SHRI RAM KISHAN GUPTA Vs. UNION OF INDIA

JUDGEMENT

(1.) Present writ petition has been filed under Article 226 of the Constitution of India for the following reliefs:-

(2.) The facts of the present case are that on 23rd February, 1999 petitioner had deposited Rs.25,50,000/- in a Fixed Deposit Receipt (FDR) with Sikkim Bank Ltd. for a period of ninety-one days. However, on 8th March, 1999, that means before the FDR matured, Government of India passed an order of moratorium under the Section 45(2) of the Banking Regulation Act, 1949 (for short 'Act, 1949').

(3.) In pursuance to the aforesaid moratorium order, the Scheme of Amalgamation (for short 'Scheme') was notified on 21st December, 1999 by virtue of which Sikkim Bank Ltd. was amalgamated with Union Bank of India. This Scheme was challenged by various depositors before the Supreme Court. Finally, on 27th August, 2005 the Supreme Court approved the validity of the Scheme and held that RBI was not responsible for refund of the entire money deposited by the customers with interest.