RESERVE BANK OF INDIA versus SAHARA INDIA FINANCIAL CORPORATION

RESERVE BANK OF INDIA versus SAHARA INDIA FINANCIAL CORPORATION

In view of the peculiar facts, it would be appropriate for RBI to give an opportunity of hearing to the Corporation; until then, the impugned order will not be effective and interim protection of High Court will not operate.

Source-derived case information.

Parties
Appellant: Reserve Bank of India; Respondent No.1: Sahara India Financial Corp. Ltd.
Jurisdiction
India
Judgment Date
09 June 2008
Procedural Posture
Civil Appeal / Appeal Against Interim Order of High Court
Outcome
Appeal disposed of
Legal Topics
Principles of Natural Justice, Opportunity of Hearing, Interim Order
Administrative Law Principles of Natural Justice Opportunity of Hearing Interim Order

Source-derived case record

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Parties

Reserve Bank of India

Appellant

Sahara India Financial Corp. Ltd.

Respondent No.1

Procedural Posture

Civil Appeal / Appeal Against Interim Order of High Court

Legal Issues

  1. 1 Whether opportunity of hearing should be given by RBI to the Corporation before passing order restraining from accepting deposits
  2. 2 Whether the principles of natural justice were complied with

Ratio Decidendi

In view of the peculiar facts, it would be appropriate for RBI to give an opportunity of hearing to the Corporation; until then, the impugned order will not be effective and interim protection of High Court will not operate.

Court Disposition

Appeal disposed of

Orders

  • Respondent No.1 to be given opportunity of hearing by RBI on 12.06.2008.
  • RBI to pass a fresh order after hearing.