S KRISHNAMACHARI Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Writ Petition was preferred by the petitioner for declaration that the action of the 2nd respondent, Indian Bank in closing the 3rd respondent- branch, i. e. , Indian Bank, Maduranthakanallur Branch, as illegal, arbitrary and opposed to the Reserve Bank of India guidelines and against public interest.

(2.) ACCORDING to the petitioner, he is a resident of maduranthakanallur village, which is about 12 Kms. from Chidambaram and 15 Kms. from Sethiathope in the State of Tamil Nadu . There are about 1500 families residing in his village. The 2nd respondent, Indian Bank, established a branch fifteen years ago, which is the only commercial bank in the village. His account number is 2677 and there is no other nationalized bank or primary co-opeartive bank functioning in his village. The villagers of adjoining nine villages have their account with the 3rd respondent-branch, but the 2nd respondent proposed to close the only branch, which was available for nine villages, namely, (i)Maduranthakanallur, (ii) Odakanallur, (iii) Poonthotam, (iv) Devangudi, (v)Palayanserthangudi, (vi) Vakkur, (vii) Kizhanatham, (viii) Tharasur, and (ix)Sedhiyur and to merge it with their other branch at Sethiathope, which is 15 kms. away. The action, according to the petitioner, is not only opposed to the policty of the Reserve Bank of India (hereinafter after referred to as "rbi"), but also against the public interest, as it will leave the villagers of the nine villages without any bank in a closed locality. Further case of the petitioner is that there are about 5000 account holders in the 3rd respondent-Branch and if all the account holders are to travel all the way to Sethiathope, which is 15 Kms. away, they will be put to great hardship as also risk of carrying cash and jewels. The women in the villages, who have formed self-help scheme and deposited their money in the Branch, will also feel difficulty if they are asked to go a long way of 15 Kms. for depositing the amounts.

(3.) THE reason advanced by Indian Bank for proposed merger has been enclosed by 4th respondent at page-21 of the typed set filed by the 4th respondent. THErein, though business position of past four years has been shown, including loss to the tune of 0. 43 lakhs, 2. 32 lakhs and 3. 02 lakhs for the year 1998-99, 1999-2000 and 2000-01, no specific exceptional or unforeseen circumstances has been shown therein for closure of the branch in question.