LAWS(MAD)-2006-2-355

PALANI ANDAVAR COTTON AND SYNTHETICS SPINNER LIMITED Vs. CENTRAL BANK OF INDIA REGIONAL OFFICE COIMBATORE

Decided On February 14, 2006
PALANI ANDAVAR COTTON AND SYNTHETICS SPINNER LIMITED Appellant
V/S
CENTRAL BANK OF INDIA Respondents

JUDGEMENT

(1.) THE petitioner seeks for the issuance of a certiorarified mandamus calling for the records of the first respondent relating to OTS proposal by its letter dated 16.1.2006 and quash the same and further direct the respondents to consider the petitioner's OTS proposal submitted on 24.11.2005.

(2.) THE claim of the petitioner is that the "one time settlement" proposal submitted on 24.11.2005 was in accordance with the guidelines issued by the Reserve Bank of India on 3.9.2005.

(3.) AS far as the decision relied on by the learned counsel for the petitioner, as reported in Canara Bank v. P.R.N.Upadhyaya Canara Bank v. P.R.N.Upadhyaya Canara Bank v. P.R.N.Upadhyaya A.I.R.1998 S.C.3000 is concerned, the Honourable Supreme Court has specifically mentioned that the circulars issued therein by the Reserve Bank of India were the circulars issued under Secs.21 and 35-A of the Banking Regulation Act. Therefore, when the circulars were issued specifically under the relevant provisions, whatever observation given by the Honourable Supreme Court will definitely have greater implications in those circumstances. AS a matter of fact, the guidelines with reference to which we are concerned are not the one issued either under Sec.21 of 35-A of the Banking Regulation Act. It cannot also be held that merely because such guideline was issued by the Reserve Bank of India, it will have statutory force and that the respondents are bound to follow the said circular.