RADHEY SHYAM AGARWAL Vs. BANK OF RAJASTHAN LTD.

JUDGEMENT

(1.) Instant company appeal has been filed u/S. 10F of the Companies Act, 1956 against the order dt.30.9.2011 of the company Law Board (CLB) disposing of company petition filed u/Secs. 235(2) read with 237(B) holding that once the Scheme of Amalgamation has been sanctioned by the Reserve Bank of India under sub-Sec.(4) of Sec.44(A) of the Banking Regulations Act of 1949 and the Bank of Rajasthan stood merged into ICICI Bank, that became binding on the Banking Companies and also on the share holders; however, the Scheme of Amalgamation was challenged before the Apex Court on the behest of appellant in Writ Petition (Civil) No.288/2010 which came to be dismissed vide order dt.13.9.2010 upholding amalgamation and accordingly the CLB was of the view that the relief which the appellant claimed in company petition no longer survives and it was disposed of having been rendered infructuous and that is subject matter of challenge in the instant company appeal.

(2.) It is relevant to note that the Scheme of Amalgamation was approved by the RBI under sub-Sec.(4) of Sec.44(A) on 12.8.2010 and a day earlier the company petition was filed by the appellant on 11.8.2010 before the Company Law Board under Secs.235(2) read with Sec.237(B) of the Companies Act and the reason appears to be that under the Scheme of Amalgamation which was approved by the RBI dt.12.8.2010 under Para (iv) Clause (c) it was stipulated that all suits, actions and legal and other proceedings by or against the Transferor Bank pending and/or arising on or before the Effective Date shall be transferred in the name of the Transferee Bank and shall be continued and be enforced by or against the Transferee Bank as effectually and in the same manner and to the same extent as if the same had been pending and/or arisen by or against the Transferee Bank.

(3.) The submission of the appellant is that the company petition was filed before the Company Law Board for investigating the affairs of the Bank of Rajasthan so as to prevent statutory books and record and that grievance of the appellant still survives even after the Scheme of Amalgamation being approved by the RBI and after rejection of Writ Petition (Civil) 288/2010 preferred by him before the Apex Court vide order dt.13.9.2010 assailing the merger on the ground of breach of Sec.44(A) of the Banking Regulation Act, 1949 even if no longer available to the petitioner, but still the Company Law Board has committed apparent error in disposing of company petition as having been rendered infructuous.