Heard Mr.B.S. Patel, learned advocate for the applicants.
Attention is invited to the provisions of Section 24 of the Banking Regulation Act, 1949 (hereinafter referred to as 'the Act'), and more particularly, sub-section (6) thereof, to submit that penal interest under sub-sections (4) and (5) of Section 24 of the Act would amount to penalty within the meaning of sub-section (4) of Section 47 of the said Act. Attention is invited to sub-section (4) of Section 47 of the Act, which provides that no complaint shall be filed against any Banking Company in any Court of law in respect of any contravention or default in respect of which any penalty has been imposed by the Reserve Bank of India under this Section. It is submitted that the penal interest imposed under Section 24 of the Act would amount to penalty within the meaning of Section 24 of the Act and as such, the complaint could not be filed against the present applicants.
Having regard to the submissions advanced by the learned advocate for the applicants, notice returnable on 14th September 2009.
In the meanwhile, it would be open for the applicants to seek an adjournment in the proceedings of Criminal Case No.3089 of 2002, pending in the Court of the learned Additional Chief Judicial Magistrate, Navsari.
Mr.M.R.
Mengdey, learned Additional Public Prosecutor, waives service of notice on behalf of the respondent No.1-State of Gujarat.
To be listed on the First Board. Direct service is permitted qua respondent No.2.
(Harsha Devani, J) Aakar Top