The Bombay High Court on 26th November denied granting an interim stay to the merger of Lakshmi Vilas Bank with DBS Bank India.
Justice Nitin Jamdar and Justice Milind Jadhav heard the petition filed by a group of promoters of LVB and shareholder Indiabulls Housing Finance Ltd questioning the incorporation of the bank with DBS Bank India.
The division bench has adjourned the hearing to December 14.
The respondents to the petition comprise the Reserve Bank of India, LVB, and DBS Bank India.
The Bombay High Court heard the appeal just a day before the scheme of amalgamation of LVB and DBS Bank India will come into effect.
All the branches of LVB will now operate as those of DBS Bank India.
The amalgamation scheme was approved by the Union Cabinet on 25 November.
Under the scheme, the complete amount of the paid-up share capital and reserves and surplus, also including the balances in the share and securities premium account of the transferor bank, shall be written off.
Senior advocate Ravi Kadam, for the RBI, underscored the importance of continuation of the financial system, depositor interest, and economy.