New Delhi [India], December 22 (ANI): The Supreme Court has issued a notice on the Reserve Bank of India's plea seeking to transfer all cases related to the merger of Lakshmi Vilas Bank (LVB) with DBS Bank India pending before various High Courts to one location.
A bench headed by Justice Mohan M Shantangoudar last week sought responses from those who have filed petitions before the various High Court and posted the matter for further hearing in January 2021.
Five cases are pending before the Delhi High Court, Madras High Courts, Karnataka High Court and Bombay High Court challenging the Lakshmi Vilas Bank Limited (Amalgamation with DBS Bank India Limited) Scheme, 2020.
The plea, filed in the apex court by the RBI, sought the transfer of the pleas to one location from the various High Courts for consolidation of the issues involved and to prevent multiplicity of proceedings, inconsistency in decision making and to save precious judicial time.
The transfer plea has questioned whether the High Court can alter an amalgamation scheme issued by the Central government, under Section 45 of the Banking Regulations Act, in the exercise of its extraordinary jurisdiction.
The amalgamation Scheme was issued by the Central Government under Section 45 of the Banking Regulation Act, 1949, but was challenged before various High Courts.
"Inter alia, the issue involved also includes whether an Amalgamation Scheme under Section 45 of the Banking Regulations Act which is required to be laid down before both the Houses of Parliament, can be challenged for having been passed in haste," the RBI said in its plea.
It said that the great prejudice may be caused to the petitioner and all stakeholders involved because of parallel proceedings and that it is may result in inconsistent and contradictory decisions or directions, which may hard the interest of depositors.
It asked whether the High Court in the exercise of its extraordinary writ jurisdiction sit in appeal over the decision of a financial regulator namely RBI which has recommended the Amalgamation Scheme in the interest of the depositor.
In November, the Union Cabinet had approved the merger of capital-starved Lakshmi Vilas Bank (LVB) with DBS Bank India. (ANI)