JUDGMENT :

SUNIL B. SHUKRE, J.

1. RULE. Rule made returnable forthwith. Heard finally by consent of learned counsel for the parties.

2. By this petition, the petitioner, a registered Co-operative Spinning Mill, has questioned legality and correctness or otherwise of the action of the Reserve Bank of India, respondent no. 1, in imposing certain restrictions on respondent no. 3, a registered Co-operative Bank and a banking company within the contemplation of the Banking Regulation Act, 1949 (for short “Act of 1949”) in making investments, refunding deposits, incurring any liability and so on and so forth without prior approval of respondent no. 1-RBI.

3. The petitioner contends that it being a Co-operative Spinning Mill, it has compulsions to maintain all its accounts and deposits with a Co-operative Bank like the respondent no. 3. It submits that it had initially deposited an amount of Rs.11 crores from out of its working capital in the fixed deposits in the year 2017 with the respondent no. 3 and against these deposits, the respondent no. 3 granted overdraft facility to the petitioner. The petitioner submits that since then the petitioner was diligently utilizing the overdraft facility