Supreme Court of India
Kotak Mahindra Bank Ltd. v. Hindustan National Glass & Ind. Ltd. and Ors.
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
What the Court ordered
We hold that wilful defaults of parties of dues under a derivative transaction with a bank are covered by the Master Circular and this we hold not because the RBI wants us to take this view, because this is our judicial interpretation of the Master Circular.
Judgment, page 43
From the headnote
Bank/Banking - Master Circular on wilful default issued by Reserve Bank of India - Whether covers a derivative transaction - Held: In view of the mischief the Master Circular seeks to remedy and the purpose of the Master Circular, the definition of 'wilful default' would be construed to mean not only wilful defaults of dues by a bonuwer to the bank under /ender-borrower relationship, but also wilful defaults of dues by a client of the bank under other banking transactions such as bank guarantees and derivative transactions - Reserve Bank of India, Act, 1934 - ss. 45A(c)(v), 45C and 45E.
Authorities it was built on
- 1992 Peerless General Finance and Investment Co. Ltd. and Anr v. Reserve Bank of India
- 1954 Tolaram Relumal and Another v. The State of Bombay
- 1962 Joseph Kuruvilla Vellukunnel v. The Reserve Bank of India and Others
- 1979 Desh Bandhu Gupta & Co. & Ors. v. Delhi Stock Exchange Assn. Ltd.
- 1991 Rattan Chand Hira Chand v. Askar Nawaz Jung (dead) by L.rs. and Ors.
- 2010 Securities and Exchange Board of India v. Ajay Agarwal
- 2010 Icici Bank Limited v. Official Liquidator of Aps Star Industries Ltd. and Ors.
- 2006 Ganesh Bank Kurundwad Ltd. and Ors. v. The Union of India and Ors.
- 2009 Bhuwalka Steel Indus. Ltd. v. Bombay Iron & Steel Labour Bo. & Anr.
- 2007 Chandigarh Housing Board v. Devinder Singh and Anr.
- 1967 Commissioner of Sales Tax, Madhya Pradesh v. Jaswant Singh Charan Singh
- 1967 Shah & Co. Bombay v. The State of Maharashtra & Anr.
- 1964 Bombay Steam Navigation Co. (1953) Private Ltd. v. Commissioner of Income-tax, Bombay
- 1989 Commissioner of Income-tax, Lucknow v. Bazpur Co-operative Sugar Factory Ltd.
- 1965 Ram Rattan Gupta v. Director of Enforcement, Foreign Exchange Regulation, and Another
- 2010 Common Cause (a Regd. Society) v. Union of India & Anr.
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