NAGARJUNA FINANCE LIMITED Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) THE main appeal being C.A. No. 15 of 2003 has come up before us on a reference made by the learned Single Judge vide his order, dated 18.11.2003. Thereupon, we have taken up the main appeal along with connected batch cases, which have been posted.

(2.) HEARD Sri M. Anil Kumar, learned Counsel appearing for the appellant and Sri Ch. Ramesh Babu, Sri B. Kantha Rao, learned Senior Counsel, Sri V.S. Raju, Sri P. Prabhakar Rao, Sri C. Ramesh Sagar, Sri Deepak Bhattacharjee, Sri S. Ravi, learned Senior Counsel appearing on behalf of Sri C.V. Narasimham, and Sri E. Manoher, learned Senior Counsel.

(3.) THE NFL Company has filed C.P. No. 27 of 2003 before the CLB for rescheduling the repayment of matured deposits collected by the said company. The CLB by its order, dated 26.06.2003 dismissed the said application. The NFL Company aggrieved by the said order, has filed the present appeal being C.A. No. 15 of 2003. During the pendency of the appeal, the appellant has filed Application No. 693 of 2003 to direct the Promoter, erstwhile Directors and other holding companies to arrange the funds for repayment of fixed deposits on 05.08.2003. Further, the appellant has sought for a direction from this Court to conduct investigation into the affairs of the company by making allegations against the promoter and erstwhile Directors of the NFL Company. During the pendency of the said application, the appellant has also filed Application No. 802 of 2003 to implead the Promoter, erstwhile Directors and the other holding companies as respondent Nos. 4 to 22 on the ground that Promoter and holding companies have filed an affidavit assuring the repayment of deposits by the NFL Company. This Court has ordered notice to the proposed respondents. The proposed respondents have filed counter affidavits and opposed for impleading. When the matter came up for hearing, the learned Single Judge while observing that the matter involves considerable importance involving larger public interest, formulated the following three points and referred the matter to the Division Bench for adjudication.