Bombay HC refuses to stay merger of Lakshmi Vilas Bank, DBS
Mumbai, Nov 26: The Bombay High Court on Thursday refused to stay Lakshmi Vilas Bank's (LVB) merger with DBS Bank India Ltd which will be effective from November 27.
A division bench of Justices Nitin Jamdar and Milind Jadhav was hearing petitions filed by a group of promoters of the ailing Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd, one of its shareholders, challenging the merger.
"We are refusing the interim relief sought by the petitioners to stay the amalgamation. The petitions shall be placed for hearing on December 14 when the respondents (Reserve Bank of India, LVB and DBS Bank India) shall file their affidavits in reply," the court said.
On Wednesday, the Union Cabinet gave approval to the Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Ltd to protect the interests of LVB's depositors and employees.
As per the Scheme of Amalgamation, the entire paid-up share capital of LVB will be written off, resulting in shareholders losing their investment.
The petitioners challenged this part of the scheme and sought an interim stay to the amalgamation.
The court, however, said the petitions pertain to a monetary claim, and it needs to be heard and decided finally.
"Indiabulls is a shareholder of the Lakshmi Vilas Bank and stands to lose Rs 188 crore due to this amalgamation," the company's counsel Dinyar Madon said.
Senior counsel Ravi Kadam, appearing for the RBI, opposed the pleas and said the amalgamation decision was taken in larger public interest and in the interest of the depositors and employees of the Lakshmi Vilas Bank.
"There are 20 lakh accounts in LVB. An emergent situation arose which prompted the RBI to step in and take action. The entire liability of LVB is now the liability of a more solid bank (DBS)," Kadam said.
DBS India Ltd's lawyer, senior counsel Janak Dwarkadas argued that LVB's condition was deteriorating since March 2019 and the RBI had to take prompt corrective action.
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SC to hear plea on air pollution crisis in Delhi-NCR on Dec 17
New Delhi (PTI): The Supreme Court on Monday said it will list for hearing on December 17 a plea related to worsening air pollution levels in Delhi-NCR.
A bench comprising Chief Justice Surya Kant and justices Joymalya Bagchi and Vipul M Pamcholi took note of the submissions of senior advocate Aprajita Singh, who is assisting it as an amicus curiae, that though the preventive measures are there in place but the key issue was of their poor implementation by the authorities.
Singh said till this court directs something, the authorities do not comply with the protocols which are already there.
“This is coming up before a three judges bench on Wednesday. It will come up,” the CJI said.
Another lawyer referred to an application relating to the health issue of children, and said schools, despite the earlier orders, are holding outdoor sports activities.
“Despite the order of this court, Schools have found ways and means to have these sporting activities.. it is taking place. The CAQM (Commission for Air Quality Management) is again citing the order of this court,” the amicus also said.
“We know the problem and let us pass orders which can be complied with. There are some directions which can be forcibly imposed. In these urban metropolitan cities people have their own lifestyle. But the poor…,” the CJI said.
The amicus said the poor labourers are the worst ones to suffer.
Earlier the bench had said the plea against air pollution cannot be treated as a "customary" case to be listed only during the winter months only.
It had said the case will be taken twice in a month to find out short and long-term solutions to the menace.
Delhi on Monday choked under a thick blanket of smog, with the Air Quality Index (AQI) settling at 498, which falls in the higher spectrum of 'severe' category.
The air quality was 'severe' at 38 stations while it was 'very poor' at two stations. Jahangirpuri, which recorded an AQI of 498, recorded the worst air quality amongst all 40 stations.
According to the Central Pollution Control Board, an AQI between 0 and 50 is considered 'good', 51 to 100 'satisfactory', 101 to 200 'moderate', 201 to 300 'poor', 301 to 400 'very poor', and 401 to 500 'severe'.
The AQI in Delhi had climbed to 461 on Sunday and marked the city's most polluted day this winter and the second-worst December air quality day on record, as weak winds and low temperatures trapped pollutants close to the surface.
