Authority: High Court at Calcutta
Order Date: 25 June 2026
Case Overview
- Parties: Reserve Bank of India (Petitioner and Regulator) vs. Associated Bank of Tripura and other 31 banking companies (collectively the 32 banking companies). Punjab National Bank is acting as the Court Liquidator.
- Proceeding: Application filed under Section 39 of the Banking Regulation Act, 1949 seeking directions for the completion of liquidation of the 32 banks enumerated in the Notification dated 3 June 2025.
- Background: Earlier proceedings (CP No.331 of 1949) had issued several orders concerning the same banks. A communication dated 26 June 2024 indicated RBI's intention to file this application to conclude the liquidation.
- Facts: The exact status, assets, properties, and liabilities of the 32 banks are unknown to all parties, including RBI. No legal embargo exists on the Court to carry out liquidation despite recent amendments to the Companies Act, 2013.
- Statutory Provision: Section 39 of the Banking Regulation Act, 1949 empowers RBI (or other notified banks) to be appointed as the official liquidator, superseding provisions of the Companies Act, 1956.
Final Outcome
- The Court issues the following directions:
1. The Official Liquidator (Punjab National Bank) shall file a report with RBI every three months detailing steps taken toward liquidation.
2. RBI, in its regulator capacity, may approach the Court for further orders to bring the liquidation to an end.
3. The entire liquidation process must be positively completed within six months; the Official Liquidator shall provide RBI with full particulars of assets, properties, and liabilities of all 32 companies.
4. The Official Liquidator is authorized to issue appropriate notices to all concerned parties involved in the liquidation.
- With these directions, the petition CP/1/2026 is disposed of.
Topics: Banking Regulation, Liquidation, Court Order