1997 (3) TMI 629

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... leave to appeal against the judgment of the Delhi High Court dated March 20, 1997, in Letters Patent Appeals Nos. 57 and 56 of 1997, are banking companies governed by the Banking Regulation Act, 1949 (hereinafter referred to as "the Act"). On September 30, 1996, the Central Government, in exercise of its power under Section 45(2) of the Act, made orders of moratorium in respect of the petitioner-....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aid view of the High Court. 5. The submission of learned Counsel for the petitioners in these petitions is that the draft scheme was forwarded by the Reserve Bank of India to the petitioner-banks on March 6, 1997, and that objections to the draft scheme as well as the order dated September 30, 1996, for moratorium have been submitted on March 20, 1997. The submission further is that since the o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ral Government under Section 45(7) of the Act in the light of the comments that are made by the Reserve Bank of India on the said objections and that the apprehension of the petitioners that the said objections will not be considered by the Central Government is unfounded. In view of the said submission urged on behalf of the respondents, we are of the opinion that no fault can be found in the mat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....etitioners, the Central Government should give due consideration to the aforementioned submission that has been made by learned Counsel for the petitioners about their being allowed to continue as non-banking companies after they have paid off the dues of all depositors and creditors. In case the Central Government has not passed an order under Section 45(7) so far they will give due consideration....