Civil Law
Mode of Citation- ILC-2015-SC-CIVIL-....
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Civil Law
Mode of Citation- ILC-2015-SC-CIVIL-....
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ILC-2015-SC-CIVIL-Jul-2

Deposit Insurance & Credit Gurantee Corp. Vs. Ragupathi Ragavan

Head Note

Civil Law  - Deposit Insurance and Credit Guarantee

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Deposit Insurance and Credit Guarantee Corporation Act, 1961, Section 3(1), 16 and 21 - Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961, Regulation 22 - Bank Deposits - Insurance of - Liability of Appellant Corporation - As per the Scheme of Section 16(1), upon the bank being ordered to be wound-up, the original petitioners and other depositors had a right to recover Rs.1 lakh or the amount deposited, whichever was less, from the Official Liquidator - After payment to the above extent is made to each depositor, if any amount is available at the disposal of the Official Liquidator, which he might have recovered from the borrowers or from other sources, he has to pay the said amount to the extent to which the amount had been paid by the Corporation as per the provisions of Section 21 of the Act - High Court or any other authority has no power to direct payment in excess of Rs.1 lakh by ignoring statutory provisions of the Act and the Regulations made thereunder - High Court had exceeded its authority while giving a direction to the Official Liquidator to make payment to the depositor amount in excess of Rs.1 lakh, which is not in consonance with the statutory provisions and therefore liable to be set aside - Official Liquidator and the Special Officer directed to act in accordance with the statutory provisions.

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Topic(s)-Bank deposits - Insurance of - Liability of Insurer







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