1 WP No.2344 OF 2010 mmj IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.2344 OF 2010 Rama Krishnan ..Petitioner Vs. The Reserve Bank of India & Ors. ..Respondents Mr. M.I.Sethna Sr. Counsel a/w Mr. A.M.Sethna Mr. L.S.Shetty and Me. E.H. Newme i/b L.S. Shetty and Associate for the Petitioner Mr. Shyam Mehta a/w Mr. Mihir Mody and Mr. Rajesh Talekar i/b K. Ashar & Co. for the Respondent No.1 Mr. Hiren Mehta for the Respondent Nos.2 & 3 Mrs. S.V. Bharucha for the Respondent No.4 CORAM :- V.C.DAGA & R.M.SAVANT,JJ. DATE :- 5th OCTOBER, 2010 P.C. 1 Heard the Learned Counsel for the Parties 2 Perused Petition. 3 During the course of the hearing a letter dated 4-10-2010 addressed to the Senior Panel Counsel, appearing for Union of India, is placed on record. In the last paragraph of this letter, it is stated that the RBI shall be free to proceed with the compounding proceedings, since no FEMA investigation is pending against the Petitioner in relation to the contravention of the FEMA provisions alleged to have been committed by the Petitioner. 2 WP No.2344 OF 2010 4 In the above view of the matter, Mr. Sethna, Learned Senior Counsel appearing for the Petitioner submits that within two weeks from today Petitioner will approach the RBI with a prayer for compounding. In the event of such prayer being made, the Learned Counsel for the RBI makes a statement that the RBI shall decide the same with expeditious dispatch at any rate within 8 weeks from the date of receipt of the prayer seeking compounding. 5 In the mean while, the Respondents No.2 and 3 are directed to release 50% of the amounts held by them in Fixed Deposit after calculating upto date interest earned on the Fixed Deposit. The balance amount to be refunded to the Petitioner within two weeks from the date of the decision of the compounding application by the RBI, subtracting the amount of compounding fee and/or fine that may be determined by the RBI, which shall be paid to the RBI by the Respondent Nos.2 and 3. Failure on the part of the Respondent Nos.2 and 3 to pay the balance amount within stipulated period, the Petitioner shall be entitle to interest @ 12% over the unpaid amount till payment in full and final. So far as the claim of interest for detention of the amount by the Respondent Nos.2 & 3 is concerned, Petitioner is left to his own remedy that may be available to him in law. 6 The Petition is accordingly disposed of in terms of the said order with no order as to costs. (R.M.SAVANT,J.) (V.C.DAGA,J.)