The Supreme Court dismissed the petition of minority shareholders of Bank of Rajasthan (BoR), now merged with private sector banking giant ICICI, that sought the quashing of approval granted by banking regulator RBI for the merger of the two banks.
A bench comprising Justices D K Jain and H L Dattu dismissed the petition that also sought scrutiny of the extraordinary general meeting (EGM) of BoR shareholders, in which the merger was approved.
The bench agreed with senior advocate Abhishek Manu Singhvi, appearing for BoR, who submitted it had concluded the EGM as mentioned under section 44 A of the RBI Act. The section deals with the guidelines for mergers and amalgamations of private sector banks.
Singhvi also submitted the certificate issued by the company secretary of BoR who had chaired the EGM of the firm, held in Kolkata.
The Apex Court did not agree with the petition that the EGM of June 21 was illegal and was attended by very few people, as there was uncertainty over the meeting.
"The EGM was stayed by a local court in the morning and later by 2 O'clock, the Calcutta High court had stayed the local court's order. There was a confusion and the meeting was held in that scenario," said R P Somani's (the petitioner) counsel requesting the Apex Court to quash RBI approval granted to merger on August 21, 2010.
BoR was merged with ICICI Bank on August 12, following the approval of the Reserve Bank of India. As per the terms and conditions, 25 shares of ICICI bank were alloted for every 118 shares of BoR.
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