Bank Can Withhold No Due Certificate Until All Loan Charges Are Paid: Calcutta HC

Maan Steel and Power Limited and Anr. Vs Indian Bank (Calcutta High Court) The petitioners approached the Calcutta High Court challenging the respondent bank’s refusal to release Fixed Deposit Receipts (FDRs), issue a ‘No Due Certificate’, and its demand for ₹42,46,557.83 towards alleged unrealised charges after the petitioner company’s credit facilities were taken over by another bank. The petitioner had originally obtained credit facilities of ₹94 crore from a consortium of lenders, including the respondent bank. Upon takeover of the respondent’s exposure by another bank after ...