Ram Charan Company Private Limited vs Reserve Bank of India

Headnote Court Copy Facts Arguments Court observation Judicial Analysis Case Map Category Hierarchy Table of Content

2026 Supreme(Online)(Mad) 20254

IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J
Ram Charan Company Private Limited – Appellant
Versus
Reserve Bank of India – Respondent
WMP NO. 9262 OF 2022

Important Points

The dismissal of the Writ Petition for non-prosecution indicates the necessity for representation in court proceedings to avoid infructuous actions.

Subject

Civil Law - Writ Jurisdiction

Act Referred

Constitution of India: Article 226

Headnote

This case concerns a Writ Petition filed under Article 226 of the Constitution challenging the classification of an account as a Red Flagged Account by the Respondent No.2, alleging it to be illegal and arbitrary. The petition was dismissed for non-prosecution as there was no representation from the petitioner, and the court found the application of Clause 8.3.6 under the RBI Master Circular questionable due to non-appearance. The court concluded that the petitioner's plea has become infructuous for the lack of representation.

Advocates:
For the Appellants/Petitioners: No appearance
For the Respondents: Mr.Chetan Sagar for R2, No appearance for R1

Table of Content
1. challenge to classification as red flagged account. (Para 1)
2. non-representation leading to dismissal. (Para 2)
3. final decision on petition. (Para 3)

PRAYER : Petition filed under Article 226 of the Constitution of India, to issue a Writ of Declaration, to declare the action of Respondent No.2 herein to classify the account of the petitioner as Red Flagged Account through Fraud Monitoring Group or any other designated Committee formed by the Respondent No.2 under Clause 8.3.6 of the Circular, reporting made by the Respondent No.2 to the Central Fraud Monitoring Cell, RBI which was not served to the petitioner, reporting made on the CRILC platform and appointment of Forensic Auditor as null and void being illegal, arbitrary and ultra-virus the RBI Master Circular dated 1.07.2016 on Classification of Frauds.

For Petitioner(s): No appearance For Respondent(s): Mr.Chetan Sagar for R2 No appearance for R1

Order

This Writ Petition has been filed to declare the action of Respondent No.2 to classify the account of the petitioner as Red Flagged Account through Fraud Monitoring Group or any other designated Committee formed by the Respondent No.2 under Clause 8.3.6 of the Circular, reporting made by the Respondent No.2 to the Central Fraud Monitoring Cell, RBI which was not served to the petitioner, reporting made on the CRILC platform and appointment of Forensic Auditor as null and void being illegal, arbitrary and ultra-virus the RBI Master Circular dated 1.07.2016 on Classification of Frauds.

2. No representation for the petitioner. The learned counsel for R2 is present and submitted that the prayer sought in this Writ Petition has become infructuous.

3. However, as there is no representation for the petitioner, this Writ Petition is dismissed for non-prosecution. No costs. Consequently, connected miscellaneous petition is closed.