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2024 Supreme(Mad) 930

SANJAY V. GANGAPURWALA, D. BHARATHA CHAKRAVARTHY
AUM Capital Market Pvt. Ltd. – Appellant
Versus
Union of India – Respondent


Advocates:
Advocate Appeared:
For the Appellant : Mr.Arvind P.Datar, Senior Counsel & Mr.P.S.Raman, Senior Counsel for M/s.Ramaswamy Meyyappan, Mr.Viyyash Kumar, Mr.Arjun Suresh, Mr.Rohit Rajerishi & Mr.Ankur Kashyap, Mr.Kunal Katariya assisted by Ms.Rohini Ravikumar & Mr.Ayush Agarwala, Dr.M.R.Venkatesh, Ms.Ramya Subramaniam, Mr.T.D.Selvan Babu, Mr.T.K.Bhaskar, Mr.Pranav.G, Ms.Pranaya Dayalu & Mr.P.Arvind, Mr.C.V.Shailandran, Mr.Jayesh B.Dolia Senior Counsel for M/s.Aiyar and Dolia, Ms.Narmada Sampath, Mr.B.Dhanaraj, Mr.K.Ramanraj, Mr.J.R.K.Bhavanantham, M/s.Swaminathan Law Associates, Mr.Ilaya Perumal, Mr.K.Prabhakaran, Mr.Sudhir Kathpalia, Mr.Sharath Chandran assisted by Ms.Gobika Nambiar for M/s.Govind Chandrasekhar, Mr.Deepak Bhaskar & Associates, Mr.Shreyas Jayasimha, Ms.Lakshmi Menon, Mr.Udaya Holla, Mr.Naman Jhabakh, Ms.Abitha Banu & Mr.Vivek Holla, Mr.P.H.Arvind Pandian Senior Counsel assisted by Ms.Harshini Jothiraman & Mr.Arjun Suresh, Mr.V.P.Raman for Mr.M.S.Seshadri, Mr.K.Seshasayee, Mr.R.B.Rishab, Ms.Girija.G.P. & Ms.Shambhavi.G.P, Ms.Preeti Mohan, Ms.R.S.Pornima & Ms.Dhruti Lanker, Mr.N.V.Balaji, Mr.N.V.Lakshmi & Mr.N.V.Narayanan, Mr.V.Adhivarahan, Mr.I.Murugan for Mr.Thirunavukkarasu, Mr.Arjun Suresh, Ms.D.Harini Yadav, Mr.V.Adhivarahan
For the Respondent: Mr.AR.L.Sundaresan Additional Solicitor General assisted by Mr.K.S.Jeya Ganesh, Mr.B.Sudhir Kumar, Central Govt. Standing Counsel, Mr.V.Chandrasekar, Senior Panel Counsel, Dr.D.Simon, Central Govt. Standing Counsel, Mr.Rajesh Vivekandandan Additional Solicitor General, Mr.Vijay Narayan, Senior Counsel for Mr.P.Giridharan assisted by Mr.Vivek Shetty, Mr.Nishant Upadhyay, Mr.C.Thiagarajan, Mr.Dhavel Vora & Mr.Dominic S.David, Ms.R.Uma Suthan, Mr.R.Parthasarathy, Mr.Satish Parasaran, Senior Counsel, Mr.R.V.Easwar Senior Counsel for Mr.Suhrith Parthasarathy, Ms.Veena Sivaramakrishnan, Mr.Siddhant Kant, Ms.Apeksha, Mr.Dhananjai Charan, Ms.Disha Khandelwal Amritha.S. & Mr.Rohit Garg, Mr.R.Palaniandavan, Mr.V.Shivkumar for M/s.Shivakumar & Suresh

Table of Content
1. petition challenges rbi's amalgamation scheme (Para 1 , 2)
2. shareholders contest rbi's actions and decision-making process (Para 3 , 4 , 5 , 6 , 7 , 8)
3. court's overview of rbi's regulatory framework (Para 9 , 10 , 11)
4. determining the legality of share value reduction and write-offs (Para 12)
5. court orders rbi to reassess share valuations and bond write-offs (Para 14 , 15)

ORDER :

THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE

Prayer in W.P.No.17521 of 2020: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorarified mandamus, quashing the impugned amalgamation scheme,G.S.R.No.731(E) dated 25.11.2020 notified by the 1st respondent and the consequent press release of the 2nd respondent dated 25.11.2020 and the impugned moratorium order, S.O.4127 dated 17.11.2020issued by the respondent 1 or any other revised Scheme without a consultative process or re-examination of the valuation or through a price discovery by an open, fair and transparent bidding process byway of a public announcement or in the alternative issue a mandamus directing that the shareholders of the 3rd respondent bank should be treated as the sha

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