G.K. GURURAJRAO Vs. UNION OF INDIA

JUDGEMENT

(1.) INTRODUCTION - The appellant has filed the present appeal impugning the order dtd. 1/9/2025 (hereinafter 'the impugned order ') passed by the learned Single Judge of this Court rejecting Writ Petition No.2991 of 2023 (GM-RES), captioned G.K. Gururaja Rao v. Union of India and Others. The appellant had filed the said writ petition under Article 226 of the Constitution of India, inter alia impugning Sec. 18A(5) and Sec. 21(3) and (4) of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (hereinafter referred to as 'the Act '), to the extent that those provisions entitle the respondent No.3. (hereinafter referred to as 'the Corporation ' for short) to the reimbursement of the amount in aid paid to depositors, as being violative of Articles 14, 19, 21, 38, 43-B and 300-A of the Constitution of India.

(2.) The appellant is aggrieved by the Corporation securing reimbursement of the amount paid by it to the depositors of respondent No. 4, Sri Guru Raghavendra Sahakara Bank Niyamitha (hereinafter referred to as 'the Bank ' in short ), in priority to the other amounts due to the depositors. The appellant contends that on the principle of subrogation the Corporation cannot be accorded a higher priority to recover the amounts paid to the depositors than the priority of payment of the said dues to the said depositors.

(3.) The appellant is the Secretary of Sri Guru Raghavendra Sahakara Bank (Ni) Tevanidarara Sangha (hereinafter referred to as 'the Sangha ' or 'the appellant '), a society registered under the Karnataka Societies Registration Act, 1960, on 21/7/2020. The Sangha claims to have been formed to protect the interests of its members, who are depositors, shareholders, and account holders of the Bank.