KLN. HOLDINGS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Ms. K.Mamata Choudary, learned Senior Counsel representing Mr. Challa Gunaranjan, learned counsel for the petitioners. Mr. Gadi Praveen Kumar, learned Deputy Solicitor General of India for respondent No.1. Mr. B.Nalin Kumar, learned Senior Counsel for respondent No.2.

(2.) In this writ petition, petitioner No.1 is a private limited company. The petitioners (hereinafter referred to as 'petitioner company') have assailed the constitutional validity of Chapters IIIB, IIIC and V of the Reserve Bank of India Act, 1934 (briefly referred to hereinafter as 'the Act') insofar as it restricts the petitioner company from carrying on the business of acquisition of shares, stocks, bonds and other securities with its wholly owned funds on the ground that the same is arbitrary, illegal, unconstitutional and violative of Articles 14 and 19(1)(g) of the Constitution of India. In the alternative, the petitioner company has prayed for the relief that the provisions of Chapters IIIB, IIIC and V of the Act do not apply to the petitioner company.

(3.) Facts giving rise to filing of this petition briefly stated are that the petitioner company is a private limited company. The petitioner company neither receives any deposits or contributions from the public nor has undertaken lending/financing business in any manner. The petitioner company invests in equity and accruals in sister concerns and listed securities/mutual funds.