- (1.) 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 convenience, we have considered facts of the main case for deciding the common issues which are involved in all these appeals.
(2.) The appellant, who has approached this Court, was not a party to the litigations before the High Court, but has been constrained 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. Permission was granted to the present appellant and therefore, this appeal.
(3.) The appellant is Deposit Insurance and Credit Guarantee Corporation (hereinafter referred to as 'the Corporation'). The function of the Corporation is to insure deposits made by depositors with the banking companies and the said Corporation has been constituted under the provisions of Section 3(1) of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (hereinafter referred to as 'the Act'). The Act had been enacted with a very laudable purpose. Normally a person deposits his savings or invests his money by way of a saving bank account or a fixed deposit with banking companies, including cooperative banks, without taking much care of ascertaining financial condition of the bank, possibly because of the trust reposed by him in the Reserve Bank of India, which regulates the banking business in the country.;