Supreme Court of India · 1962-03-07
JOSEPH KURUVILLA VELLUKUNNEL vs THE RESERVE BANK OF INDIA AND OTHERS(With connected petiti
- Citation / case number
- SC 1961/91
- Court
- Supreme Court of India
- Petitioner
- JOSEPH KURUVILLA VELLUKUNNEL
- Respondent
- THE RESERVE BANK OF INDIA AND OTHERS(With connected petiti
- Author
- SINHA, BHUVNESHWAR P.(),KAPURL.,HIDAYATULLAH, M.,SHAHC.,MUDHOLKARR.
- Bench
- SINHA, BHUVNESHWAR P.(CJ),KAPUR, J.L.,HIDAYATULLAH, M.,SHAH, J.C.,MUDHOLKAR, J.R.
Judgment text excerpt
The Supreme Court upheld the constitutional validity of Section 38 of the Banking Companies Act, 1949, which allows the Reserve Bank of India to apply for the winding up of a banking company if its continuance is deemed prejudicial to depositors' interests. The Court ruled that the provisions do not violate Articles 14 and 19(1)(f) and (g) of the Constitution, as they are designed to protect depositors and ensure the stability of the banking system. The application for winding up of the Palai Central Bank Ltd. was thus allowed, affirming the High Court's decision.