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Informist, Wednesday, Feb. 12, 2025

 

NEW DELHI – The Supreme Court on Wednesday dismissed DBS Bank Ltd.'s petition seeking rejection of 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.

 

Rejecting the plea of DBS Bank in December, the Delhi High Court had said that 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," the high court had said.

 

The apex court bench of Justice Surya Kant and Justice N.K. Singh on Wednesday upheld the high court's order. 

 

Lakshmi Vilas Bank had said that from time to time, it had sanctioned and disbursed various facilities 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

 

At 1156 IST, shares of Religare Enterprises Ltd were down 2.7% at INR 234.24 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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