DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION CO. AND ANR.

Reserve Bank of India is to conduct an enquiry regarding the conduct of specified bank officials in connection with Skipper group bank guarantees, determine responsibility, and report to the Supreme Court for further orders.

Parties: Applicant: Delhi Development Authority; Respondent: Skipper Construction Co.; Intervener: Reserve Bank of India
Jurisdiction: India
Judgment Date: 11 February 1997
Procedural Posture: Special Leave Petition (civil) / Order on Enquiry and Directions
Outcome: Directions issued for regulatory enquiry; Petitions disposed of.
Legal Topics: Bank Guarantee Irregularities, Regulatory Enquiry Into Banking Operations

Banking Bank Guarantee Irregularities Regulatory Enquiry Into Banking Operations

Case Brief

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Full judgment text Legal principles 1 Authorities cited 4 Party arguments 2

Parties

Delhi Development Authority

Applicant

Skipper Construction Co.

Respondent

Reserve Bank of India

Intervener

Procedural Posture

Special Leave Petition (civil) / Order on Enquiry and Directions

Legal Issues

1 Whether certain officers and directors of New Bank of India deliberately or intentionally misused or abused their power in extending bank guarantees to Skipper group of companies
2 What loss, if any, was caused to the bank as a result and what is the liability for restitution

Ratio Decidendi

Court Disposition

Directions issued for regulatory enquiry; Petitions disposed of.

Orders

Reserve Bank of India directed to conduct enquiry via committee of two Deputy Governors.
All responses/explanations and relevant documents to be forwarded to RBI.