ROYAPETTAH BENEFIT FUND Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) PETITIONER seeks for an issue of writ of mandamus to direct the first respondent to appoint a fit and proper person as custodian for taking over the management of 6th respondent and take immediate control and possession of the assests and properties both movable and immovable and securities and pay the petitioner and other depositors their dues. It is brought to my notice that several members of public have deposited their money with the respondent Nidhi, which are alleged to have been diverted by way of loans without proper security, violating relavant norms and bye-laws of the respondent Nidhi as well as several provisions of the Companies Act.

(2.) SINCE five out of seven directors of the RBF Nidhi Limited were arrested and two were absconding, necessary steps to take over the affairs of the Company in the larger interest of the depositors could not be postponed, the Company Board, the Ministry of Law. Justice and Company Affairs, by proceedings dated 21-1-2000, exercising its power under Section 103 of the Companies Act, constituted a Board of Directors and thus, appointed six persons to hold the office of M/s. RBF Nidhi Limited with immediate effect therefrom. Accordingly, the respondent Board is functioning and taking care of the affairs of the RBF Nidhi Limited. Admittedly, the sixth respondent was appointed by the Company Law Board by exercising the statutory powers conferred on it under Section 403 of the Companies Act.