Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1934: Supervisory powers of RBI Reserve Bank of India |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Reserve Bank of India, 1934: Supervisory powers of RBI – Held: RBI has wide supervisory powers over financial institutions – For ‘public interest’ the RBI is empowered to issue any directive to any banking institution, and monitor the conduct of every NBFC – Banking Regulation Act, 1949 – s.35A.Reserve Bank of India, 1934: s.45K – Authority of RBI to issue directions for ensuring effective implementation of its orders – Held: Any direction by the RBI, is compelling and enforceable similarly like the provisions of the RBI Act by its very nature – For ensuring effective implementation of relevant directions, RBI is not only vested with curative powers but also preventive powers – RBI can also issue directions to ensure that the relevant orders/directions are effectively followed.Negotiable Instruments Act, 1881: ss.8 and 9 – ‘Holder in due course’ – An obligation has been imposed on the transferee of the promissory notes, to be deemed to be a ‘Holder in due course’, that the notes should have been acquired in good faith; after exercising reasonable care and caution about the holder’s title.Code of Civil Procedure, 1908: s.34 – Held: As per s.34 CPC, award of interest is a discretionary exercise, steeped in equitable considerations – Interest is payable for different purposes such as compensatory, penal, etc.Code of Civil Procedure, 1908: Necessary party – Held: On facts, when a claim in the suit was relatable to embargo by the RBI, it was necessary to implead RBI in the litigation, for getting more clarity on the issue – The plaintiff omitted to do so at their own peril despite the defense set out on this basis.Doctrines/Principles: Principle of dominus litus – The plaintiff is dominus litus, and cannot be compelled to seek relief against anyone. Doctrines/Principles: Principle of waiver/acquiescence – Applicability – Held: Plaintiff accepted payment from defendant as due settlement of its claims – Plaintiff’s failure to raise protest and demand for interest at the earliest possible stage, amounted to sub-silencio acceptance – Accordingly, plaintiff is barred from raising this demand after several months applying the principle of waiver/ acquiescence. Doctrines/Principles: Principle of Constructive Res Judicata – Held: The cause of action for the plaintiff accrued the first time, when the defendant allegedly failed to pay timely interest on delayed payment – Since such a claim was not raised in the writ court, the subsequent suit of plaintiff is barred by the principle of Constructive Res Judicata.Words and Phrases: Term “Public interest” – Meaning of – Held: The term ‘Public interest’ has no rigid definition – It has to be understood and interpreted in reference to the context in which it is used – The concept derives its meaning from the statute where it occurs, the transaction involved, the state of society and its needs. |
Judge | Hon'ble Mr. Justice Hrishikesh Roy |
Neutral Citation | 2022 INSC 3 |
Petitioner | Small Industries Development Bank Of India |
Respondent | M/s. Sibco Investment Pvt. Ltd. |
SCR | [2022] 1 S.C.R. 913 |
Judgement Date | 2022-01-03 |
Case Number | 8 |
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