Yes Bank Case: Madras HC upholds legal validity of RBI’s circular on Additional Tier 1 Capital Bonds

Piyush Bokaria Vs RBI (Madras High Court)

Facts-

The RBI’s master circular dated 01.07.2015 is challenged on the ground that it violates Article 14, 19, 21, 253 and 300-A of the constitution. Further, it is also challenged to be contrary to the provisions of the Companies Act, 2013, the Indian Contract Act, 1872, the Transfer of Property Act, 1882 and the Banking Regulation Act, 1949.

Conclusion-

The Master Circular has a binding effect, as admittedly the petitioners are investors after the Circular had come into effect and they have with open eyes undertaken risks of making financial investments through instruments, the composition whereof is self-explanatory and would operate with binding force on the petitioners.

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