RESERVE BANK OF INDIA Vs. ESHWARAPPA AND ANOTHER

JUDGEMENT

(1.) -HEARD the learned Counsel for the parties. 1. In all these matters the question which requires consideration is what should be the time limit or the period during which operation of the direction issued under Section 35a of the Banking Regulation Act, 1949 should remain in force? Whether it can remain in force for years together or for a reasonable period.

(2.) IN our view, when no time limit is prescribed under the law, concept of reasonable period is adopted/accepted by the law laid down by the Apex Court.

(3.) THE result would be, after lapse of reasonable time the RBI either should cancel the licence of the Bank or, if possible, lift the ban so that Bank can be revived and made functional. R. P. No. 3458 of 2006