NADAR MAHAJANA SANGAM, MADURAI, THROUGH ITS GENERAL SECRETARY (FOR AND BEHALF OF SHAREHOLDERS OF TAMILNADU MERCANTILE BANK LTD.) Vs. RESERVE BANK OF INDIA, CENTRAL OFFICE DEPARTMENT OF BANKING OPERATION AND DEVELOPMENT CENTRE

JUDGEMENT

(1.) The petitioner Nadar Mahajana Sangam, Madurai claiming itself as the apex body of Nadar Mahamais (Associations) spread all over India, registered itself under he Societies Act, filed the present writ petition seeking or the relief of issuance of a writ of mandamus forbearing he first respondent - Reserve Bank of India and the second respondent - the Tamil Nadu Mercantile Bank Limited a private bank incorporated under the provisions of Companies Act, from effecting transfer or allow private respondents No. 3 to 5 to deal with 95,418 shares in an manner by contending that the second respondent Bank had been created to foster and develop the resources of the community or class called "Nadars" and the Bank is acting against the purpose for which it was created, that one Essar group with the object of taking over the management of the second respondent bank entered into a memorandum of undertaking with its shareholder to buy 67% of its shares in the names of seven companies. Such an undertaking was against the Reserve Bank of India guidelines and as such permission has not been granted for transfer of the names by the first respondent. The petitioner also referred to several litigations in respect of the internal management of the bank and irregularity in conducting the annual general body meeting held on 12.3.2004 and on those grounds filed the above writ petition with the prayer as stated above.

(2.) The respondents resisted the writ petition mainly on the ground that the writ petition at the hands of the petitioner complaining about the internal management of the Bank is not maintainable in law as the writ petition seeks to set at naught the powers of attorney executed by certain shareholders appointing respondents No. 3 to 5 as their duly constituted agents, which is private contract in nature. The arraying of Reserve Bank of India as the first respondent cannot be itself be a reason for maintaining a writ petition and it is nothing but an abuse of process of law as the prayer sought for is in the nature of injunction against the second respondent from dealing with the shares. For such a relief, a writ petition is not maintainable. On merits also, it was contended that the meeting held on 12.3.2004 is only in accordance with the directions issued by the Division Bench of this Court that the meeting was chaired by a retired High Court judge of this Court pursuant to the order of the Company Law Board that the conduct of the meeting has been found legal by the Company Law Board in its order dated 18.6.2004. When such being the position, the writ petition deserves to be dismissed as not maintainable.

(3.) I heard the argument of the learned counsel for the respondents, who argued before this Court. However, though the case was twice adjourned for the purpose of argument of learned counsel for the petitioner, the counsel has only submitted written submissions on 25.1.2005.