IMPORTANT POINT
Entities that default on financial obligations can be classified as financial establishments under the MPID Act, and notifications for property attachment to protect depositor interests are valid even if the entities contest their classification.

JUDGMENT/ORDER

G.S.PATEL J., J. - Writ Petition No. 403 of 2023 is filed by a corporate entity Lotus Refineries Private Limited ("Lotus Refineries") and one Arun Kumar Sharma, its managing director. The reliefs sought are at page 29:

"(a) Issue a writ of mandamus or any other appropriate writ/s or orders/directions to quash the notifications dtd. 28/8/2014, 22/6/2015, 13/1/2016 and 2/1/2019, issued by the Respondent No.1, under Sec. 4(1), 5(1), 8 and 12 of Maharashtra Protection of Interest of Depositors (in Financial Establishment) Act, 1999, qua petitioner (whereby the Respondent No.1 attached the movable and immovable properties of the Petitioner No. 1 and 2, by invoking Sec. 4(1), 5(1) and 8 of the Act ibid), being ultra vires to the provisions of Article 246 read with Entry No. 48 of List-1 of 7th Schedule of Constitution of India, Article 300A of Constitution of India, provisions of Sec. 2(c), 2(d), 3, 4(1), 5(1), 8 and 12 of MPID Act, 1999 and Sec. 2(12), 2(24) and 6 read with Entry No. 68 and 102 of Schedule-C of Maharashtra Value Added Tax Act, 2002.

(b) declare that the Petitioner No.1 is not Financial Establishment in terms of Sec. 2(d) of the MPID Act and the amount paid by buyers of goods at spot trading at electronic platform of National Spot Exchange Ltd, towards transaction to the Petitioner No.1, is not deposit in terms of Sec. 2(c) of MPID Act, 1999.

(c) stay the operation and execution of notifications dtd. 28/8/2014, 22/6/2015, 13/1/2016, and 2/1/2019, issued by the Respondent No1, qua Petitioners, till the final disposal of the instant petition."

2. Writ Petition (L) No. 26896 of 2022 is by another commercial entity, a partnership firm called Namdhari Rice and General Mills ("Namdhari Mills"). No individual is joined as the second Petitioner. This may have some bearing on the last submission made before us, noted below. Prayer clauses (a), (b) and (c) are virtually identical to those in the Lotus Refineries Petition. They read thus.

"(a) Issue a writ of mandamus or any other appropriate writ/s or orders/directions to quash the notifications Exhibit "EE" and Exhibit "FF", dtd. 28/8/2014, 22/6/2015 and 2/1/2019, issued by the Respondent No.1, under Sec. 4(1), 5(1), 8 and 12 of Maharashtra Protection of Interest of Depositors (in Financial Establishment) Act, 1999, qua petitioner (whereby the Respondent No.1 attached the movable and immovable properties of the Petitioner and their partners, by invoking Sec. 4(1), 5(1) and 8 of the Act ibid), being ultra vires to the provisions of Article 246 read with Entry No. 48 of List 1 of 7th Schedule of Constitution of India, Article 300A of Constitution of India, provisions of Sec. 2(c), 2(d), 3, 4(1), 5(1), 8 and 12 of MPID Act, 1999 and Sec. 2(12), 2(24) and 6 read with Entry No.20 of Schedule-C of Maharashtra Value Added Tax Act, 2002.

(b) declare that the Petitioner is not Financial Establishment in terms of Sec. 2(d) of the MPID Act and the amount paid by buyers of goods at spot trading at electronic platform of National Spot Exchange Ltd., towards transaction to the Petitioner, is not deposit in terms of Sec. 2(c) of MPID Act, 1999.

(c) stay the operation and execution of notifications dtd. 28/8/2014, 22/6/2015 and 2/1/2019, issued by the Respondent No.1, qua Petitioner, till the final disposal of the instant petition."

3. We do not understand why the Namdhari Mills Petition is as yet on a lodging number. All objections are to be removed by Friday, 11/2/2023. If not, for this reason alone, there will be an order of costs against Namdhari Mills in the amount of Rs.15, 000.00 payable to National Spot Exchange Limited ("NSEL").

4. Interim Application No. 160 of 2023 is by the National Spot Exchange Limited. It seeks impleadment. This is opposed.

5. As the prayers themselves indicate, both Lotus Refineries and Namdhari Mills assail Notifications dtd. 28/8/2014, 22/6/2015, 13th June2016 and 2/1/2019 under the Maharashtra Protection of Interest of Depositors (In Financial Estab