According to the plea, the circular allows banks to declare an account as fraud without giving any prior notice or communication to the account holder against the principles of natural justice.
Their lawyers told the court that several similar petitions against the circular have been filed since 2019 and the petitioners in those matters have been protected by the high court.
In view of the orders passed earlier by the high court in similar matters, Justice Jalan directed State Bank of India to “maintain status quo till next date of hearing” with regard to the accounts of the three companies.
The court further said that the respondents, including RBI and the three companies, were at liberty to file their replies to the petition by January 11 and listed the matter for hearing on January 13.
The court further said that SBI and RBI were at liberty to take any steps in the nature of an investigation or filing of complaint proceedings against the erstwhile directors and the three companies independent of the impugned action of declaring the accounts of the three companies as fraud accounts.