Bombay High Court Dismisses RBI Bond Transfer Request
MUMBAI: In a significant ruling, the Bombay High Court has declined to direct the transfer of Reserve Bank of India (RBI) bonds to the mother and wife of a man who has renounced worldly life and become a Jain sadhu. The court emphasized that, under Article 226, it will not intervene in disputed claims between parties and advised them to pursue civil remedies through appropriate channels.
Case Background
The petitioners, a 77-year-old mother and her 48-year-old wife, argued that the man, referred to as M, was the karta of a Hindu Undivided Family (HUF). They contended that M’s renunciation equated to “civil death,” implying that all his properties would pass on to his legal heirs. M holds bonds valued at approximately Rs 56 lakh, maturing on September 18, 2026. However, according to RBI guidelines, these bonds cannot be transferred unless there is a natural death.
Before his renunciation, M sought guidance from HDFC Bank regarding the procedure for transferring the RBI bonds to his heirs. The bank, however, did not recognize sanyas as civil death and refused to process the transfer. M’s family subsequently approached the bank after his renunciation, but their request was denied on grounds of insufficient evidence.
Judicial Insights
In their February 21 ruling, Justices Revati Mohite Dere and Neela Gokhale sided with HDFC’s legal counsel, pointing out that the question of whether M and his children have truly taken sanyas is a complex factual matter. They referenced a precedent set by the Delhi High Court, indicating that mere declaration or outward appearance of being a sanyasi does not constitute genuine renunciation without the necessary ceremonies.
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