Supreme Court of India · 1970-02-10
RUSTOM CAVASJEE COOPER vs UNION OF INDIA
- Citation / case number
- SC 1969/60082
- Court
- Supreme Court of India
- Petitioner
- RUSTOM CAVASJEE COOPER
- Respondent
- UNION OF INDIA
- Bench
- SHAH, J.C. & SIKRI, S.M.,SHELAT, J.M. & BHARGAVA, VISHISHTHA,MITTER, G.K. & VAIDYIALINGAM, C.A.,HEGDE, K.S. & GROVER, A.N.,RAY, A.N. & REDDY, P.J. & DUA, I.D.
Judgment text excerpt
The Supreme Court examined the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969, particularly Sections 4, 5, 6, and 15(2), in relation to Articles 14, 19, and 31(2) of the Constitution. The Court held that the Act's provisions, which restrict banks from engaging in non-banking businesses, are discriminatory and infringe upon the fundamental rights guaranteed under Article 19(1)(g). The judgment emphasized that legislative competence must align with constitutional mandates, and the restrictions imposed by the Act were deemed unreasonable, leading to the conclusion that shareholders could challenge such infringements under Article 32.