Mulamoottil Consumer Credits Ltd vs Union Of India
2021 Latest Caselaw 8078 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

                 THE HONOURABLE SMT. JUSTICE P.V.ASHA

    TUESDAY, THE 09TH DAY OF MARCH 2021 / 18TH PHALGUNA, 1942

                       WP(C).No.6102 OF 2021(K)


PETITIONER:

               MULAMOOTTIL CONSUMER CREDITS LTD.,
               HAVING ITS REGISTERED OFFICE AT TC-9/1419 (1), TEMPLE
               ROAD, SASTHAMANGALAM,
               THIRUVANANTHAPURAM. PIN-695 010,
               REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR
               SRI.IDICULA ABRAHAM, AGED 59, S/O.S.ABRAHAM,
               MUSEUM BAINS COMPOUND, NANTHANCODE,
               TRIVANDRUM, PIN-695 003.

               BY ADVS.
               SRI.M.RAMESH CHANDER (SR.)
               SRI.THOMAS M.JACOB

RESPONDENTS:

      1        UNION OF INDIA,
               REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY
               OF FINANCE, 502-C, SHASTRI BHAVAN,
               NEW DELHI, PIN-110 001.

      2        THE RESERVE BANK OF INDIA,
               REGIONAL OFFICE, BAKERY JUNCTION, P.B. NO.6507,
               THIRUVANANTHAPURAM, PIN 695 003,
               REPRESENTED BY ITS REGIONAL DIRECTOR.

      3        THE GENERAL MANAGER,
               RESERVE BANK OF INDIA,
               DEPARTMENT OF NON-BANKING SUPERVISION,
               BAKERY JUNCTION, P.B. NO.6507,
               THIRUVANANTHAPURAM, PIN-695 003.

      4        THE DEPUTY GENERAL MANAGER,
               RESERVE BANK OF INDIA, REGIONAL OFFICE,
               BAKERY JUNCTION, P.B. NO.6507,
               THIRUVANANTHAPURAM, PIN-695 003.


THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION           ON
09.03.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C).No.6102 OF 2021(K)

                                      2


                             JUDGMENT

The petitioner is a Non-Banking

Finance Company with registered office at

Thiruvananthapuram. It is aggrieved by

Ext.P5 order by which it has been asked to

stop all NBFI activities except recovery and

also to furnish monthly report on the NOF

position.

2. Aggrieved by this, petitioner had

submitted Ext.P8 representation before the

4th respondent. However, petitioner has

received Ext.P9 communication referring to

the same reiterating the direction in

Ext.P5. Petitioner points out that no

opportunity of hearing has been granted

before a direction is issued to petitioner

to stop its activities, which has put it to

serious prejudice. Even though the

petitioner had submitted Ext.P8 WP(C).No.6102 OF 2021(K)

representation, explaining the

circumstances, it is pointed out that no

opportunity of hearing was granted before

issuing Ext.P9 communication.

3. According to the petitioner, the

order has been passed in violation of the

provisions contained in proviso to Section

45-IA(6) of the Reserve Bank of India Act.

The learned senior counsel relies on the

judgments of this Court in W.A.No.1979/2019

and also the judgment reiterated in Sreekala

Anil v. Secretary, Ministry of Finance and

others [I.L.R 2021 (1) Kerala 739].

4. I am of the view that the claim

raised by the petitioner in this writ

petition for a hearing before drastic orders

are issued, requires consideration.

Therefore the writ petition is

disposed of with a direction to the 4th WP(C).No.6102 OF 2021(K)

respondent to afford an opportunity of

hearing to petitioner on Ext.P8

representation. Till such time, the

direction issued in Ext.P5 and in Ext.P9

shall be kept in abeyance.

Sd/-

P.V.ASHA JUDGE WW WP(C).No.6102 OF 2021(K)

APPENDIX PETITIONER'S EXHIBITS:

EXHIBIT P1 TRUE COPY OF CERTIFICATE OF REGISTRATION DATED 20.08.2019 OF THE PETITIONER.

EXHIBIT P2 A TRUE PRINTOUT OF THE DETAILS OF DECREED ACCOUNTS OF THE PETITIONER SHOWING THE DETAILS OF THE CASE AND THE DECREED AMOUNT.

EXHIBIT P3 TRUE COPY OF THE SUPERVISORY LETTER DNBS(T) NO.113/02.19.011/2018 -19 DATED 20.07.2018.

EXHIBIT P4 A TRUE COPY OF THE RETURN SUBMITTED BY THE PETITIONER TO THE RBI SHOWING THE POSITION OF MONTHLY PROGRESS IN THE ACHIEVEMENT OF ACTION PLAN TARGET OF NOF FOR THE MONTH OF JANUARY 2020 TOGETHER WITH CERTIFICATE DATED 19.2.2020 OF THE CHARTERED ACCOUNTANT.

EXHIBIT P5 TRUE COPY OF LETTER NO.DoS(T).292/ 02.01.007/2020-21 DATED 22.01.2021 ISSUED BY THE 4TH RESPONDENT.

EXHIBIT P6 A TRUE COPY OF THE VALUATION STATEMENT DATED 27.4.2015 OF THE PROPERTY OF THE PETITIONER AT ERNAKULAM.

EXHIBIT P7 A TRUE COPY OF THE VALUATION STATEMENT DATED 5.4.2016 OF THE PROPERTY OF THE PETITIONER AT TRIVANDRUM.

EXHIBIT P8 TRUE COPY OF THE REPRESENTATION DATED 9.02.2021 SUBMITTED BY THE PETITIONER TO THE 4TH RESPONDENT.

EXHIBIT P9 TRUE COPY OF EMAIL DATED 22.02.2021 FROM THE ASSISTANT MANAGER UNDER THE 4TH RESPONDENT.