Case Note & Summary
The petitioner in Writ Petition No. 1893 of 2019, GTL Infrastructure Limited, a company incorporated under the Companies Act, 1956, filed a writ petition against Canara Bank, Corporation Bank, Indian Bank, Vijaya Bank, IDBI Bank, Life Insurance Corporation of India Limited, and Edelweiss Asset Reconstruction Company Limited. The petitioner claimed that during 2007-2008, it availed financial facilities from various banks and financial institutions, including respondent Nos. 1 to 6, to expand its telecom business. Owing to unforeseen circumstances, increased competition, etc., the telecom industry suffered extensively and the petitioner was unable to comply with its loan obligations. The petitioner sought a writ of mandamus directing respondent Nos. 1 to 6 to forthwith comply with paragraph 6.4 of the Master Circular dated 1 July 2015 issued by the Reserve Bank of India (RBI). A related petition, Writ Petition (L) No. 223 of 2020, was filed by GTL Limited against the Union of India, RBI, IDBI Bank as Monitoring Institution, and numerous other banks and financial institutions, including overseas branches and an asset reconstruction company. Both petitions were heard together by a Division Bench comprising S. C. Dharmadhikari and R. I. Chagla, JJ. On February 3, 2020, the court issued Rule, with the respondents waiving service by consent, and made the Rule returnable forthwith. The judgment excerpt does not contain any further proceedings, arguments, or final decision. The extract ends abruptly while narrating the petitioner's inability to comply with financial commitments.
Issue of Consideration
Whether the respondent banks are obligated to comply with paragraph 6.4 of the RBI Master Circular dated 1 July 2015.
Final Decision
The court issued Rule and made it returnable forthwith, but final determination not provided.
