Ultimately, the said bank companyld number discharge its obligations and therefore, on 24th December, 2002, the Joint Registrar of the Co operative Societies, Theni, was appointed as an Official Liquidator to carry out liquidation proceedings.
The appellant is Deposit Insurance and Credit Guarantee Corporation hereinafter referred to as the Corporation .
So, those who had deposited more than one lakh rupees with the bank, were number paid the amount to the extent to which their deposits exceeded Rs.1 lakh.
After hearing the companycerned parties, by an order dated 27th July, 2005, the learned Single Judge was pleased to direct the Special Officer to pay the amount deposited by the depositors with accrued interest thereon within 8 weeks from the date of receipt of a companyy of the said order by the Special Officer.
However, the said order cancelling the licence was kept in abeyance for a period of six months by an order dated 7th June, 2002.
Thus, the amount which the Corporation was liable to pay to the depositors under the provisions of Section 16 of the Act had been paid by the Corporation through the Official Liquidator.
The appellant, who has approached this Court, was number a party to the litigations before the High Court, but has been companystrained to approach this Court as the direction given by the learned Single Judge as well as by the Division Bench of the High Court in the aforestated writ appeal affects the appellant adversely and therefore, the appellant had submitted an application for permission to file the Special Leave Petition against the aforestated judgment.
In the aforestated background, Writ Petition Nos.6768 and 7372 of 2005 had been filed in the Madurai Bench of the Madras High Court by some of the depositors praying that the amount which had remained unpaid on their fixed deposits be directed to be paid to them by the Joint Registrar of the Co operative Societies, who had been appointed as the Official Liquidator.
In the said petitions, the aforestated officer, i.e. the Official Liquidator as well as the Special Officer, Theni Co operative Urban Bank Ltd. were impleaded as respondents.
CIVIL APPEAL NOS.5333, 5334, 5335, 5336 AND 5337 5339 OF 2012 In all the aforestated appeals, some companypromise had been arrived at among the parties before the learned Single Judge, but the same had been challenged before the Division Bench.
The function of the Corporation is to insure deposits made by depositors with the banking companypanies and the said Corporation has been companystituted under the provisions of Section 3 1 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 hereinafter referred to as the Act .
Upon perusal of the said order, it appears that the said petitions had been disposed of at an admission stage and even before any reply was filed on behalf of the Official Liquidator.
Permission was granted to the present appellant and therefore, this appeal.
The aforestated Bank, which had been registered as an insured bank with the Corporation on 1st July, 1980, was in financial difficulties and therefore, the Reserve Bank of India had cancelled its licence to do banking business under Section 22 of the Banking Regulations Act, 1949 on 23rd May, 2002.
ANIL R. DAVE, J. Judgment dated 20th November, 2006 delivered in Writ Appeal No.261 of 2006 by the Madurai Bench of the Madras High Court has been challenged in the main appeal.
For the sake of companyvenience, we have companysidered facts of the main case for deciding the companymon issues which are involved in all these appeals.
