Page 24 - Banking Finance July 2020

LEGAL UPDATE

LEGAL

CASES
CASES
CASES
CASES
CASES

Govt, RBI asked to file court proceeded to examine and test who may be handicapped by igno-
the validity on the grounds of compe- rance, indigence, illiteracy or lack of
counter plea against co-op tence, granted the Union of India and understanding of the law."

banks ordinance RBI four weeks to file their counter- Noting that advocates were capable
Conceding to the Central government affidavits and thereafter two weeks to enough to approach courts on their
submission that as long as a law is not the petitioner to file a rejoinder. own, if aggrieved, the Delhi High Court
declared ultra vires it cannot be stayed Senior Counsel PH Aravindh Pandian, dismissed the plea. Mishra had made
and interfered with, the Madras High appearing for Big Kanchipuram Coop- a submission before the court in per-
Court refused to grant any interim stay erative Town Bank Ltd, Kanchipuram son and said his PIL was for the wel-
on the select provisions of Banking and Velur Cooperative Urban Bank Ltd, fare of advocates as a class.
Regulation (Amendment) Ordinance Namakkal had submitted that since the The serial PIL filer had earlier asked
2020, which brings cooperative banks ordinance has already been notified,
under the supervision of Reserve Bank the banks are under threat of their courts to direct the Department of Fi-
nancial Services to develop banking
of India (RBI). rights being invaded to administer the
products and schemes for advocates in
Observing that the ambivalence of the society. consultation with the Bar Council of
constitutional provisions have to be India. He had also wanted the Reserve
considered based on constitutional fed- Court rules out any MSME Bank of India to instruct banks to ex-
eralism, and constitutional supremacy, benefits for lawyers. tend collateral-free loans, credit facili-
which outlines the doctrine of separa- ties and other schemes to the lawyer
tion of powers, the first bench compris- The Delhi High Court declined to en- community.
ing Chief Justice AP Sahi and Justice tertain Abhijit Mishra's public interest
SenthilkumarRamamoorthy said: "In litigation (PIL), which wanted advo- With judicial activities affected by the
our opinion, unless there is an immi- cates included in the definition of 'pro- pandemic, law PILs should be for the
nent tangible cause or evidence indi- fessionals' under the Micro, Small and benefit of a class of persons that are
cating actual invasion of the rights of Medium Enterprises Act. Mishra is a "unable to access the courts", said the
the petitioner banks in running the af- lawyer who has majored in financial Bench.
fairs of the society, it would not be economics. Lawyers have been repeatedly press-
appropriate to consider the issue of The Bench of Chief JusticeDN Patel and ing for financial assistance at various
interim relief at this stage." Justice PrateekJalan sternly noted that forums. In fact, recently, two pleas

Following this, the bench on account- PILs should be for the benefit of a class were filed before the Supreme Court.
ing for the time sought by the Addi- of persons that are "unable to access The first asked for nonpayment of rent
tional Solicitor General R Sankara the courts, e.g., the poorest of the for professional premises rented by
Narayanan and RBI counsel, if the poor, illiterates, children," or "people advocates not to be made a ground for

24 | 2020 | JULY | BANKING FINANCE