Bombay High Court Adjudicates Writ Petitions Filed by Depositors of PMC Bank Seeking Relief from Withdrawal Restrictions. Court Examines Validity of RBI Directions and Protection of Depositors' Interests under Relevant Banking and Co-operative Laws.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

A batch of writ petitions and a public interest litigation were filed before the Bombay High Court by various depositors and account holders of the Punjab and Maharashtra Co-operative Bank Limited (PMC Bank), along with a consumer society, against the Reserve Bank of India, Union of India, State of Maharashtra, and the bank itself. The petitioners challenged the restrictions imposed by the RBI on the bank's operations, particularly the limits on cash withdrawals, which they contended had caused severe hardship and violated their rights as depositors. The main relief sought included directions for the release of their deposits with interest, lifting of the withdrawal cap, and an appropriate mechanism to safeguard their funds. The matters were heard together, and the court examined the legal and regulatory framework governing multi-state co-operative banks, the powers of the RBI to issue directions under the Banking Regulation Act, and the extent of depositor protection under the Deposit Insurance and Credit Guarantee Corporation Act. Arguments were advanced by multiple counsel representing the diverse petitioners and the respondent authorities. The available part of the judgment does not contain the court's final decision or reasoning.

Issue of Consideration

WRIT PETITION (L) NO.3030 OF 2019

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Case Details

2019 LawText (BOM) (12) 26

Writ Petition (L) No. 3030 of 2019 along with WPL No. 2918 of 2019, WPL No. 3044 of 2019, PILL No. 90 of 2019 and WP No. 11889 of 2019

2019-12-20

Mr.S.B.Talekar, Mrs.Gayatri Singh, Mr.Ahmed Abdi, Ms.Tamsin Monis, Mr.Venkatesh Dhond, Mr.Anil Singh, Mr.Mihir Mody, Ms.P.H.Kantharia

Haresh Tekchand Raisinghani & Ors., Prajakta R. Waikar Mahale & Ors., Guru Nanak Vidyak Society, Consumer Action Network & Ors., Sanjay Lodha & Ors.

Union of India & Ors., Reserve Bank of India & Ors., Punjab & Maharashtra Co-operative Bank Limited & Ors.

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Nature of Litigation

Writ Petitions and Public Interest Litigation by depositors of Punjab & Maharashtra Co-operative Bank Ltd. against the Reserve Bank of India, Union of India, and others seeking relief from restrictions on withdrawal of deposits and protection of depositors' interests.

Remedy Sought

Directions to allow withdrawal of deposits, to set aside RBI restrictions, and to ensure return of deposits along with interest.

Filing Reason

Following the RBI's imposition of restrictions on PMC Bank due to alleged irregularities, depositors were unable to access their money.

Procedural History

The petitions were filed and listed together before the High Court; other procedural details not mentioned.

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