Bombay HC Directs IndusInd Bank To Release ₹65.68 Crore FD To Lilavati Trust
· Free Press Journal
Mumbai, April 20: The Bombay High Court has ordered IndusInd Bank to release Rs 65.68 crore in fixed deposits to the trust running Lilavati Hospital, ending a deadlock over the funds.
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Court directs release of funds
A bench of Justices M S Karnik and S M Modak, on April 16, directed the bank to encash the matured deposit and transfer the proceeds to the trust’s account at Union Bank of India.
Dispute over release of deposit
The legal battle began after the fixed deposit matured in June 2024. IndusInd Bank had withheld the funds, insisting on a formal order from the Joint Charity Commissioner.
The bank justified this requirement by pointing to ongoing litigation among the trustees, arguing that releasing the money without official clearance could expose the institution to future legal claims or liability.
Trust provides undertaking to court
The trust’s advocate countered that such demands were unnecessary and interfered with the trustees' rights established under the original trust deed.
The trust committed to filing a comprehensive undertaking to mitigate the bank's apprehensions, confirming that the account in which the amount is to be deposited belongs solely to the trust and that Charu Mehta, a permanent trustee for life, is fully authorised to oversee the transaction.
Conditions and indemnity assurances
The court noted that the undertaking also includes a guarantee that the Rs 65.68 crore, along with accrued interest, will be used exclusively for the hospital's lawful purposes or reinvested according to trust protocols. The trust has also agreed to indemnify IndusInd Bank against any future claims.
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Following these assurances, the bench disposed of the plea, granting the bank three days to complete the transfer once the undertaking is filed.
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