New Delhi: The Supreme Court will hear on April 20 an application by Margadarsi Financiers seeking an interim stay of all further proceedings pursuant to the two reports submitted by the N. Rangachary Committee and a direction not to invoke the provisions of the Andhra Pradesh Protection of Depositors of Financial Establishment (APPDFE) Act.

A Bench, comprising Chief Justice K.G. Balakrishnan and Justice R.V. Raveendran, fixed the date after hearing senior counsel Arun Jaitley, who pleaded for early listing of the application. Counsel for the State Government opposed the application, saying the petitioner could move the High Court as the matter was pending there. The application said on February 23, the apex court issued notice to the State Government. Subsequently, the Government, by a letter dated March 5, called for the remarks of the applicant and to show cause as to why action under the provisions of the APPDFE Act should not be initiated.

The applicant said it submitted a reply on March 14, contending that the "letter addressed by the first respondent [the State Government] does not constitute a notice in terms of the High Court order dated January 25." The reports of the Rangachary Committee were a gross mis-statement of facts and a closer scrutiny would expose the hollowness of the various spectacular claims thereof.

The applicant submitted that all arrangements had been made to meet the repayment obligations to the depositors, and that any action under the Act would be prejudicial. On March 28, the State Government sent another letter calling upon the applicant to furnish particulars regarding the total amount of deposits collected, details of investments made, details of properties or assets procured and particulars relating to the equity sale and term loan, etc.

The applicant alleged that crude attempts were being made to invoke the provisions of the APPDFE Act under the guise of safeguarding the interests of depositors. Hence, the present application.

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