1 WP 4216.09.sxw srk IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 4216 OF 2009 M/s M.J. Hardware & Ors. ... Petitioners Vs Reserve Bank of India & Anr. ... Respondents Mr. Tejpal Ingale for the petitioner. Mr.Sakhardande i/b M/s.Udwadia & Udeshi for the respondent No.1. Mr. V.B. Rajure for Respondent No.2. CORAM: S.B. MHASE & R.M. SAVANT, JJ. DATED : 26TH AUGUST, 2009. P.C.: 1 Heard. The directions in the order under section 35-A of Banking Regulation Act, has been issued by the Reserve Bank of India in respect of the respondent No.2-Bank. Petitioners are the depositors with the respondent No.2, they have taken a loan; in 2 WP 4216.09.sxw respect of which they have defaulted. After the order has been issued under section 35-A of the Banking Regulation Act, they have made a representation to the Reserve Bank of India that their fixed deposit amounts be adjusted against the loan. The said request has been refused by the respondent No.1-Reserve Bank of India. What is important to be noted is that after the orders under the Banking Regulation Act are passed the valuation of the assets will have to be carried out and further a decision allowing the bank to carry on business or to be merged with any other bank will have to be taken. If the merger takes place on the basis of the valuation of the deposits it would be on the basis of the said valuation that the amounts will be returned to the depositors. Therefore, unless and until the valuation of the deposits is carried out, the adjustment of the loan cannot be effected. 2 The learned counsel for the Reserve Bank makes a statement that after the valuation of the deposits, adjustment of the amounts will be given to the depositors and the said adjustment cannot be given on a fixed valuation i.e. the amount on maturity as sought by 3 WP 4216.09.sxw the petitioners. The statement made on behalf of the Reserve Bank is accepted. 3 On the basis of the said statement the above Writ Petition is disposed of. (R.M. SAVANT, J.) (S.B. MHASE, J.)