Muthoottu Mini Financiers ... vs Union Of India
2021 Latest Caselaw 14654 Ker

WP(C) NO. 25470 OF 2020            1



               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                 THE HONOURABLE MR. JUSTICE T.R.RAVI
    WEDNESDAY, THE 14TH DAY OF JULY 2021 / 23RD ASHADHA, 1943
                       WP(C) NO. 25470 OF 2020


PETITIONER:

          MUTHOOTTU MINI FINANCIERS LIMITED
          HAVING ITS REGISTERED OFFICE AT MUTHOOTTU BUILDINGS,
          MARKET ROAD, KOZHENCHERRY,
          PATHANAMTHITTA, KERALA-689 641
          REPRESENTED BY ITS MANAGING DIRECTOR,
          MR.MATHEW MUTHOOTTU
          BY ADVS.
          SRI.N.RAGHURAJ
          SHRI.SREEKUMAR S

RESPONDENTS:

    1     UNION OF INDIA
          REPRESENTED BY SECRETARY TO MINISTRY OF FINANCE,
          NEW DELHI- 110 001
    2     RESERVE BANK OF INDIA,
          CENTRAL OFFICE BUILDING ,
          SHAHID BHAGAT SINGH MARG,
          MUMBAI, MAHARASTRA-400001,
          REPRESENTED BY IS CHIEF GENERAL MANAGER-IN-CHARGE
    3     GENERAL MANAGER,
          DEPARTMENT OF SUPERVISION (NBFC),
          RESERVE BANK OF INDIA, THIRUVANANTHAPURAM,
          BAKERY JUNCTION, P.B.NO.6507,
          THIRUVANANTHAPURAM-695 033
    4     STATE BANK OF INDIA,
          CORPORATE CENTRE, STATE BANK BHAVAN,
          MADAME CAMA ROAD, MUMBAI, MAHARASTRA-400021,
          REPRESENTED BY ITS CHAIRMAN
    5     STATE BANK OF INDIA,
          KULASEKHARAM BRANCH, DENNISON PLAZA,
          KULASEKHARAM, TAMIL NADU-629161,
          REPRESENTED BY ITS BRANCH MANAGER
 WP(C) NO. 25470 OF 2020         2


    6     STATE BANK OF INDIA,
          NARANGANAM BRANCH, KADAMMANITTA,
          KOZHENCHERRY RD, PATHANAMTHITTA,
          KERALA-689 642,
          REPRESENTED BY ITS BRANCH MANAGER
          BY ADVS.
          SRI.P.L.VENU KUMAR
          SRI.JOSEPH KODIANTHARA (SR.)
          SRI.SANTHOSH MATHEW
          SRI.ABRAHAM JOSEPH MARKOS
          SRI.V.ABRAHAM MARKOS
          SRI.ISAAC THOMAS
          SHRI.ALEXANDER JOSEPH MARKOS
          SHRI.SHARAD JOSEPH KODANTHARA
          SRI.P.G.CHANDAPILLAI ABRAHAM
          SRI. P. VIJAYAKUMAR, ASGI


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 14.07.2021, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 WP(C) NO. 25470 OF 2020              3




                      WP(C)No.25470 of 2020

              (Dated this the 14th day of July, 2021)

                                JUDGMENT

The petitioner, which is a Non-Banking Financial Company

registered under the Reserve Bank of India Act, 1934, has filed this

Writ petition, being aggrieved by Exhibits P2, P3 and P7 circulars

issued by the 2nd Respondent. The grievance projected is regarding the

restriction imposed on the banks to open current accounts, for

customers who have availed credit facility facilities in the form of cash

credit/overdraft, and the requirement that all transactions should be

routed through the cash credit/overdraft account.

2. Heard Sri N.Raghuraj on behalf of the petitioner, Sri Joseph

Kodiayanthara, Senior Advocate, instructed by Sri Abraham Joseph

Markose on behalf of the Respondents 2 and 3, Sri Santhosh Mathew

on behalf of the 5th Respondent and Central Government Counsel on

behalf of the 1st respondent.

3. The Counsel on either side are agreed that a learned Single

Judge of this Court had considered a batch of Writ petitions involving

the very same issues and has by judgment dated 9.4.2021 in W.P.

(C)No. 22768 of 2020 and connected cases held in paragraph 5 as

follows:

"5. After hearing the Standing Counsel for the Reserve Bank of India and the State Bank of India, and the learned counsel appearing for the petitioners, this Court is of the opinion that the issues pointed out by the petitioners should be dealt with in an appropriate manner protecting the interest of the petitioners and at the same time recognising the spirit of the circulars of the Reserve Bank of India. In that view of the matter, the petitioners and their Banks may sit together and try to arrive at a workable solution in the matter. In case issues are not resolved or any issue remains, the constituent Banks may approach the Reserve Bank of India for a workable resolution of the issue. Till such time the issues are resolved as stated above by mutual consultation or till such time the Reserve Bank of India passes orders on the specific issues raised by the petitioners, the status quo as regards the accounts of the petitioners as on the date of filing of the Writ petitions shall be maintained."

4. I am of the view that the same directions can be issued in

this case also. The Writ petition is hence disposed of in terms of

paragraph 5 of the judgment in W.P. ( C ) No. 22768 of 2020,

extracted above.

Sd/-

T.R.RAVI, JUDGE dsn

APPENDIX OF WP(C) 25470/2020

PETITIONER ANNEXURE EXHIBIT P1 A TRUE COPY OF THE CERTIFICATE OF REGISTRATION DATED 01.01.2014 ISSUED BY THE RESERVE BANK OF INDIA EXHIBIT P2 A COPY OF THE NOTIFICATION BEARING NO.RBI/2020-21/20 DOR NO.BP.BC/7/21.04.048/2020-21 DATED 06.08.2020 EXHIBIT P3 A COPY OF THE NOTIFICATION BEARING NO.RBI/2020-21/62 DOR NO.BP.BC/7/21.04.048/2020-21 DATED 02.11.2020 EXHIBIT P4 A TRUE COPY OF THE LETTER DATED 19.10.2020 ISSUED BY THE 6TH RESPONDENT EXHIBIT P5 A TRUE COPY OF THE LETTER DATED 03.11.2020 ISSUED BY THE 5TH RESPONDENT EXHIBIT P6 A TRUE COPY OF THE REPRESENTATION DATED 06.11.2020 ISSUED BY THE PETITIONER TO THE 3RD RESPONDENT EXHIBIT P7 A TRUE COPY OF THE CIRCULAR DATED 14.12.2020 OF THE 2ND RESPONDENT EXHIBIT P8 A TRUE COPY OF THE ORDER DATED 23.12.2020 ISSUED BY THE 2ND RESPONDENT