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Why shouldn’t all LVB merger petitions be transferred to Bombay HC: Supreme Court docket

RBI has sought switch of all of the petitions to the Bombay HC to keep away from multiplicity of proceedings and conflicting judgments.

The Supreme Court docket on Friday sought response from numerous shareholders and others on why all of the petitions associated to merger of Lakshmi Vilas Financial institution (LVB) with DBS Financial institution India, pending earlier than completely different excessive courts, shouldn’t be transferred to the Bombay Excessive Court docket.

RBI has sought switch of all of the petitions to the Bombay HC to keep away from multiplicity of proceedings and conflicting judgments.

Justice MM Shantanagoudar issued discover to numerous shareholders together with AUM Capital Markets and Indiabulls Housing Finance, amongst others. It posted the matter for additional listening to in January.

At the moment 5 petitions difficult the LVB merger scheme with DBS Financial institution, issued by the central authorities on November 25, are being heard by 4 completely different HCs of Madras, Bombay, Karnataka and Delhi. The amalgamation scheme has already come into pressure from November 27.

The banking regulator instructed the SC that it will be within the curiosity of justice to have all of the issues consolidated and heard collectively to keep away from multiplicity of proceedings. “Nice prejudice is being induced to RBI and to all of the stakeholders concerned due to parallel proceedings being performed by the 4 HCs when the problems concerned in all of the proceedings are equivalent or related,” counsel Liz Mathews said within the switch petition.

RBI additionally mentioned that it’s important that there are not any contradictory or inconsistent judgments handed by completely different HCs on the identical situation.

“Such inconsistent instructions are prone to hamper the efficient implementation of the scheme and could be towards the curiosity of the depositors.

This can be in consonance with the general public coverage of India,” the petition said, including that it had grow to be tough for RBI and its counsel to conduct proceedings in numerous HCs resulting from Covid pandemic.

Numerous petitions earlier than HCs have alleged that by allowing the merger, RBI was overlooking its personal guidelines by permitting “a back-door entry” to a international banking entity into the Indian market.

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