COMMON CAUSE (A REGD. SOCIETY) versus UNION OF INDIA & ANR.

COMMON CAUSE (A REGD. SOCIETY) versus UNION OF INDIA & ANR.

Control and reduction of NPAs and implementation of measures suggested by petitioner fall within the domain of the Executive and Legislature, not judiciary; courts should defer to legislative and executive policy decisions in complex economic matters and cannot issue writs or directions unless enforcement of fundamental rights under Part-III of Constitution is established, which is not made out in this case.

Parties
Petitioner: Common Cause (A Rego. Society); Respondent: Union of India; Respondent: Anr.
Jurisdiction
India
Judgment Date
18 August 2010
Procedural Posture
Writ Petition (c) No. 291 of 1998 / Final Disposition
Outcome
Writ petition and intervention application disposed of. No costs.
Legal Topics
Non Performing Assets (npas), Bank Fraud, Judicial Deference, Separation of Powers, Statutory Authority
Public Interest Litigation Banking Law Constitutional Law Non Performing Assets (npas) Bank Fraud Judicial Deference Separation of Powers Statutory Authority

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Parties

Common Cause (A Rego. Society)

Petitioner

Union of India

Respondent

Anr.

Respondent

Procedural Posture

Writ Petition (c) No. 291 of 1998 / Final Disposition

Legal Issues

  1. 1 Whether legislative and administrative measures undertaken by Union Government for recovery/control of Non-Performing Assets (NPAs) and bank frauds are effective.
  2. 2 Whether the Court should issue writs/directions to implement suggested measures for NPAs.

Ratio Decidendi

Control and reduction of NPAs and implementation of measures suggested by petitioner fall within the domain of the Executive and Legislature, not judiciary; courts should defer to legislative and executive policy decisions in complex economic matters and cannot issue writs or directions unless enforcement of fundamental rights under Part-III of Constitution is established, which is not made out in this case.

Court Disposition

Writ petition and intervention application disposed of. No costs.

Orders

  • Copy of this order to be placed before Committee of Experts under the Chairmanship of Ex-Deputy Governor of Reserve Bank of India.