Discretion under deposit repayment relief: pending company scheme was a relevant factor, and jurisdiction was not abdicated.

Section 45QA(2) of the Reserve Bank of India Act confers a discretionary power that must be exercised in light of the company's interests, depositors' interests and public interest. A pending scheme under section 391 of the Companies Act was a relevant factor because the proposed arrangement could affect all creditors, including the depositor-applicant. The Company Law Board therefore did not decline relief on an irrelevant consideration or abdicate jurisdiction; it assessed the request in the context of the ongoing company proceeding and preserved the applicant's ability to seek recourse if the scheme was not sanctioned. The challenge to the order accordingly failed.

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Issues: Whether the Company Law Board erred in declining immediate relief under section 45QA(2) of the Reserve Bank of India Act, 1934 on the ground that a scheme under section 391 of the Companies Act, 1956 was pending before the High Court, and whether such reliance amounted to abdication of jurisdiction or consideration of an irrelevant factor.

Analysis: The power under section 45QA(2) is discretionary and must be exercised with due regard to the interests of the company, the depositors, and public interest. The pending proceeding under section 391 of the Companies Act, 1956 was a relevant circumstance because the eventual scheme could affect all creditors, including the depositor-applicant. The Board therefore did not ignore its jurisdiction, but assessed the application in the context of the pending company proceeding and preserved the applicant's position by allowing recourse if the scheme was not sanctioned.

Conclusion: The Company Law Board did not act on an irrelevant consideration and did not abdicate its jurisdiction under section 45QA(2); its order was valid and the challenge failed.

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