RELIGARE FINVEST LIMITED Vs. LAKSHMI VILAS BANK LIMITED

JUDGEMENT

(1.) The present application has been filed under Order VI Rule 17 r/w Order I Rule 10 of the Code of Civil Procedure, 1908 ('CPC') seeking the following prayers:

(2.) The present suit has been filed by the plaintiff inter alia seeking that liquidation of four of the plaintiff's lien-free fixed deposits (FDs) by the defendant be declared to be illegal and praying for recovery of the said amount.

(3.) Briefly stated, the case of the plaintiff as stated in the plaint is that the plaintiff, at no point of time, had created any encumbrance by way of charge, lien, pledge or otherwise on the FDs opened with the defendant bank. It is averred in the plaint that several communications regarding the same were issued to the defendant and the defendant never disputed or denied the unencumbered nature of the plaintiff's FDs. It is averred in the plaint that the plaintiff was not a party to the alleged third party's loans and borrowings claimed to have been sanctioned by the defendant. It is further averred that liquidation of the plaintiff's FDs for closure of loans availed of by the third parties/borrowers is illegal and void.