Judgment

S.N. VARIAVA, J.- This writ petition has been filed challenging a 9 scheme framed by Reserve Bank of India (for short RBI). Mr Lalit very fairly stated at the beginning that he is not challenging the Scheme and that the only prayer he is pressing is prayer (g), which reads as follows:

"(g) Issue a writ or order in the nature of mandamus directing the respondents to repay the petitioners and other fixed-deposit holders of the erstwhile Sikkim Bank Ltd. in full, including the principal along with h the contract rate of interest (14 p.a.)."

2. At this stage, the facts may be briefly set out:

On 2-8-1985 Sikkim Banking Overseas Corporation Limited got itself registered as a company in Sikkim. On 22-10-1987 its name was changed to Sikkim Banking Limited (for short SBL). On 11-12-1987 the Banking Regulation Act (for short the Act) became applicable to Sikkim. Section 22 of the Act reads as follows:

"22. Licensing of banking companies.-(l) Save as hereinafter provided, no company shall carryon banking business in India unless it holds a licence issued in that behalf by the Reserve Bank and any such licence may be issued subject to such conditions as the Reserve Bank may think fit