PHARMAIDS PHARMACEUTICALS LIMITED REP. BY ITS MANAGING DIRECTOR, ADMN. OFFICE Vs. CENTRAL BANK OF INDIA REP. BY ITS CHIEF MANAGER, GUDIMALKAPURAM BRANCH AND RESERVE BANK OF INDIA

JUDGEMENT

(1.) HEARD Sri Pinnikanti Lakshmi Prasad, Counsel representing Smt. Veda Vani, the learned Counsel representing the writ petitioner and Sri Ch. Siva Reddy, the learned Counsel representing the 1^st respondent.

(2.) THIS Court issued rule nisi on 7 -10 -2005 and granted interim stay in W.P.M.P. No. 27746/2005 subject to the condition of the petitioner depositing a sum of Rs. 10 lakhs within a period of four weeks from 7 -10 -2005 failing which the stay shall stand vacated without further reference to the Court.

(3.) SRI Pinnikanti Lakshmi Prasad, the learned Counsel representing the writ petitioner had taken this Court through the contents of the impugned notice and would maintain that the impugned notice does not satisfy the ingredients of non -performing asset as defined under Section 2(o) of the Act. The learned Counsel also had drawn the attention of this Court to Section 13(2) and Section 13(4) of the Act and would maintain that the question of availing the further alternative remedy as specified under the Act would not arise unless the stage of Section 13(4) of the Act is reached in a particular given case. Hence, the learned Counsel would submit when the impugned notice is not in conformity with Section 2(o) of the Act, read along with the guidelines of the Reserve Bank of India, it may have to be taken that the said notice is without jurisdiction and hence the Writ Petition is perfectly maintainable. The learned Counsel also would submit that the Constitutional remedy under Article 226 of the Constitution of India cannot be taken away by an ordinary Legislative measure and when there is no other alternative remedy at all, till the stage of Section 13(4) of the Act is reached, definitely as against a notice under Section 13(2) of the Act, when the said notice is not in conformity with the provisions of the Act and also the guidelines of the Reserve Bank of India, the Writ Petition can be maintained and the said notice is liable to be quashed on this ground. The learned Counsel also pointed out to the respective pleadings of the parties and had drawn the attention of this Court to the relevant provisions of the Act and also the relevant Circulars of the Reserve Bank of India.