Case Law Details
In this case Madras high court ruled in favour of Axis Bank Ltd in a dispute between it and Coimbatore-based Rajshree Sugars and Chemicals Ltd. The high court has held that the derivative contract is not a wagering contract, which means it is not illegal. It has also been held that amount due to the bank (Rs46-50 crore) is a debt as defined under the Debt Recovery Tribunal Act and hence the bank can approach the Debt Recovery Tribunal (DRT).
Court held that the contract entered into between the said company and the bank is not a void or voidable contract nor was it considered to involve any kind of fraud in the said derivative contracts.
HIGH COURT OF JUDICATURE AT MADRAS
DATED : 14-10-2008
CORAM
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