AIR 1986 KERALA 126 ::(1986) 1 ComLJ 82 ::(1986) Mad LJ(Cri) 82 ::(1985) Ker LT 742

Kerala High Court

Hon'ble Judge(s): K. Bhaskaran , C.J. AND V. Bhaskaran Nambiar , J

(A) Banking Regulation Act (10 of 1949) , S.45(1), S.45(3), S.5(b), S.6— Moratorium under S.45(1) - Bank appointed as authorised dealer in foreign exchange cannot act as such dealer during moratorium - Holder of foreign exchange account cannot withdraw money from such account - Foreign Exchange Regulation Act (46 of 1973) , S.6— Since moratorium ordered by the Central Government under S.45(1) of the Banking Regulation Act was "in respect of a banking company" and not confined only to banking business the bank in question, which was also appointed an authorised dealer in foreign exchange would not be able to transact business as such authorised dealer. Consequently, a person having foreign exchange account would not be able to withdraw moneys from the bank while an order of moratorium was in force beyond what was permitted under the order. S.45(3) of the Banking Regulation Act forbids the bank concerned from making any payment to any depositor or discharge any liabilities to any creditor except as directed by the Central Government. The fact that Foreign Exchange Regulation Act requires further authorisation to transact business in foreign exchange would not affect the content of power of moratorium.(Para 12 13 14) (B) Constitu....