IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. __________ OF 2016 Mumbai District Central Co-operative Bank Limited …PETITIONER v. Reserve Bank of India & Anr …RESPONDENTS INDEX S.No Particulars Page 1. Proforma A-C 2. Synopsis D-E 3. Petition 4. Vakalatnama 5. Memorandum of Registered Address 6. List of Documents 7. Certificate of Advocate 8. Exhibit A: Copy of impugned circular dated 14.11.2016 9. Exhibit B: Copy of banking license issued to Petitioner 10. Exhibit C: Copy of notification dated 08.11.2016 issued by Respondent No. 2 being 3407(E) 11. Exhibit D: Copy of circular of Respondent No. 1 being RBI/2016-17/112 DCM (Plg) No.1226/
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INDEX [images.assettype.com]images.assettype.com/barandbench/import/2016/11/draft_petition.pdfSince there is no agriculture production in the Mumbai district, the Petitioner is catering
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. __________ OF 2016
Mumbai District Central Co-operative
Bank Limited …PETITIONER
v.
Reserve Bank of India & Anr …RESPONDENTS
INDEX
S.No Particulars Page
1. Proforma A-C
2. Synopsis D-E
3. Petition
4. Vakalatnama
5. Memorandum of Registered Address
6. List of Documents
7. Certificate of Advocate
8. Exhibit A: Copy of impugned circular dated
14.11.2016
9. Exhibit B: Copy of banking license issued to
Petitioner
10. Exhibit C: Copy of notification dated 08.11.2016
issued by Respondent No. 2 being 3407(E)
11. Exhibit D: Copy of circular of Respondent No. 1
being RBI/2016-17/112 DCM (Plg) No.1226/
10.27.00/2016-17 dated 08.11.2016
12. Exhibit E: Copy of notification allowing certain
persons to accept discontinued currency notes
13. Exhibit F: Copy of corrigendum dated 09.11.2016
issued by the Respondent No. 2 to original
notification
14. Exhibit G: Copy of notice dated 09.11.2016 sent by
the Petitioner to the Respondent No. 1.
15. Exhibit H: Copy of notice dated 11.11.2016 sent by
the Petitioner to the Respondent No. 1
16. Exhibit I: Copy of notice dated 15.11.2016 sent by
the Petitioner to the Respondent No. 1
17. Exhibit J: Copy of bye-laws of the Petitioner
18. Affidavit in Support of Petition
For ABG & Associates
Advocates for the Petitioner
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. __________ OF 2016
Mumbai District Central Co-operative
Bank Limited …PETITIONER
v.
Reserve Bank of India & Anr …RESPONDENTS
PROFORMA
Office notes, memorandum of
quorum, appearance and Court’s
order or direction and
Prothonotary’s order.
Court’s or Judge’s Order
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. __________ OF 2016
Mumbai District Central Co-operative
Bank Limited …PETITIONER
v.
Reserve Bank of India & Anr …RESPONDENTS
PROFORMA
Office notes, memorandum of
quorum, appearance and Court’s
order or direction and
Prothonotary’s order.
Court’s or Judge’s Order
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. __________ OF 2016
Mumbai District Central Co-operative
Bank Limited …PETITIONER
v.
Reserve Bank of India & Anr …RESPONDENTS
PROFORMA
Office notes, memorandum of
quorum, appearance and Court’s
order or direction and
Prothonotary’s order.
Court’s or Judge’s Order
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. __________ OF 2016
Mumbai District Central Co-operative
Bank Limited …PETITIONER
v.
Reserve Bank of India & Anr …RESPONDENTS
SYNOPSIS
A.) List of important dates and events
S.No Date Event Exhibit
No.
Page
1. 12.02.1975 The Petitioner was
incorporated and
registered under the
Maharashtra Co-operative
Societies Act, 1960, in the
year 1974 and started its
functioning on 12th
of
February, 1975. It is
licensed to operate as a
bank under the relevant
provisions of the Banking
Regulation Act, 1949.
B
2. 08.11.2016 The Respondent No. 2
whilst exercising its
powers under section
26(2) of the Reserve Bank
of India Act, 1934, issued
a notification by which
existing currency notes of
INR 500.00 and INR
1,000.00 ceased to be
legal tender. This
notification was published
C
in the official gazette in
Part II, Section 3(ii),
notification 3407(E).
Paragraph 1 of the
primary notification
allowed “every banking
company defined under
the Banking Regulation
Act, 1949 (10 of 1949)”
to deposit the
discontinued currency
with the Reserve Bank of
India and to receive credit
for the same. Paragraph 2
of the primary
notification, which is
relevant to the present
petition, allowed “any
Issue Office of the
Reserve Bank or any
branch of public sector
banks, private sector
banks, foreign banks,
Regional Rural Banks,
Urban Cooperative Banks
and State Cooperative
Banks” to receive
discontinued currency
notes from members of
the public at large in the
manner provided therein.
3. 08.11.2016 The Respondent No. 1, on
the same day, i.e on the
8th of November, 2016,
issued a circular being
RBI/2016-17/112 DCM
(Plg)
D
No.1226/10.27.00/2016-
17 setting down the
guidelines to implement
the primary notification
4. 08.11.2016 The Respondent No. 2
also published another
notification in the official
gazette notifying certain
categories of persons who
were permitted to accept
the discontinued currency
notes as legal tender for
their goods and/or
services.
E
5. 09.11.2016 The Respondent No. 2
published a corrigendum
to the primary notification
in the official gazette.
This corrigendum, in
essence, made paragraph
2 of the primary
notification applicable to
all co-operative banks in
addition to other classes
of banks.
F
6. 09.11.2016
&
11.11.2016
Notices were sent by the
Petitioner to the
Respondent No. 1
G
H
7. 14.11.2016 The Respondent No. 1
published the impugned
circular prohibiting
district central co-
operative banks from
either providing the
facility to exchange
A
discontinued currency
notes with new ones, or
allowing account holders
to deposit discontinued
currency notes
8. 15.11.2016 Notice sent by the
Petitioner to the
Respondent No. 1 in
relation to the impugned
circular
I
9. June 2009 As per the revival scheme,
the mill undertakings
ought to have been fully
operational within 18
months from being
awarded the bid
10. Present day The mill undertakings
which ought to have been
fully operational by now
after entering into the
joint ventures, are still not
functioning evenly close
to their intended capacity.
However, the Respondent
Nos. 1 and 2 have not
taken any steps to
terminate the joint-
venture agreements.
Hence this petition.
B.) Points to be heard:
That the impugned circular is in excess of the Respondent No. 1’s
authority and powers.
That the impugned circular ought to be quashed and set aside.
C.) Acts/Rules to be relied upon
The Constitution of India, 1950
The Banking Regulation Act, 1949
The Reserve Bank of India Act, 1934
The National Bank for Agriculture and Rural Development, 1981
D.) Authorities to be cited
As required for the Application
For ABG & Associates
Advocates for the Petitioner
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. ____________ OF 2016
In the matter of Articles 14, 19, 21, and
226 of the Constitution of India, 1950;
and
In the matter of section 26(2) of the
Reserve Bank of India Act, 1934;
and
In the matter of circular issued by the
Reserve Bank of India bearing reference
number RBI/2016-17/130 DCM (Plg)
No.1273/10.27.00/2016-17;
and
In the matter of notification published by
the Central Government through the
Ministry of Finance on the 8th
of
November, 2016;
In the matter of:
Mumbai District Central Co-operative )
Bank Limited, Mumbai Bank Bhavan, )
207, Dr. D.N Road, Fort, )
Mumbai – 400 001, ) …PETITIONER
v.
1. Reserve Bank of India, )
through the Governor, )
Central Office Building )
18th Floor, Shahid Bhagat Singh )
Road, Mumbai – 400 001 )
)
2. Union of India, through the )
Ministry of Finance, Department )
OfEconomic Affairs, 2nd
Floor, )
AaykarBhavan, Maharishi Karve )
Marg,New Marine Lines, )
Mumbai – 400 020 ) …RESPONDENTS
TO,
THE HONOURABLE CHIEF JUSTICE AND
OTHER HONOURABLE PUISNE JUDGES
OF THIS HONOURABLE HIGH COURT OF
JUDICATURE AT BOMBAY.
THE HUMBLE PETITION OF THE PETITIONER ABOVENAMED:
1. The present writ petition is being filed by the Petitioner above
named in relation to a circular issued by the Respondent No. 1 (the
Reserve Bank of India) on the 14th
of November, 2016, bearing
reference number RBI/2016-17/130 DCM (Plg)
No.1273/10.27.00/2016-17 (hereinafter referred to as the
“impugned circular” for the convenience of this Hon’ble Court). A
copy of this impugned circular is being annexed to this petition as
“Exhibit A”. By this circular, the Respondent No. 1 has restricted
the ability of the Petitioner to carry on its lawful banking business as
per the banking license obtained by it. The Petitioner submits that
the impugned circular is, inter alia, arbitrary in nature, in excess of
the Respondent No. 1’s authority, and is in violation of the
provisions of section 26 of the Reserve Bank of India Act, 1934.
2. The Petitioner (“The Mumbai District Central Co-operative Bank
Ltd.”) is a central financing agency for all affiliated co-operative
societies in Mumbai district and is popularly known as "MUMBAI
BANK". The Respondent No. 1 is the Reserve Bank of India, an
autonomous statutory body formed under the provisions of the
Reserve Bank of India, 1934, and derives its powers from that
statute. The Respondent No. 2 is the branch of the government
responsible for overseeing affairs relating to India’s monetary
policies, including those relating to currency.
3. The facts in brief that have led to the filing of the present writ
petition shall now be set out by the Petitioner below:
A. The Petitioner was incorporated and registered under the
Maharashtra Co-operative Societies Act, 1960, in the year
1974 and started its functioning on 12th
of February, 1975.
The Petitioner is a “central co-operative bank” under the
provisions of the Banking Regulation Act, 1949, and the
National Bank for Agriculture and Rural Development Act,
1981. A central co-operative bank is the principal co-
operative society in a district in a State, the primary object of
which is the financing of other co-operative societies in that
district. The purpose of a central co-operative bank is to act as
the banker to other industry and purpose-specific co-operative
societies within a district, for example milk co-operative
societies, agricultural co-operative societies, etc.
B. The Petitioner is currently acting as a central co-operative
bank under the terms of a licence obtained by it from the
Reserve Bank of India, issued under section 22(1) read with
section 56(o) of the Reserve Bank of India Act, 1934. A copy
of this licence, the latest iteration of which was issued on the
20th
of December, 2011, is being annexed to this petition as
“Exhibit B”.
C. Since there is no agriculture production in the Mumbai
district, the Petitioner is catering to the financial needs of
non-agricultural co-operative societies such as Urban Co-op.