Madras High Court
P.S.P.K.Maragathrajaapandian vs The Reserve Bank Of India on 29 January, 2021
W.A.No.2 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.01.2021
CORAM :
THE HONOURABLE MR. JUSTICE M. SATHYANARAYANAN
AND
THE HONOURABLE MR. JUSTICE N. KIRUBAKARAN
W.A.No.2 of 2016
and
C.M.P.Nos.824, 6033, 21 of 2016,
1618 to 1620 of 2017,
10145, 16385, 16389, 16388, 16419 of 2019,
7089, 7094, 12137, 12139, 12141, 12225,
12133, 12134 & 12144 of 2020
P.S.P.K.Maragathrajaapandian ... Appellant
Vs.
1.The Reserve Bank of India,
constituted under the Reserve
Bank of India Act, 1934
having its Head Office at
Reserve Bank of India Building,
Fort, Mumbai 400 001,
through its Governor
2.The Deputy Governor,
Reserve Bank of India,
Central Office Building,
Shahid Bhagad Singh Marg,
Mumbai – 400 001.
https://www.mhc.tn.gov.in/judis/
Page 1 of 12
W.A.No.2 of 2016
3.Tamilnadu Mercantile Bank Ltd.,
a Banking Company incorporated
under the Companies Act, 1913,
having its registered office at 57,
V.E. Road, Tuticorin – 628 002,
State of Tamil Nadu, through its
Managing Director & CEO
4.M/s.R.S.T. Ltd.,
C/o. Walkers S.P.V.Ltd.,
Wakers House,
No.87, Marry Street,
George Town,
Grand Cayman Kyl 9002,
Cayman Islands
5.M/s.G.H.I.Ltd.,
No.59, Beachside Avenue,
West Port,
Connecticut 06880,
Connecticut,
United States of America.
6.M/s.Katra Holdings Ltd.,
608, ST. James Court,
St. Dennis Street,
Port Louis, Maritius.
7.M/s.Gokul Patnaik,
T-9 (FF), Green Park Extn.,
Delhi.
8.M/s.Vector Program Pvt. Ltd.,
313-314, Richmond Towers,
Richmond Road,
Bangalore – 560 025.
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Page 2 of 12
W.A.No.2 of 2016
9.Hemangani Finance and Leasing Private Limited,
Sterling Tower,
327, Anna Salai,
Teynampet,
Chennai – 600 006.
10.M/s.Shanmuga Financial Services P. Ltd.,
2F, Apex Plaza, II Floor,
3, Nungambakkam High Road,
Chennai – 600 034.
11.R.Chinnakannan
12.C.Chandrammal
13.M.G.M.Maran
14.M.G.Muthu
15.L.Sridhar
16.N.Ganesan
17.P.S.Sathiya Seelan
18.M/s.Kamehameha Mauritius Ltd.,
608, St. James Court,
St. Denis Street,
Port Louis, Mauritius.
19.M/s.FI Investments (Mauritius) Limited,
608, St. James Court,
St.Denis Street,
Port Louis, Mauritius.
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Page 3 of 12
W.A.No.2 of 2016
20.M/s.Cuna Group (Mauritius) Ltd.,
608, St. James Court,
St.Denis Street,
Port Louis, Mauritius.
21.M/s.Swiss RE Investors (Mauritius) Limited,
608, St. James Court,
St.Denis Street,
Port Louis, Mauritius. ... Respondents
Prayer:- Writ Appeal filed under Clause 15 of the Letters Patent to set
aside the order dated 26.11.2015 made in M.P.No.2 of 2013 in
W.P.(MD) No.12543 of 2013 passed by this Court.
For Appellant : No appearance
For R1 and R2 : Mr.C.Mohan
for M/s.King and Partridge
For R3 : Mr.R.Sankaranarayanan
Senior Counsel
for Mr.Kuberan
for M/s.Rank Associates
For R18 to R21 : Mr.M.S.Krishnan
Senior Counsel
for Mr.Aniruth Krishnan
JUDGMENT
The present Writ Appeal is preferred by the appellant, namely,
P.S.P.K.Maragathrajaapandian, S/o.P.S.P.Kandasamy Nadar, 488,
V.E.Road, Tuticorin, against the dismissal of M.P.No.2 of 2013 in
W.P.(MD) No.12543 of 2013.
https://www.mhc.tn.gov.in/judis/
W.A.No.2 of 2016
2.The said Miscellaneous Petition is filed praying for an order of
injunction restraining the 3rd respondent therein, his men or agents, from
permitting any voting rights based on the acknowledged shares
transferred in contravention to Section 12B(3) of the Banking Regulation
Act as declared by the order of the 2nd respondent, dated 31.03.2011,
pending disposal of the writ petition.
3.A Single Bench of this Court, in the operative portion of the
order dated 26.11.2015, in Para No.23, held as follows :
“23.For the foregoing reasons, W.P.Nos.25256 to
25258 of 2013 are dismissed and consequently, the
connected miscellaneous petitions in the said writ petitions
are closed and the interim injunction granted on 10.9.2013
is vacated. M. P.No.1 of 2013 in W.P.No.11159 of 2011 is
allowed and M.P.No.1 of 2011 in W.P.No.11159 of 2011 is
dismissed and the interim order granted on 28.4.2011 is
vacated. M.P. (MD) No.1 of 2014 in W.P. (MD) No. 12543
of 2013 is allowed and M.P. No.2 of 2013 in W.P (MD) No.
12543 of 2013 is dismissed and the interim order granted
on 29.7.2013 is vacated. In view of the Order passed today,
M.P. (MD) No.1 of 2013 in W.P. (MD) No.12543 of 2013 is
also dismissed. However, there is no order as to costs.”
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W.A.No.2 of 2016
4.Mr.P.S.P.K.Maragathrajaapandian, aggrieved by the dismissal of
the above cited petition and the consequential vacating of the interim
order, came forward to file the present Writ Appeal, and the appellant did
not have the benefit of any interim order pending disposal of this Writ
Appeal.
5.The Writ Appeal was filed by Mr.N.Manokaran, learned counsel
for the appellant, and vide memo of withdrawal of vakalat, dated
18.12.2019, he has informed this Court that the appellant has taken back
the bundle related to this Writ Appeal on 14.10.2019 and he has
informed the appellant about the listing of this appeal for hearing on
18.12.2019, and hence, prayed for deletion of his name.
6.The Division Bench of this Court, while dealing with W.A.Nos.2
of 2016 and 1752 of 2015, in Para No.23 of the order, dated 29.02.2016,
has observed among other things that they will take a call as to the
reasons for withdrawal later.
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W.A.No.2 of 2016
7.The name of the appellant is also printed in the cause list,
however, there is no representation on his behalf.
8.This Court, vide order dated 03.11.2020 made in W.A.No.2 of
2016 and C.M.P.Nos.10145, 16385, 16388, 16389 and 16419 of 2019 &
W.P.No.23056 of 2019 and W.M.P.No.22748, 22751 of 2019, has
permitted the elected Directors to assume charge and has also made it
clear that the assumption of charge by the elected Directors is subject to
the outcome of the pending litigations.
9.W.P.(MD) No.12543 of 2013 is filed by the appellant herein as
the writ petitioner, praying for issuance of a writ of mandamus directing
the respondents 1 and 2, viz., the Reserve Bank of India and the Deputy
Governor of Reserve Bank of India, Mumbai, to direct the 3rd respondent,
viz., the Tamilnadu Mercantile Bank Limited, Tuticorin, not to deal or
transfer the unacknowledged shares and consequently to direct the 3rd
respondent to cancel the transfer of unacknowledged shares transferred
in contravention to Section 12B(3) of the Banking Regulations Act.
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W.A.No.2 of 2016
10.The learned Single Judge of this Court, pending the writ
petition, after taking note of the arguments and materials placed, granted
an order of ad-interim injunction and the Single Bench of this Court, vide
order dated 26.11.2015, has vacated the said interim order and making a
challenge to the same, the present Writ Appeal is filed.
11.This Court heard the submissions of Mr.M.S.Krishnan, learned
Senior Counsel, assisted by Mr.Aniruth Krishnan, learned counsel
appearing for the foreign investors, viz., private respondents 18 to 21,
who would submit that, in the light of the observations made by this
Court in Para No.12 of the order, dated 03.11.2020, nothing remains for
further adjudication in this Writ Appeal.
12.This Court heard the submissions of Mr.C.Mohan for M/s.King
and Partridge, learned Standing Counsel for Reserve Bank of India, and
Mr.R.Sankaranarayanan, learned Senior Counsel, assisted by
Mr.Kuberan, for M/s.Rank Associates, learned counsel appearing for the
3rd respondent/Tamilnadu Mercantile Bank Limited, who would submit
that all necessary resolutions have also been passed, referred to in the
Status Report.
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W.A.No.2 of 2016
13.Mr.Karthik Seshadri, learned counsel appearing for the
petitioner in C.M.P.No.12139 of 2020 in W.A.No.2 of 2016, filed by
Mr.R.Kannan Adityan, would submit that, in the event of this Court
holding that nothing remains for further adjudication in this Writ Appeal
and passes appropriate orders, the petitioner may be granted liberty to
work out his remedy in the pending writ petition, however, according to
Mr.M.S.Krishnan, learned Senior Counsel appearing for the private
respondents 18 to 21, even in the writ petition, no adjudication is
necessary.
14.This Court has carefully considered the rival submissions and
also perused the materials placed before it.
15.The present Writ Appeal is preferred against the vacating of the
interim order and dismissal of M.P.No.2 of 2013 in W.P.(MD) No.12543
of 2013, and pending the Writ Appeal, the appellant did not have the
benefit of any interim order.
https://www.mhc.tn.gov.in/judis/
W.A.No.2 of 2016
16.This Court, vide order dated 03.11.2020, made in W.A.No.2 of
2016, etc., has permitted the elected Directors to assume charge and
further made it clear that the assumption of charge by the elected
Directors is subject to the outcome of the pending litigations.
17.The learned counsel for the appellant has withdrawn his memo
of appearance, and despite the name of the appellant appears in the cause
list, there is no representation on his behalf.
18.In the light of the above facts and circumstances, especially in
the light of the fact that the Writ Appeal is preferred against the vacating
of the interim order and dismissal of the said petition, this Court is of the
considered view that nothing remains for further adjudication and
therefore, this Writ Appeal is dismissed, confirming the order, dated
26.11.2015, made in M.P.No.2 of 2013 in W.P.(MD) No.12543 of 2013.
No costs. Consequently, connected Miscellaneous Petitions are also
dismissed.
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W.A.No.2 of 2016
19.Insofar as the plea made by Mr.Karthik Seshadri, learned
counsel appearing for Mr.R.Kannan Adityan, is concerned, if the
petitioner is so advised, and if it is available to him under law, he may be
at liberty to work out his remedy in the pending writ petition in
W.P.(MD) No.12543 of 2013.
20.Parties are at liberty to apply for certified copy of this order on
payment of necessary charges.
(M.S.N., J.) (N.K.K., J.)
29.01.2021
mkn
Internet : Yes
Index : No
Speaking order
To
1.The Reserve Bank of India,
having its Head Office at
Reserve Bank of India Building,
Fort, Mumbai 400 001,
through its Governor
https://www.mhc.tn.gov.in/judis/
W.A.No.2 of 2016
M. SATHYANARAYANAN, J.
and
N. KIRUBAKARAN, J.
mkn
2.The Deputy Governor,
Reserve Bank of India,
Central Office Building,
Shahid Bhagad Singh Marg,
Mumbai – 400 001.
3.The Managing Director & CEO,
Tamil Nadu Mercantile Bank Ltd.,
having its registered office at 57,
V.E. Road, Tuticorin – 628 002,
State of Tamil Nadu.
W.A.No.2 of 2016
29.01.2021
https://www.mhc.tn.gov.in/judis/
