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2024 Supreme(Online)(Bom) 5663

HIGH COURT OF BOMBAY
Bharati Dangre, Manjusha Deshpande, JJ
HDFC Bank Limited – Appellant
Versus
State of Maharashtra – Respondent
WRIT PETITION (L) NO.23881 OF 2024



Advocates:
For the Appellants/Petitioners: Shirish Gupte, Kevic Setalvad, Dharam Jumani, Jehan Lalkaka, Mihir Nerurkar, Prapti Kedia, Rushikesh Dusane, Neha Ravlela, Amit Singh, Anasamah Sayed
For the Respondents: Sheetal Malvankar, A.Y.Sakhare, Rohan Mirpury, Yogesh Patil, Abad Ponda, Kushal Mor, Marmik Shah, Abhishek Prabhu, Asim Mohd, Chitlesh Dalmia, Jyoti Ghag, Shailesh Prajapati

A commission for minority rights serves a recommendatory role rather than an adjudicatory one. It lacks the jurisdiction to interfere in private commercial disputes or ongoing valid legal proceedings, and its notice issued in such matters is subject to judicial review under writ jurisdiction for being ultra vires.

Headnote:(A) Maharashtra State Minorities Commission Act, 2004 - Section 10 and 10A - Scope of jurisdiction - Commission lacks power to adjudicate upon any dispute or lis or to pass any executable order - Commission is an recommendatory body - It cannot be used to short-circuit or obstruct legal proceedings or recovery processes pending before competent tribunals. (Paras 19, 21, 22, 25)

(B) Writ jurisdiction - Article 226 of the Constitution of India - Maintainability of petition against show-cause notice - Where an authority acts clearly without jurisdiction or in violation of principles of natural justice, High Court can entertain a writ petition despite availability of alternative remedies or the argument of prematurity. (Paras 16, 17, 18, 23)

Facts of the case:
The petitioner, a banking entity, initiated recovery proceedings against a debtor. Following the issuance of a recovery certificate and pending execution of arrest warrants, the debtor filed a complaint before the state-level commission for minorities, alleging mental and physical harassment by the management and accusing key officials of participating in a conspiracy. The commission issued a notice for hearing, which the petitioners challenged in the current writ petition, citing the commission's lack of jurisdiction over such matters.

Findings of Court:
The court held that the commission's role is restricted to examining social safeguards and making recommendations for their implementation. It does not possess the status of a civil court for adjudicating private disputes or the legality of commercial recovery actions. Attempting to use the commission to circumvent lawful orders or debt recovery processes is an abuse of process.

Issues: Whether a commission constituted for the protection of minority rights has the jurisdiction to entertain a complaint involving a private financial recovery dispute and whether a writ petition challenging a show-cause notice issued by such a body is maintainable.

Ratio Decidendi: The court ruled that the commission’s enabling statute does not confer adjudicatory powers to interfere with judicial or quasi-judicial orders. As the notice was issued without legal foundation and fell outside the scope of the commission's statutory mandate, the issuance of such notice constitutes an excess of jurisdiction, rendering the petition maintainable despite claims of being premature.

Result: Writ petition allowed; the impugned notice is quashed and set aside.

Table of Content
1. procedural history and nature of requested relief regarding the commission's notice. (Para 1 , 2 , 3 , 7)
2. factual background: debt recovery proceedings versus alleged minority rights harassment. (Para 4 , 5 , 6 , 8)
3. arguments on commission's jurisdiction and maintainability of the writ petition. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. high court's discretionary power to intervene when authority lacks jurisdiction. (Para 16 , 17 , 18)
5. interpretation of statutory powers of the minorities commission. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
6. final order quashing the notice for lack of jurisdiction. (Para 27)

JUDGMENT (Per Bharati Dangre, J.) :-

1. Petitioner No.1, a banking company, incorporated and registered under the Companies Act, 1956 alongwith its Managing Director and Chief Executive Officer, Group General Counsel, Head of Department of Special Operations and an employee, have approached this Court, seeking issuance of writ of certiorari or a writ, order or direction in the nature of a writ of certiorari for quashing and setting aside the impugned notice dated 23/07/2024 issued by Respondent No.2-Maharashtra State Minorities Commission (hereinafter referred to as, “Minorities Commission”), asking them to attend the hearing, scheduled before it on 01/08/2024.

A writ of prohibition or a writ, order or direction in the nature of writ of prohibition is also sought restraining Respondent No.2 from entertaining and/or proceeding with the hearing of the impugned complaint.

2. On the Petition being listed before us on 01/08/2024, the learned senior counsel representing the Minorities Commission informed us that the hearing was re-scheduled to 02/09/2024 and pursuant thereto, upon the affidavits being filed by the Respondents, we have taken up the Petition for hearing.

3. We have heard learned senior counsel Mr.Shirish Gupte alongwith learned senior counsel Mr.Kevic Setalvad i/b Aagma Law Associates for the Petitioners, whereas learned senior counsel Mr.Anil Sakhare alongwith Mr.Rohan Mirpury has represented Minorities Commission. Respondent No.3-the Complainant, who has lodged the complaint with Minorities Commission, is represented by learned senior counsel Mr.Abad Ponda alongwith Mr.Kushal Mor and Mr.Marmik Shah.

The State of Maharashtra is represented by Ms.Sheetal Malvankar, the learned Assistant Government Pleader.

By consent of the parties, it is agreed to take up the Petition for final hearing at the stage of admission and the learned counsel are heard in support of their stand adopted in the Petition.

4. On 22/07/2024, Respondent No.3-Mr.Rajesh Mehta, projecting himself to be the permanent trustee of Lilavati Kirtilal Mehta Medical Trust (hereinafter referred to as, “LKMM Trust”) lodged a complaint with Vice Chairperson of Minority Commission, State of Maharashtra, Mumbai alleging severe harassment and mental torture caused to him and his late father Mr.Kishor Mehta, an eminent person belonging to Jain Minority Community, by the Senior Management and Recovery Department of HDFC Bank, allegedly in collusion with the erstwhile trustees of LKMM Trust and attributing that this harassment caused death of Mr.Kishor Mehta on 20/05/2024.

The complaint alleged that his family was engaged in a fierce litigation with erstwhile trustees of LKMM Trust, with regard to the control of LKMM Trust and Lilavati Hospital for last two decades and the legal battle was carried upto the highest Court and pursuant to the order dated 18/09/2023 passed by Hon’ble Supreme Court of India, the Assistant Charity Commissioner vide his order dated 14/12/2023, rejected the claim of trusteeship of the erstwhile trustees, thereby finally giving his family the opportunity to take over the management and control of LKMM Trust and Lilavati Hospital. It is also stated in the complaint that in the year 2002, HDFC Bank Ltd, being part of consortium of banks, had initiated the recovery proceedings against the borrower company, M/s Beau

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