SEKAR REPORTER
Bank Amalgamation case full order copy /THE HON’BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICEANDTHE HON’BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHYW.P.Nos.17521, 17958, 19162, 19177, 19360, 19367,
BY SEKAR REPORTER · APRIL 27, 2024
view of the above;
(i) The decision to amalgamate LVB with DBIL is not interfered with;
(ii) For the findings and observations made supra and taking recourse to Covenant 5(3)(ii) and Covenant 5(3)(iii) of the impugned scheme, we
direct RBI to carry out the exercise of valuing the shares and assets of both DBIL and LVB as on the date before the amalgamation and on that basis, take a decision afresh on (a) reduction of the value of shares and (b) writing off the Tier – II
Bonds;
(iii) We trust that the same would be done keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible;
view of the above;
(i) The decision to amalgamate LVB with DBIL is not interfered with;
(ii) For the findings and observations made supra and taking recourse to Covenant 5(3)(ii) and Covenant 5(3)(iii) of the impugned scheme, we
direct RBI to carry out the exercise of valuing the shares and assets of both DBIL and LVB as on the date before the amalgamation and on that basis, take a decision afresh on (a) reduction of the value of shares and (b) writing off the Tier – II
Bonds;
(iii) We trust that the same would be done keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible;
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 23.02.2024
DELIVERED ON : 26.04.2024
CORAM :
THE HON’BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
AND
THE HON’BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
W.P.Nos.17521, 17958, 19162, 19177, 19360, 19367,
19438, 19460, 19463, 19761, 19764 and 19930 of 2020;
638, 776, 1310, 1314, 1332, 1379, 1387, 1391, 2573,
7388, 7391, 18999, 19003 and 19006 of 2021;
9501, 9801, 9940, 14557, 14558, 14566, 14576,
14581, 14589, 18154, 18156 and 24502 of 2022;
847, 5766, 16768, 18323 & 29896 of 2023; 4182 of 2024; and W.P (MD) No.18857 of 2020
[W.P.No.17521 of 2020]
AUM Capital Market Pvt. Ltd.
Represented by its Authorised Signatory
Mr.D.Balasubramanium, No.5, Lower Rawdon Street
“Akasdeep” Kolkatta – 700 020
West Bengal. .. Petitioner
Vs.
- Union of India
Represented by the Additional Secretary
Department of Financial Services, Banking Division Ministry of Finance, Jeevan Deep Building Sansad Marg, New Delhi – 110 001. - Reserve Bank of India
Represented by its Chairman
Central Office, 13th Floot, Central Office Building Shahid Bhagat Singh Marg Fort, Mumbai – 400 001. - The Lakshmi Vilas Bank Limited
Represented by its authorised officer
Salem Road, Kathaparai
Karur – 639 006, Tamil Nadu, India. - DBS Bank India Limited
Represented by its Authorised Officer
Ground Floor, Nos.11 and 12 Capitol Point, Baba Kharak Singh Marg Connaught Place, Delhi – 110 001. - DBS Bank Limited
(Formerly The Development Bank of Singapore Ltd.)
Marina Bay Financial Centre
Tower 3, Marina Bay
Singapore – 018 982. .. Respondents
Prayer in W.P.No.17521 of 2020: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorarified mandamus, quashing the impugned amalgamation scheme,
G.S.R.No.731(E) dated 25.11.2020 notified by the 1st respondent and the consequent press release of the 2nd respondent dated 25.11.2020 and the impugned moratorium order, S.O.4127 dated 17.11.2020 issued by the respondent 1 or any other revised Scheme without a consultative process or re-examination of the valuation or through a price discovery by an open, fair and transparent bidding process by way of a public announcement or in the alternative issue a mandamus directing that the shareholders of the 3rd respondent bank should be treated as the shareholders of the merged entity, DBIL.
For the Petitioner(s) in W.P.No.17521 of 2020 : Mr.Arvind P.Datar, Senior Counsel & Mr.P.S.Raman, Senior Counsel for M/s.Ramaswamy Meyyappan,
Mr.Viyyash Kumar,
Mr.Arjun Suresh,
Mr.Rohit Rajerishi
& Mr.Ankur Kashyap
For the Petitioner(s) in W.P.No.17958 of 2020 : Mr.Kunal Katariya
assisted by Ms.Rohini Ravikumar & Mr.Ayush Agarwala
For the Petitioner(s) in W.P.Nos.18875 of 2021 and 29886 of 2023 : Dr.M.R.Venkatesh
For the Petitioner(s) in
W.P.Nos.19162, 19177,
19360 & 19367 of 2020 : Ms.Ramya Subramaniam
For the Petitioner(s) in W.P.No.19438 of 2020 : Mr.T.D.Selvan Babu
For the Petitioner(s) in
W.P.Nos.19460, 19463,
19761 & 19764 of 2020 : Mr.T.K.Bhaskar, Mr.Pranav.G,
Ms.Pranaya Dayalu & Mr.P.Arvind
For the Petitioner(s) in W.P.No.19930 of 2020 : Mr.C.V.Shailandran
For the Petitioner(s) in W.P.No.638 of 2021 : Mr.Jayesh B.Dolia Senior Counsel for M/s.Aiyar and Dolia
For the Petitioner(s) in
W.P.Nos.776, 1314
& 1332 of 2021 : Ms.Narmada Sampath
For the Petitioner(s) in W.P.No.1310 of 2021 : Mr.B.Dhanaraj
For the Petitioner(s) in
W.P.Nos.1379, 1387 & 2573 of 2021 : Mr.K.Ramanraj
For the Petitioner(s) in W.P.No.1391 of 2021 : Mr.J.R.K.Bhavanantham
For the Petitioner(s) in
W.P.Nos.7388, 7391,
18999, 19003
& 19006 of 2021 : M/s.Swaminathan Law Associates
For the Petitioner(s) in
W.P.Nos.9501
& 9940 of 2022 : Mr.Ilaya Perumal
Party-in-Person in
W.P.No.9801 of 2022 : Mr.K.Prabhakaran
Party-in-Person in
W.P.No.14557 of 2022 : Mr.Sudhir Kathpalia
For the Petitioner(s) in W.P.No.14558 of 2022 : Mr.Sharath Chandran assisted by Ms.Gobika Nambiar for M/s.Govind Chandrasekhar
For the Petitioner(s) in W.P.No.14566 of 2022 : Mr.Deepak Bhaskar & Associates
For the Petitioner(s) in W.P.No.14576 of 2022 : Mr.Shreyas Jayasimha
For the Petitioner(s) in W.P.No.14581 of 2022 : Ms.Lakshmi Menon
For the Petitioner(s) in W.P.No.14589 of 2022 : Mr.Udaya Holla,
Mr.Naman Jhabakh,
Ms.Abitha Banu & Mr.Vivek Holla
For the Petitioner(s) in W.P.No.18154 of 2022 : Mr.P.H.Arvind Pandian Senior Counsel
assisted by Ms.Harshini Jothiraman & Mr.Arjun Suresh
For the Petitioner(s) in
W.P.Nos.18323
& 847 of 2023 : Mr.V.P.Raman for Mr.M.S.Seshadri,
Mr.K.Seshasayee,
Mr.R.B.Rishab, Ms.Girija.G.P.
& Ms.Shambhavi.G.P
For the Petitioner(s) in W.P.No.24502 of 2022 : Ms.Preeti Mohan, Ms.R.S.Pornima &
Ms.Dhruti Lanker
For the Petitioner(s) in : W.P.No.5766 of 2023 Mr.N.V.Balaji, Mr.N.V.Lakshmi & Mr.N.V.Narayanan
For the Petitioner(s) in : W.P.No.16768 of 2023 Mr.V.Adhivarahan
For the Petitioner(s) in : W.P.(MD).No.335 of 2020 Mr.I.Murugan for Mr.Thirunavukkarasu
For the Petitioner(s) in : W.P.No.18156 of 2022 Mr.Arjun Suresh
For the Petitioner in : W.P.No.4182 of 2024 Ms.D.Harini Yadav
For the Petitioner(s) in :
the impleading petitions Mr.V.Adhivarahan
For the Respondent :
Union of India Mr.AR.L.Sundaresan
Additional Solicitor General assisted by
Mr.K.S.Jeya Ganesh in W.P.Nos.17521 of 2020
& 18323 of 2023,
Mr.B.Sudhir Kumar
Central Govt. Standing Counsel in W.P.No.19438 of 2020,
Mr.V.Chandrasekar Senior Panel Counsel in W.P.No.19930 of 2020,
Dr.D.Simon
Central Govt. Standing Counsel in W.P.Nos.1391 of 2021 & 847 of 2023,
Mr.Rajesh Vivekandandan Additional Solicitor General in W.P.No.5766 of 2023
For the Respondent Reserve Bank of India : Mr.Vijay Narayan Senior Counsel for Mr.P.Giridharan
assisted by Mr.Vivek Shetty,
Mr.Nishant Upadhyay,
Mr.C.Thiagarajan,
Mr.Dhavel Vora
& Mr.Dominic S.David
For Respondent 3 in W.P.No.17521 of 2020 : Ms.R.Uma Suthan
For the Respondent DBS Bank : Mr.R.Parthasarathy
Senior Counsel,
Mr.Satish Parasaran
Senior Counsel,
Mr.R.V.Easwar Senior Counsel
for Mr.Suhrith Parthasarathy,
Ms.Veena Sivaramakrishnan
Mr.Siddhant Kant, Ms.Apeksha, Mr.Dhananjai Charan,
Ms.Disha Khandelwal Amritha.S. &
Mr.Rohit Garg
For the Respondent 6 in W.P.No.17958 of 2020 For the Respondent 6 in W.P.No.1310 of 2021 For the Respondent 7 in W.P.No.18154 of 2022 For the Respondent 8 in W.P.Nos.18156 of 2022, 18323 & 847 of 2023
For the Respondent 7 in : Mr.R.Palaniandavan
W.P.Nos.847 & 18323 of
2023
For the Respondent 6 in W.P.No.24502 of 2022
For the Respondent : SEBI Mr.V.Shivkumar
for M/s.Shivakumar & Suresh
COMMON ORDER
THE CHIEF JUSTICE
Bank Amalgamation case full order copy /THE HON’BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICEANDTHE HON’BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHYW.P.Nos.17521, 17958, 19162, 19177, 19360, 19367,
BY SEKAR REPORTER · APRIL 27, 2024
view of the above;
(i) The decision to amalgamate LVB with DBIL is not interfered with;
(ii) For the findings and observations made supra and taking recourse to Covenant 5(3)(ii) and Covenant 5(3)(iii) of the impugned scheme, we
direct RBI to carry out the exercise of valuing the shares and assets of both DBIL and LVB as on the date before the amalgamation and on that basis, take a decision afresh on (a) reduction of the value of shares and (b) writing off the Tier – II
Bonds;
(iii) We trust that the same would be done keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible;
view of the above;
(i) The decision to amalgamate LVB with DBIL is not interfered with;
(ii) For the findings and observations made supra and taking recourse to Covenant 5(3)(ii) and Covenant 5(3)(iii) of the impugned scheme, we
direct RBI to carry out the exercise of valuing the shares and assets of both DBIL and LVB as on the date before the amalgamation and on that basis, take a decision afresh on (a) reduction of the value of shares and (b) writing off the Tier – II
Bonds;
(iii) We trust that the same would be done keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible;
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 23.02.2024
DELIVERED ON : 26.04.2024
CORAM :
THE HON’BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
AND
THE HON’BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
W.P.Nos.17521, 17958, 19162, 19177, 19360, 19367,
19438, 19460, 19463, 19761, 19764 and 19930 of 2020;
638, 776, 1310, 1314, 1332, 1379, 1387, 1391, 2573,
7388, 7391, 18999, 19003 and 19006 of 2021;
9501, 9801, 9940, 14557, 14558, 14566, 14576,
14581, 14589, 18154, 18156 and 24502 of 2022;
847, 5766, 16768, 18323 & 29896 of 2023; 4182 of 2024; and W.P (MD) No.18857 of 2020
[W.P.No.17521 of 2020]
AUM Capital Market Pvt. Ltd.
Represented by its Authorised Signatory
Mr.D.Balasubramanium, No.5, Lower Rawdon Street
“Akasdeep” Kolkatta – 700 020
West Bengal. .. Petitioner
Vs.
- Union of India
Represented by the Additional Secretary
Department of Financial Services, Banking Division Ministry of Finance, Jeevan Deep Building Sansad Marg, New Delhi – 110 001. - Reserve Bank of India
Represented by its Chairman
Central Office, 13th Floot, Central Office Building Shahid Bhagat Singh Marg Fort, Mumbai – 400 001. - The Lakshmi Vilas Bank Limited
Represented by its authorised officer
Salem Road, Kathaparai
Karur – 639 006, Tamil Nadu, India. - DBS Bank India Limited
Represented by its Authorised Officer
Ground Floor, Nos.11 and 12 Capitol Point, Baba Kharak Singh Marg Connaught Place, Delhi – 110 001. - DBS Bank Limited
(Formerly The Development Bank of Singapore Ltd.)
Marina Bay Financial Centre
Tower 3, Marina Bay
Singapore – 018 982. .. Respondents
Prayer in W.P.No.17521 of 2020: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorarified mandamus, quashing the impugned amalgamation scheme,
G.S.R.No.731(E) dated 25.11.2020 notified by the 1st respondent and the consequent press release of the 2nd respondent dated 25.11.2020 and the impugned moratorium order, S.O.4127 dated 17.11.2020 issued by the respondent 1 or any other revised Scheme without a consultative process or re-examination of the valuation or through a price discovery by an open, fair and transparent bidding process by way of a public announcement or in the alternative issue a mandamus directing that the shareholders of the 3rd respondent bank should be treated as the shareholders of the merged entity, DBIL.
For the Petitioner(s) in W.P.No.17521 of 2020 : Mr.Arvind P.Datar, Senior Counsel & Mr.P.S.Raman, Senior Counsel for M/s.Ramaswamy Meyyappan,
Mr.Viyyash Kumar,
Mr.Arjun Suresh,
Mr.Rohit Rajerishi
& Mr.Ankur Kashyap
For the Petitioner(s) in W.P.No.17958 of 2020 : Mr.Kunal Katariya
assisted by Ms.Rohini Ravikumar & Mr.Ayush Agarwala
For the Petitioner(s) in W.P.Nos.18875 of 2021 and 29886 of 2023 : Dr.M.R.Venkatesh
For the Petitioner(s) in
W.P.Nos.19162, 19177,
19360 & 19367 of 2020 : Ms.Ramya Subramaniam
For the Petitioner(s) in W.P.No.19438 of 2020 : Mr.T.D.Selvan Babu
For the Petitioner(s) in
W.P.Nos.19460, 19463,
19761 & 19764 of 2020 : Mr.T.K.Bhaskar, Mr.Pranav.G,
Ms.Pranaya Dayalu & Mr.P.Arvind
For the Petitioner(s) in W.P.No.19930 of 2020 : Mr.C.V.Shailandran
For the Petitioner(s) in W.P.No.638 of 2021 : Mr.Jayesh B.Dolia Senior Counsel for M/s.Aiyar and Dolia
For the Petitioner(s) in
W.P.Nos.776, 1314
& 1332 of 2021 : Ms.Narmada Sampath
For the Petitioner(s) in W.P.No.1310 of 2021 : Mr.B.Dhanaraj
For the Petitioner(s) in
W.P.Nos.1379, 1387 & 2573 of 2021 : Mr.K.Ramanraj
For the Petitioner(s) in W.P.No.1391 of 2021 : Mr.J.R.K.Bhavanantham
For the Petitioner(s) in
W.P.Nos.7388, 7391,
18999, 19003
& 19006 of 2021 : M/s.Swaminathan Law Associates
For the Petitioner(s) in
W.P.Nos.9501
& 9940 of 2022 : Mr.Ilaya Perumal
Party-in-Person in
W.P.No.9801 of 2022 : Mr.K.Prabhakaran
Party-in-Person in
W.P.No.14557 of 2022 : Mr.Sudhir Kathpalia
For the Petitioner(s) in W.P.No.14558 of 2022 : Mr.Sharath Chandran assisted by Ms.Gobika Nambiar for M/s.Govind Chandrasekhar
For the Petitioner(s) in W.P.No.14566 of 2022 : Mr.Deepak Bhaskar & Associates
For the Petitioner(s) in W.P.No.14576 of 2022 : Mr.Shreyas Jayasimha
For the Petitioner(s) in W.P.No.14581 of 2022 : Ms.Lakshmi Menon
For the Petitioner(s) in W.P.No.14589 of 2022 : Mr.Udaya Holla,
Mr.Naman Jhabakh,
Ms.Abitha Banu & Mr.Vivek Holla
For the Petitioner(s) in W.P.No.18154 of 2022 : Mr.P.H.Arvind Pandian Senior Counsel
assisted by Ms.Harshini Jothiraman & Mr.Arjun Suresh
For the Petitioner(s) in
W.P.Nos.18323
& 847 of 2023 : Mr.V.P.Raman for Mr.M.S.Seshadri,
Mr.K.Seshasayee,
Mr.R.B.Rishab, Ms.Girija.G.P.
& Ms.Shambhavi.G.P
For the Petitioner(s) in W.P.No.24502 of 2022 : Ms.Preeti Mohan, Ms.R.S.Pornima &
Ms.Dhruti Lanker
For the Petitioner(s) in : W.P.No.5766 of 2023 Mr.N.V.Balaji, Mr.N.V.Lakshmi & Mr.N.V.Narayanan
For the Petitioner(s) in : W.P.No.16768 of 2023 Mr.V.Adhivarahan
For the Petitioner(s) in : W.P.(MD).No.335 of 2020 Mr.I.Murugan for Mr.Thirunavukkarasu
For the Petitioner(s) in : W.P.No.18156 of 2022 Mr.Arjun Suresh
For the Petitioner in : W.P.No.4182 of 2024 Ms.D.Harini Yadav
For the Petitioner(s) in :
the impleading petitions Mr.V.Adhivarahan
For the Respondent :
Union of India Mr.AR.L.Sundaresan
Additional Solicitor General assisted by
Mr.K.S.Jeya Ganesh in W.P.Nos.17521 of 2020
& 18323 of 2023,
Mr.B.Sudhir Kumar
Central Govt. Standing Counsel in W.P.No.19438 of 2020,
Mr.V.Chandrasekar Senior Panel Counsel in W.P.No.19930 of 2020,
Dr.D.Simon
Central Govt. Standing Counsel in W.P.Nos.1391 of 2021 & 847 of 2023,
Mr.Rajesh Vivekandandan Additional Solicitor General in W.P.No.5766 of 2023
For the Respondent Reserve Bank of India : Mr.Vijay Narayan Senior Counsel for Mr.P.Giridharan
assisted by Mr.Vivek Shetty,
Mr.Nishant Upadhyay,
Mr.C.Thiagarajan,
Mr.Dhavel Vora
& Mr.Dominic S.David
For Respondent 3 in W.P.No.17521 of 2020 : Ms.R.Uma Suthan
For the Respondent DBS Bank : Mr.R.Parthasarathy
Senior Counsel,
Mr.Satish Parasaran
Senior Counsel,
Mr.R.V.Easwar Senior Counsel
for Mr.Suhrith Parthasarathy,
Ms.Veena Sivaramakrishnan
Mr.Siddhant Kant, Ms.Apeksha, Mr.Dhananjai Charan,
Ms.Disha Khandelwal Amritha.S. &
Mr.Rohit Garg
For the Respondent 6 in W.P.No.17958 of 2020 For the Respondent 6 in W.P.No.1310 of 2021 For the Respondent 7 in W.P.No.18154 of 2022 For the Respondent 8 in W.P.Nos.18156 of 2022, 18323 & 847 of 2023
For the Respondent 7 in : Mr.R.Palaniandavan
W.P.Nos.847 & 18323 of
2023
For the Respondent 6 in W.P.No.24502 of 2022
For the Respondent : SEBI Mr.V.Shivkumar
for M/s.Shivakumar & Suresh
COMMON ORDER
THE CHIEF JUSTICE
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