The Gujarat High Court has scheduled the next hearing on the case on December 11.
The RBI has prohibited PDCB from transacting any business under Section 35 (A) of the Banking Regulations Act 1949.
After hearing Ajay Mehta, advocate for the petitioner, the Gujarat High Court had issued a show-cause notice to PDCB on October 21, 2003.
After two months, none of the respondents have filed an affidavit-in-reply. The matter was listed on November 29, 2003, when justice C K Buch directed the matter to be listed for hearing on December 11, 2003.
The main contention of the petitioner is that as per the directives contained in Section 18 of the Banking Regulations Act, DUCBL was forced by the RBI to deposit the cash reserve and demand time liability amount with the PDCB.
The RBI had intimated the petitioner on May 25, 1998, that if it failed to comply with such directives, its licence would be cancelled.
In pursuance with the RBI direction, the petitioner had deposited the amount with the PDCB, repayment of which has been stayed by the Gujarat High court.
Advocate H V Chhatrapathi appeared for the RBI and G S Thakkar appeared for the Gujarat State Co-operative Bank. The petitioner is represented by advocate Ajay R Mehta.
