OVERLAND INVESTMENT LIMITED Vs. STATE
LAWS(CAL)-1996-9-9
HIGH COURT OF CALCUTTA
Decided on September 12,1996

OVERLAND INVESTMENT LTD. Appellant
VERSUS
STATE OF WEST BENGAL Respondents





Cited Judgements :-

BALLYGUNGE SIKSHA SAMITY VS. SUSMITA BASU [LAWS(CAL)-2000-2-17] [REFERRED TO]
HINDUSTHAN NATIONAL GLASS AND INDUSTRIES LIMITED VS. RESERVE BANK OF INDIA [LAWS(CAL)-2009-9-46] [REFERRED TO]


JUDGEMENT

BHAGABATI PROSAD BANERJEE, J. - (1.)These are the four appeals, one appeal has been preferred by Overland Investment Ltd., the second one by Verona Commercial and Investment P. Ltd. and the third one including one by Sri Sankar Gope by Sanchayanai Savings and Investment P. Ltd. all being aggrieved by and dissatisfied with the order dated 21st March, 1996 passed by the learned trial Judge. The writ application was filed by the respondent, State of West Bengal by way of public interest litigation before the learned trial Judge praying for appointment of a Special Officer or Commissioner for the purposes of taking charges and possession of all the assets and moveable and immoveable properties including the Bank Accounts not only standing in the name of the aforesaid Companies but also standing in the name of its Directors, relatives and family members and for certain other orders including the order of attachment and making investigation into the affairs of the said companies and ultimately for framing the scheme for refund of the money received from millions of depositors. In the writ application it was stated that the provisions of the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987 issued under the provisions of the Reserve Bank of India Act (hereinafter referred to as the 'Reserve Bank Directions') were wholly inadequate to meet with the present situation that has been brought about in these cases before the learned trial Judge. It was precisely submitted that the said directions of the Reserve Bank of India did not provide any provision for refund of the depositors money in case it is found that the said companies were not carrying on business in accordance with the directives of the Reserve Bank of India and in case there had been a case of siphoning of funds deposit made by the depositors. By the said order the learned trial Judge heard the matter at a length principally on the question of preliminary objection raised by the appellants that the State of West Bengal has no locus standi to file the said application by way of public interest litigation. Further, it was alleged that the learned trial Judge heard the matter only for the purpose of consideration of the preliminary point as to the maintainability of the writ application at the instance of the State but also granted an interim order of injunction directing the said companies and the directors who were restrained by way of an order of injunction from transferring, disposing of, alienating, encumbering and / or from dealing with in any manner whatsoever, all the assets and properties, moveable and immoveable of the respondents Nos. 2 and 6 and / or giving effect or further effect to any agreement relating to their names or standing in the names of the aforesaid companies, their sub-offices, branches and/or held by their agents and employees for and on behalf of the said companies and their directors. The Directors of the subsidiary and group of companies and sister concerns are restrained from transferring, disposing of, alienating, encumbering and/or dealing with all properties and assets, moveable and immoveable standing in the name of subsidiary companies or group of companies until further orders or without leave of the Court. The appellants were also restrained from dealing with, disposing of, transferring, encumbering, alienating in any manner whatsoever the assets and properties, moveable or immovable until further orders of the Court and also the assets and properties, moveable and immoveable standing in the name of their family members, employees, subsidiaries, group of companies and sister concerns were also directed not to dispose of without the leave of the Court
(2.)As to the other prayers for appointment of Commissioner or Special Officer for taking charge of the assets and properties the learned trial Judge was of the view that the learned trial Judge will consider and pass order at a later stage
(3.)The writ application was filed by the State of West Bengal by way of a public interest litigation for obtaining relief in favour of persons who are economically and socially oppressed and unable to approach the Court for vindication of their fundamental or legal rights complaining against the State action or inaction and also for championing the cause of the numerous small, depositors of the three different residuary non-banking companies
;


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