Bombay and Madras high courts adjourn LVB-DBS merger cases – ET BFSI


The Bombay High Court has adjourned the case filed by shareholders and bondholders of Lakshmi Vilas Bank (LVB) for eight weeks since the Supreme Court is expected to hear the petition filed Reserve Bank of India (RBI) to consolidate all the matters on January 12. On Tuesday, the division bench of Justice Nitin Jamdar and Justice Milind Jadhav heard lawyers for all the parties and have adjourned the case for eight weeks.

The shareholders of LVB, including Kare Electronics and Development, Pranava Electronics Private Ltd and KR Pradeep had approached the Bombay High Court to challenge the scheme of amalgamation with DBS Bank India. In a separate petition, Indiabulls Housing Finance has also challenged the same scheme the Bombay High Court.

The RBI has approached the Supreme Court to seek its intervention to consolidate all the cases and to be heard at one High Court. Apart from the Bombay High Court, the scheme of amalgamation is also challenged by various stakeholders in other four courts including Madras High Court, Karnataka High Court and the Delhi High Court. The Madras High Court also in a separate hearing adjourned all matters related to LVB-DBS merger by four weeks.

Last week, on Friday, the Apex Court sought response from various shareholders and others on why all the petitions related to the merger of LVB with DBS Bank India, pending before different high courts, should not be transferred to the Bombay High Court.

The RBI has argued in the Supreme Court that, in the interest of justice it is important to consolidate all the matters and to be decided by one court so that there are no contradictory or inconsistent judgements passed by different High Courts on the same issue.

Subsequently, the Supreme Court has directed all the parties to file their response before the next date of hearing.

In the case, law firms Trilegal and Parinam Law Associates are representing shareholders and bondholders respectively in the Bombay High Court. While RBI and DBS Bank India are being represented by AZB & Partners and Shardul Amarchand Mangaldas & Co respectively.

Source link

Leave a Reply