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Reserve Bank of India vs Big Kancheepuram Cooperative Town Bank Ltd. & Anr.

Transfer Petition (Civil) · 2022 INSC 1095Decided 14 Oct 2022
Transfer Petition (Civil) Nos. 659-678 of 2022

Background

The Reserve Bank of India had amended the Banking Regulation Act framework and issued a circular (dated 25 June 2021) on appointment of Managing Directors/Whole-Time Directors in Primary (Urban) Co-operative Banks. Numerous writ petitions challenging the validity of the Banking Regulation (Amendment) Act, 2020 and/or this circular were filed by various cooperative banks (including Big Kancheepuram Cooperative Town Bank Ltd.) before multiple High Courts: Madras, Kerala, Karnataka, Chhattisgarh, Allahabad, Rajasthan, Punjab and Haryana, Andhra Pradesh, Bombay, Madhya Pradesh, Uttarakhand, Karnataka and Patna. RBI sought to have all these pending petitions transferred and consolidated before a single High Court.

Decision Breakdown

The Supreme Court noted that all the pending writ petitions raised common questions regarding the validity of the same Amendment Act and/or circular. In the interest of justice and judicial efficiency, the Court ordered that all such writ petitions across the various High Courts stand transferred to the High Court of Madras for final disposal, and directed the Chief Justice of the Madras High Court to assign them to a single Bench for expeditious hearing. The Court also directed that parties be permitted to participate via virtual platform given petitions originated from different states, and ruled that any future petitions on the same subject filed in any High Court shall automatically stand transferred to the Madras High Court.

Lesson Learnt

When multiple High Courts across the country are simultaneously seized of writ petitions raising the same legal question (here, the validity of a banking regulation and an RBI circular), the Supreme Court can consolidate them before one High Court to avoid conflicting decisions and ensure efficient, uniform adjudication.

Official source (sci.gov.in)View Judgment (PDF)

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