Advocates Permitted To Participate In Proceedings Before Banking Ombudsman Under 2006 RBI Scheme?: Madras HC To Consider [Read Order]

The contention of the petitioner on the basis of certain information received was that there is no legal bar in the appearance of the advocates otherwise and secondly, the respondents are discriminating so far as the individual complainants are concerned by allowing Law Officers of the Bank to appear in such proceedings, whereas, at the same time, denying the individuals of the assistance of advocates.

The bench had called upon counsel for the respondents to come forward explaining the nature of the functions of the Ombudsman and the powers exercised by him in order to ascertain as to whether the nature of the proceedings do require any such legal assistance and can be barred or not.

"The Reserve Bank of India through the Ombudsman filed a counter affidavit annexing therewith 2006 Scheme, where Clause 7 entails the power and jurisdiction of the Ombudsman, Clause 10 prescribes the procedure for calling for information and Clause 11 or thereof indicates the exercise of jurisdiction by the Ombudsman to be not bound by any Rules of evidence and allow him to follow such procedure as may be considered just and proper, where providing an opportunity to the complainant along with documentary evidence has been made permissible within a time frame. The Award is to be made by the Banking Ombudsman with powers under Clause 12 and also empowers him to reject the complaint under Clause 13", recorded the bench.

The bench further found that the appeal before the appellate authority is provided under Clause 14. In the background aforesaid, it was the contention of the counsel for the petitioner that a Single Judge of the court in a 2002 decision has held that the Ombudsman under the Scheme performs a quasi-judicial function and therefore, in view of the said pronouncement, it is evident that the Ombudsman proceeds like an adjudicatory forum and consequently, the legal assistance of an advocate should not be denied more so keeping in view the fact that law officers of the bank are allowed to attend such proceedings.

"Having considered the submissions raised and having perused the Scheme, we find that the issue requires some more clarification and consequently, the respondents may file an appropriate response in order to explain the status, the jurisdiction and the powers exercisable by the Ombudsman in order to further proceed in the matter", required the division bench.

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