Jindal Cocoa Llp vs Reserve Bank Of India

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Bom) 83

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
B.P. COLABAWALLA, SOMASEKHAR SUNDARESAN, JJ.
Jindal Cocoa Llp – Appellant
Versus
Reserve Bank Of India – Respondent

Advocates Appeared:
Mr. V. Sridharan, Senior Advocate, a/w Gopal Machiraju, Krusha
Maheshwari, Ruchi Wagaralkar, i/b Sriram Sridharan, Advocates
for Petitioners.
Mr. Y.R. Mishra, a/w Upendra Lokegaonkar, Shailendra Y.
Mishra, Advocates for Respondent No.2-UoI.
Mr. Prasad Shenoy, a/w Parag Sharma, Aditi Pathak, Vijay
Salokhe, Kirti Ojha, Megha More, Ankit Upadhyay, i/b BLAC &
Co., Advocates for Respondent No.3.
Mr. Mustafa Doctor, Senior Counsel, a/w Gaurav Mehta,
Chaitanya Mehta, Amir Ali Shaikh, Tanjul Sharma, i/b Dhruve
Liladhar & Co., Advocates for Respondent No.4.

JUDGMENT :

Somasekhar Sundaresan, J.

1. Rule. Rule is made returnable forthwith. Respondents waive service. By consent, heard finally.

Introduction:

2. This Petition essentially challenges the interpretation of the Reserve Bank of India’s Master Circular on Rupee/Foreign Currency Export Credit & Customer Service to Exporters , dated July 1, 2015 (“ Master Circular ”) by the Banking Ombudsman (Respondent No.3) appointed by the Reserve Bank of India (Respondent No.1, “ RBI ”). The Banking Ombudsman dismissed the Petitioners’ grievance against the very same interpretation that had been taken by HDFC Bank Limited (Respondent No.4, “ HDFC Bank ”).

3. Jindal Cocoa LLP (“ Borrower ”), is a limited liability partnership engaged in the business of exporting cocoa and cocoa products. HDFC Bank had extended Indian Rupee-denominated pre- shipment credit by way of a running account facility under the Master Circular to the Borrower. The Borrower, along with its two partners Mr. Vijay Jindal and Ms. Jayshree Vijay Jindal, are collectively the Petitioners.

Regulatory Context and Background:

4. Under the Master Circular, banks extend credit to their clients who are exporters, at a special interest rate a