Petition in HC wants closure of StanChart's India operations

The Delhi High Court has issued notice to
Standard Chartered Bank on a petition,
which alleged non-payment Rs 1.5 lakh by
the foreign bank as directed by the DRT and
sought winding up of the lender's India operations.

A single member bench of Justice S K Mishra has directed
the foreign bank to file its reply within four weeks on a
petition filed by three persons in a property case.

The petition followed StanChart's alleged failure to pay
a cost of Rs 1.5 lakh to the persons as per the judgement
of the Debt Recovery Tribunal (DRT) in New Delhi.

The DRT in its ruling on May 15 quashed two notices of the
Bank on taking possession of the two properties located in
Nizamuddin West in New Delhi under the Securitisation
and Reconstruction of Financial Assets and Enforcement
of Security Interest Act. The DRT also asked the bank to
pay Rs 1.5 lakh along with 18 per cent interest to the persons.

However, according to the petition filed by advocate
Gajendra Giri, the bank neither paid the amount nor
returned the property papers of his client D S Sawhney's home.

"Standard Chartered Bank has illegally withheld property
documents despite the fact that nothing is due against the
said property and thus bank has cheated them and is
illegally withholding the documents nor it paid the cost
amount as directed by the DRT," contended the petitioner.

Giri contended that as per sections 45 A, 45 B of the Banking
Regulation Act and the Companies Act, if a banking company
fails to pay debt or refuses to pay any lawful demand
"within two working days" then the High Court has
the power to order winding up of the bank.