LAWS(SC)-1970-2-1

RUSTOM CAVASJEE COOPER RUSTOM CAVASJEE COOPER T M GURUBUXANI Vs. UNION OF INDIA

Decided On February 10, 1970
RUSTOM COWASJEE COOPER Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) THE Majority Judgment of the court was delivered by

(2.) RUSTOM Cavasjee Cooper hereinafter called 'the petitioner'-holds shares in the central Bank of India Ltd., the Bank of Baroda Ltd., theUnion Bank of India Ltd., and the Bank of India Ltd., and has accountscurrent and fixed deposit-with those Banks ; he is .also a director of theCentral Bank of India Ltd. By these petitions he claims a declaration thatthe Banking Companies (Acquisition and Transfer of Undertakings) Ordinance 8 of 1969 promulgated on 19/07/1969, and the Banking Companies(Acquisition and Transfer of Undertakings) Act, 22 of 1969 which replacedthe Ordinance with certain modifications impair his rights guaranteed underArticles 14, 19 and 31 of the Constitution, and are on that account invalid.

(3.) DURING the last two decades the Reserve Bank reorganised thebanking structure. A number of units which accounted for a small sectionof the banking business were amalgamated under directions of the ReserveBank. The total number of commercial banking institutions was reducedfrom 566 in 1951 to 89 in 1969-73 scheduled and 16 non-scheduled.