The Bombay High Court on Friday granted interim stay on orders passed by the Central Information Commission (CIC) directing the Reserve Bank of India to submit a list of wilful loan defaulters.
A division bench of Justices B P Dharmadhikari and S V Kotwal also stayed a show cause notice issued on November 2 this year by the CIC to former RBI governor Urjit Patel for non-disclosure of the information sought and for defiance of its orders.
The RBI had petitioned the high court last month challenging orders passed by the CIC directing it to disclose the bad debt details of defaulters worth more than Rs 1,000 crore at the beginning and those worth Rs 500 crore or less at a later stage.
On November 2 this year, the CIC had issued a show cause notice to Patel for "dishonouring" a Supreme Court judgement on disclosure of wilful defaulters' list.
The notice was issued after the RBI failed to give the list.
The CIC had in its notice said it considers the RBI governor as deemed Public Information Officer (PIO) responsible for non-disclosure and defiance of CIC orders.
The commission asked Patel to explain why the maximum penalty should not be imposed on him.
On November 16, the CIC once again asked the RBI to submit the list and also the previous RBI Governor Raghuram Rajan's letter on bad loans.
The CIC was hearing the plea of one Sandeep Singh who had sought details of bank loan defaulters.
Senior counsel Venkatesh Dhond, appearing for RBI, told the high court Friday that the CIC order has been passed without giving a hearing to RBI.
"Information of such nature if disclosed could harm the national economy. In such situation, the CIC order and the impugned notice issued on November 2 are ex facie illegal, arbitrary and unsustainable," RBI said in its petition.
The bench, after hearing brief arguments in the case, issued a notice to CIC and posted the matter for further hearing on April 10.
"Ad-interim relief sought in the petition for staying the operation, effect, finishing and other conclusions of the respondent (CIC) is granted," the court said.