JOIN US The High Court on Wednesday dismissed a petition challenging the single judge order to merge the Amanath Co-operative Bank with Canara Bank after the petitioners withdrew it.
The petitioners, former Union Minister and senior Congress leader C K Jaffer Sharief and others, had moved the High Court challenging the order dated July 31, 2014 by Justice Ram Mohan Reddy merging the Amanath Cooperative Bank with Canara Bank.
Sharief, who is also a shareholder of Amanath Bank, had contended that the bank could scrape through the crisis as it had already recovered Rs 30 crore from borrowers and another Rs 30 crore due from defaulters would be met by raising money from the shareholders.
Stating that the bank can be run without any hurdles, he pointed out to the property owned by the bank at N S Palya, which is estimated to fetch Rs 205 crore, was sufficient to bail out the bank from the crisis.
When the matter came up for hearing before the division bench comprising Chief Justice D H Waghela and Justice R B Budihal, the petitioners sought to withdraw the petition. The bench dismissed the petition as withdrawn.
On July 31, 2014, Justice Reddy, in his directions, had allowed Canara Bank to take over assets, and liability of Amanath Cooperative Bank. He had also directed to begin the process of merger within 30 days from the date of issue of notification.