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Informist, Wednesday, Dec. 4, 2024

NEW DELHI – The Delhi High Court has dismissed Lakshmi Vilas Bank's plea to reject Religare Finvest Ltd.'s recovery suit against the bank on account of non-joinder of necessary parties. Religare Finvest, a subsidiary of Religare Enterprises Ltd., had sought recovery of INR 7.9 billion, along with interest, from Lakshmi Vilas Bank, which now stands merged with DBS Bank.

The high court said both Religare group companies RHC Holding Pvt. Ltd. and Ranchem Pvt. Ltd. have already been impleaded as defendants along with, Malvinder Mohan Singh and Shivinder Mohan Singh, former Religare Enterprises promoters. "The core ground on which the rejection of the plaint has been sought was non-impleadment of necessary parties. However, this aspect already stands addressed vide order dated Dec. 15, 2023, when the parties stand impleaded," said the court.

Lakshmi Vilas Bank said that it had sanctioned and disbursed various facilities from time to time to RHC Holding and Ranchem, which were secured by various fixed deposits created by Religare Finvest. The bank said that in the recovery suit Religare Finvest has attempted to distance itself from the sanction of loan and creation of securities in favour of the bank. In fact, contrary to the agreement between the bank and Religare group companies, Religare Finvest has completely denied having created any security and made the statements and averments as if RHC Holding and Ranchem have no relation with the present recovery suit.  End

Reported by Surya Tripathi

Edited by Ashish Shirke

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