BASANT KUMAR SHARMA Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) THE present appeal is directed against the judgment dated 07.02.2013 passed by a learned Single Judge of this Court in W.P.(C) No.3760/1995. The appellant had preferred the writ petition, inter alia, praying for quashing and setting aside the directions issued by the Finance Ministry by the letter dated 23.03.1995. In addition, the appellant had sought various prayers which were in the nature of claiming damages from the respondents. The said writ petition was dismissed by the impugned order.

(2.) THE controversy in the present appeal revolves around the question whether the appellant was liable to be treated as a non-resident for the purposes of maintaining his bank account with the State Bank of India (arrayed as respondent No.4 herein). The relevant facts necessary to consider the present appeal are as under.

(3.) THE appellant was maintaining bank accounts with the Mumbai Branch of the respondent No.4 bank. In addition to the bank accounts, the appellant was also availing the services of portfolio investment and safe custody of securities with repatriation benefits from the respondent no. 4 bank. One of the accounts of the appellant was an 'NRE' account while the other was an 'NRO' account (NRE A/c No.6384 and NRO A/c No.0684). Admittedly, the facility of maintaining a NRE account is only available to a non-resident. On his return to India, the appellant wrote a letter dated 28.03.1988 to the respondent seeking conversion of the status of his accounts to 'NRO'. The relevant extract of the said letter dated 28.03.1988 is quoted below:-