REGIONAL DIRECTOR Vs. NAHAR FINANCE & LEASING LIMITED

JUDGEMENT

(1.) These appeals are filed by the Reserve Bank of India challenging the common order passed in the Writ Petitions in W.P.Nos.18225 of 2018 and etc., batch, dated 29.01.2019 filed by the respondents herein.

(2.) The prayers in the writ petitions were for issuance of Writs of Certiorari to quash the orders passed by the Regional Director, Reserve Bank of India, Department of Non-Banking Supervision, dated 08.06.2018, 26.07.2018, 25.05.2018 and 04.06.2018 respectively as being contrary to the provisions of the Reserve Bank of India Act, 1934 (hereinafter referred to as "the RBI Act ") and against the principles of natural justice. The writ petitions were allowed by the impugned common order dated 29.01.2019 with a direction to the appellants/respondents to restore the Certificate of Registration (in short, "CoR") of the respondents and also extend time to the respondents/writ petitioners to comply with the requirements under Section 45-IA of the RBI Act till 31.03.2019.

(3.) Mr.G.Masilamani, learned Senior Counsel, assisted by Mr.Chevanan Mohan along with Mr.V.Ponappa Bharathi, submitted that as against the order impugned in the writ petitions, there is an appeal remedy available and the respondents/writ petitioners without availing such remedy, have filed the writ petitions and the writ petitions ought not to have been entertained. Further, it is submitted that the learned Single Bench came to the conclusion that there is violation of principles of natural justice, while passing the order impugned in the writ petitions, by wrongly construing the statutory provisions which only provides for an opportunity of being heard which does not mean an opportunity of being personally heard in the matter. Further, it is submitted that whether the very moratorium in Section 45-IA(3) of the RBI Act will apply to the case of the writ petitioners is an important issue which ought to have been considered in a right prospective. Further, it is submitted that the learned Single Bench extended the time for compliance of the requirements under Section 45-IA of the RBI Act to 31.03.2019 which could not have been done in exercise of the powers under Article 226 of the Constitution of India.