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IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
Smt. Justice Rajani Dubey, Shri Justice Narendra Kumar Vyas, JJ
Reserve Bank Of India A Body Established Under Reserve Bank OfIndia Act, 1934, Through Its Authorized Signatory Shri Amit Kumar,Assistant General Manager, Department Of Non Banking Supervision, Reserve Bank Of India, Bhopal – Appellant
Versus
Samruddhi Saving And Investment (I) Ltd. – Respondent
JUDGMENT :
(Narendra Kumar Vyas, J.)
1. This appeal has been preferred by the appellant-Reserve Bank of India being aggrieved with the Order dated 24.11.2017 passed by Single Bench of this Court in Company Petition No. 2/2004 whereby the learned Single Judge has dismissed the petition on the count that petition for winding up under Section 45-MC of the Reserve Bank of India Act, 1934 read with provisions of the Banking Regulation Act, 1956 is not maintainable.
2. The brief facts as reflected from the record are that the appellant/RBI is a statutory regulating authority for Non-Banking Financial Companies (NBFCs) empowered under Chapter III B of the Act (as amended by the Reserve Bank of India (Amendment) Act, 1997) for issuing certificate of registration to NBFCs, prescribing Prudential Norms, issuing Directions, prohibiting NBFCs from accepting deposits, filing winding up petitions etc. The respondent Company has been carrying on the business of receiving deposits under different schemes and was classified by the RBI as a Residuary Non Banking Company (RNBC). The respondent Company has been issued a memo dated 19th December, 1992 advising the company of its classification as a RNBC i
A winding up petition under Section 45-MC of the RBI Act is not maintainable against a company that is not registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India.
A winding up petition under the RBI Act is not maintainable against a Non-Banking Financial Company that is not registered with the RBI.
The judgment established the absolute nature of meeting fixed criteria in financial legislations, the limited scope of judicial review in economic decisions, and the importance of adhering to statuto....
Important points:The power granted to the RBI for cancellation of Registration is discretionary, the petitioner cannot be heard to contend that the RBI is bound to cancel the Registration of a non-ba....
A scheme of arrangement under Companies Act cannot be approved if it violates mandatory provisions of the RBI Act, particularly when non-disclosure of regulatory violations undermines the process.
Chapter III-B of the RBI Act is a complete code in itself and the power of intervention available for the RBI over NBFCs, is from the cradle to the grave.
The court established that the petitioner remains a financial service provider under IBC, rendering its CIRP application non-maintainable due to the exclusion clause.
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