Stemkor International Private ... vs The Reserve Bank Of India
2023 Latest Caselaw 4194 Bom

                                                                            P5-OSWPL-9239-2023.DOC




                       Arun



                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 ORDINARY ORIGINAL CIVIL JURISDICTION
                                       WRIT PETITION (L) NO. 9239 OF 2023
                                                            WITH
                                       WRIT PETITION (L) NO. 9247 OF 2023


                       Stemkor International Pvt Ltd & Ors                               ...Petitioners
                             Versus
                       Reserve Bank of India & Ors                                     ...Respondents


                       Mr Mayur Khandeparkar, with N Mehta, i/b Vashi & Vashi, for the
                           Petitioners.
                       Mr VN Ajikumar, for Respondent No. 3


                                                     CORAM      G.S. Patel &
                                                                Neela Gokhale, JJ.

                                                     DATED:     25th April 2023
                       PC:-

1. Not on board. Mentioned. Taken on board. ARUN RAMCHNDRA SANKPAL

Digitally signed by ARUN RAMCHNDRA SANKPAL

2. The two Petitions pertain to two different Banks. Both Date: 2023.04.26 09:57:40 +0530 Petitions are covered by the decision of the Supreme Court in State Bank of India & Ors v Rajesh Agrawal & Ors1 regarding the Reserve Bank of India ("RBI") Master Circular on fraud accounts, and the

1 2023 SCC OnLine SC 342.

25th April 2023

P5-OSWPL-9239-2023.DOC

need to comply with the rules of natural justice, including a full disclosure of the material proposed to be relied on by the banks.

3. We are told that the State Bank of India has sought a clarification and an Interim Application is pending before the Supreme Court. Nonetheless, in both these cases the principal judgment will undoubtedly cover the matter.

4. Mr Khandeparkar for the Petitioners states that even here, the full material was not disclosed before the accounts were classified as fraud and the reports of the account being declared fraud accounts were made to the credit rating agencies.

5. We have in almost identical cases protected other petitioners who have come to this Court. The Petition is to be clubbed with the other matters. We follow the same orders, and direct that no coercive action is to be taken against the Petitioners on the basis of the fraud account declaration until further orders of this Court. The entire group is to be listed on 19th June 2023. These two Petitions will be added to that group.

(Neela Gokhale, J) (G. S. Patel, J)

25th April 2023