BARI DOAB BANK LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners in these petitions for special leave to appeal against the judgment of the Delhi High court dated 20/3/1997 in Letters Patent Appeals Nos. 57 and 58 of 1997 are Banking Companies governed by the Banking Regulation Act, 1949 (hereinafter referred to as "the Act"). On 30/9/1996, the central government, in exercise of its power under Section 45 (2 of the Act, made orders of moratorium in respect of the petitioner Banks.

(2.) The writ petitions filed by the petitioners in the Delhi High court to challenge the said orders were dismissed by the learned Single Judge and letters patent appeals filed against the said judgment of the learned Single Judge have been dismissed by the impugned judgment.

(3.) The learned Judges on the division bench of the High court have held that having regard to the purpose of a moratorium the petitioners could not claim a right to be heard at a stage prior to the passing of an order under Section 45 (2 but have held that the petitioners will have post-decisional opportunity at the stage of filing objections to the draft scheme framed under Section 45 (4 when forwarded by the Reserve Bank of India under Section 45 (6 of the Act.