C/SCA/710/2014 ORDER

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

SPECIAL CIVIL APPLICATION NO. 710 of 2014
Wi!
CIVIL APPLICATION NO. "2## of 2014
I$
SPECIAL CIVIL APPLICATION NO. 710 of 2014
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BABULAL JAJODIA & 5....Petitioner(s)
Versus
UNION OF INDIA & 2....Respondent(s)
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Appern!e"
#R #A$OO# % $&A&' ADVO(A)* +or t,e Petitioner(s) No. - . /
#R A#AR N B&A))' ADVO(A)* +or t,e Respondent(s) No. 0
#R %) DAV*' $enior (entr1 2o3ern4ent (ounse1 +or t,e
Respondent(s) No. -
#R INDRAVADAN PAR#AR' ADVO(A)* +or t,e Respondent(s) No. 2
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(ORA#" HONOURABLE THE CHIEF JUSTICE MR.
BHAS%AR BHATTACHAR&A
nd
HONOURABLE MR.JUSTICE J.B.PARDIWALA

D'( ) 20*0"*2014
ORAL ORDER
+PER ) HONOURABLE THE CHIEF JUSTICE MR. BHAS%AR
BHATTACHAR&A,
B5 +i1in6 t,is $pe!i1 (i3i1 App1i!tion' t,e petitioners ,3e
pr5ed +or de!1rin6 se!tion 2(-)(o) o+ t,e $e!uriti7tion nd
Re!onstru!tion o+ Finn!i1 Assets nd *n+or!e4ent o+ $e!urit5
Interest A!t' 2882' 9t,e $e!uritistion A!t' ,ere+ter: s ultra vires t,e
(onstitution o+ Indi. ),e petitioners ,3e 1so pr5ed +or de!1rin6
pr6rp, 2.- o+ t,e RBI 6uide1ines ;no<n s In!o4e Re!o6nition nd
Prudenti1 Nor4s s ultra vires t,e (onstitution o+ Indi nd t,e
$e!uritistion A!t.
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C/SCA/710/2014 ORDER
B5 our !o44on (AV =ud64ent dted 2>
t,
Apri1 28-> pssed in
$pe!i1 (i3i1 App1i!tion No. ->?8@ o+ 28-2 nd n1o6ous 4tters'
<e ,3e disposed o+ A? <rit.pp1i!tions risin6 si4i1r !,11en6e B5
prt15 11o<in6 t,e <rit.pp1i!tions B5 ,o1din6 t,t pr6rp, 2.- o+
t,e RBI 2uide1ines is intra vires Arti!1e -> o+ t,e (onstitution o+ Indi
nd' t t,e s4e ti4e' ,o1din6 t,t t,e 4ended pro3isions o+
se!tion 2(-)(o) o+ t,e $e!uritistion A!t re ultra vires t,e Arti!1e ->
o+ t,e (onstitution nd t,e oB=e!t o+ t,e $e!uritistion A!t itse1+ nd
!onseCuent15' <e restored t,e pro3isions <,i!, eDisted er1ier' i.e.
prior to t,e 4end4ent o+ 288> nd eDisted t t,e ti4e o+ de!ision o+
t,e $upre4e (ourt in t,e !se o+ M'-.i' C!(/i0'12 L.. 3. U$io$
of I$.i' reported in AIR 2004 SC 2471.
For t,e se1+s4e resons nd 6rounds re!orded in our !o44on
(AV =ud64ent dted 2>
t,
Apri1 28-> pssed in $pe!i1 (i3i1
App1i!tion No. ->?8@ o+ 28-2 nd n1o6ous 4tters' <e prt15
11o< t,is <rit.pp1i!tion B5 ,o1din6 t,t t,e 4ended pro3isions o+
se!tion 2(-)(o) o+ t,e $e!uritistion A!t re ultra vires t,e Arti!1e ->
o+ t,e (onstitution nd t,e oB=e!t o+ t,e $e!uritistion A!t itse1+ nd
!onseCuent15' <e restore t,e pro3isions <,i!, eDisted er1ier' i.e.
prior to t,e 4end4ent o+ 288>. Ee' ,o<e3er' ,o1d t,t pr6rp,
2.- o+ t,e RBI 2uide1ines is intra vires Arti!1e -> o+ t,e (onstitution o+
Indi.
Ee 4;e it !1er t,t <e ,3e restri!ted our s!rutin5 on15 to
t,e +oresid t<o Cuestions nd <e ,3e not 6one into t,e ot,er
Cuestions in3o13ed in t,is <rit.pp1i!tion.
),is <rit.pp1i!tion is prt15 11o<ed !!ordin615. No !osts. In
3ie< o+ dispos1 o+ t,e 4in 4tter' !onne!ted (i3i1 App1i!tion' i+
n5' stnds disposed o+.
+BHAS%AR BHATTACHAR&A5 CJ.,
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C/SCA/710/2014 ORDER
+J.B.PARDIWALA5 J.,
F41e;
Page 3 of 3