1999 (9) TMI 766

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....an for the Appellant. JUDGMENT Usha, J. - This is an appeal from the order passed by the CLB, Southern Region Bench, Chennai in an application filed by the appellant. The appellant is a depositor in St. Marry's Finance Ltd. ('the Company'). He made an application under section 45QA(2) of the Reserve Bank of India Act, 1934 ('the Act'), contending that the company failed to repay the deposit ....

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....nder section 391 is pending before this Court, no orders can be passed under section 45QA of the Act. 3. We do not find any merit in this contention. On going through the order under challenge, we find that even though there is a reference to the overriding effect of the provisions contained under Chapter IIIB in the light of section 45Q, as a matter of fact, the Board has considered the applic....

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....nder this sub-section, give a reasonable opportunity of being heard to the non-banking financial company and the other persons interested in the matter." 4. It is clear from the above provision that while considering an application under section 45QA, the CLB has to take into consideration the necessity to safeguard the interest of the company and the depositors. It is necessary to look into pu....

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....elevant consideration. In examining the question whether an individual application filed by a creditor is to be separately considered and relief granted, it is only just and proper for the CLB to have taken into consideration the pendency of a proceeding under section 391 before this Court. Therefore we are of the view that while exercising discretionary power under section 45QA, the CLB has no....