D.K.Ravichandran v. Union of India

O R D E R (Order of the Court was made by Dr.Anita Sumanth J.) Mr.Ramanraj, learned counsel for the petitioner, Ms.P.J.Anitha, learned Central Government Standing Counsel for R1 and Mr.Thiagarajan, learned counsel appearing for Mr.P.Giridharan, learned counsel for R2 furnish a copy of order dated 26.04.2024 passed by the first Bench of this Court in W.P.No.17521 of 2020 and connected batch on an identical issue, which they say is applicable on all fours to the present matter.

¶2The petitioners in the aforesaid batch of Writ Petitions were also shareholders and bond holders of Lakshmi Vilas Bank (LVB) as the present petitioner. The challenge was to the action of the Reserve Bank of India (RBI) amalgamating LVB with DBS Bank India Limited purportedly under Section 45 of the Banking Regulation Act, 1949 and writing off of the Tier II bonds and shares.

¶3The result in the aforesaid batch is at paragraph 14 of the order which Page4 of 6 we extract below: The Result:

¶14In view of the above;

(i) The decision to amalgamate LVB with DBIL is not interfered with;

(ii) For the findings and observations made supra and taking recourse to Covenant 5(3)(ii) and Covenant 5(3)(iii) of the impugned scheme, we direct RBI to carry out the exercise of valuing the shares and assets of both DBIL and LVB as on the date before the amalgamation and on that basis, take a decision afresh on (a) reduction of the value of shares and (b) writing off the Tier – II Bonds;

(iii) We trust that the same would be done keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible;

(iv) The above exercise shall be carried out preferably within a period of four months.

¶15These writ petitions, accordingly, stand disposed of with the aforesaid observations and directions. There shall be no orders as to costs.

¶4As against the aforesaid order, RBI filed an appeal before the Supreme Court in SLP (c) Diary No.23542 of 2024, wherein, vide order dated

24.07.2024, notice has been issued to the respondents and the directions set out under sub-paragraphs (ii) and (iv) of paragraph 14 of order dated 26.04.2024 have been stayed.

¶5We have recorded the trajectory that the matter has taken thus far. In light of the identity of facts and legal position, the ratio of order dated

26.04.2024 and the result as extracted supra will apply to the present case as well. Page5 of 6

¶6In fine, this Writ Petition stands disposed of in terms of order dated

26.04.2024 passed in W.P.Nos.17521 of 2020 and connected batch. No costs. Connected Miscellaneous Petition is closed. (A.S.M.,J.) (M.S.K.,J.) 06-02-2026 Index: Yes/No Speaking order SL To

¶1Union of India Rep by the Additional Secretary to Government, Ministry of Finance, Department of Financial Service (Bankingh Division) 3rd Floor, Jeevan Deep Building, Sansad Marg,

¶2Reserve Bank of India rep by its Chair man and Managing Director, 6, Parliament Street,

¶3Lakshmi Vilas Bank Limited, Salem Road, Kathaparai, Karur - 639 006. Karur District.

¶4DBS Bank India Limited, Ground Floor Nos. 11 and 12 , Capital Point, Baba Kharak Singh Marg, Connaught Place, WPoNo.o3353oofo2021 DR.ANITAoSUMANTHoJ. AND MUMMINENIoSUDHEERoKUMARoJ. SL WPoNo.o3353oofo2021 AND WMPoNO.o3821oOFo2021 06-02-2026 Page6oofo6

2026:MHC:525 Page1 of 6 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 06-02-2026 CORAM THE HON'BLE DR.JUSTICE ANITA SUMANTH AND THE HON'BLE MR.JUSTICE MUMMINENI SUDHEER KUMAR AND WMP NO. 3821 OF 2021 D.K.Ravichandran S/o. D. R. Krishnaswamy, Old No. 11, New No. 5/1, Poosari Street, Near Surampatti Nal Road, Erode - 638 009. ..Petitioner(s) Vs 1. Union of India Rep by the Additional Secretary to Government, Ministry of Finance, Department of Financial Service (Bankingh Division) 3rd Floor, Jeevan Deep Building, Sansad Marg, 2. Reserve Bank of India rep by its Chair man and Managing Director, Page2 of 6 6, Parliament Street, 3. Lakshmi Vilas Bank Limited, Salem Road, Kathaparai, Karur - 639 006. Karur District. 4. DBS Bank India Limited, Ground Floor Nos. 11 and 12 , Capital Point, Baba Kharak Singh Marg, Connaught Place, ..Respondent(s) PETITION filed under Article 226 of the Constitution of India praying for the issuance of Writ of Certiorarified Mandamus to call for the records relating to the Scheme called the Lakshmi Vilas Bank Limited (Amalgamation with DBS Bank India Limited) Scheme, 2020, on the file of the 1st Respondent published in the Gazette of India Extraordinary Part II - Section III Sub Section(i), dated 25.11.2020, and quash the same as illegal and ultra vires in so far as Clause 7 of the said Scheme is concerned, and direct the Respondents to pay compensation for 15, 346 shares held by the Petitioner, in Lakshmi Vilas Bank, the 3rd Respondent herein, as on 27.11.2020 at the rate of Rs. 150/- per share together with interest at 12 percent per annum from 27.11.2020 till date of payment Page3 of 6 For Petitioner(s): K.Ramanraj For Respondent(s): Ms. P.J. Anitha, CGSC for R1 Mr.Thiagarajan for Mr. P. Giridharan, for R2 No appearance – R3 & R4