study in the shape of the impugned notification has got to be struck down. One has to remember that in such financial activities the Reserve Bank of India has to innovate and implement new schemes or regulations and where necessary they do not hesitate to amend or modify the regulations or schemes. It is always on a trial and error basis.