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Mumbai, Sept. 8 A district munsif court in Ludhiana has ruled that a forex derivatives agreement between Axis Bank and Nahar Industries stands, and also rejected Nahar’s petition for a permanent injunction for repudiation of the agreement.

The court also ruled that the jurisdiction of the case is Mumbai, as the agreement is governed by International Swap and Derivatives Association, said an official from Axis Bank.

The official said that Nahar Industries had approached the court saying that forex derivatives agreement between the bank and the company should be repudiated as a wagering contract, and the bank should be prevented from executing the contract when the payment is due. However, this plea was rejected by the Ludhiana court.

Following this judgment, the bank now has the option to approach the Debt Recovery Tribunal in Mumbai to recover its dues from the company, the official said.

The matter is not yet disposed of; the company still has the option to approach the sessions court or the district court, the official added.

Axis Bank is also involved in a legal battle with Rajshree Sugars and Chemicals over a forex derivatives contract with the company. This case is in the Madras High Court.

More Stories on : Private Banks | Courts/Legal Issues | Forex | Derivatives Markets

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