HDFC Bank – Amalgamation – Transfer of commercial suit to DRT
judgment dated 11.8.2025 of the Bombay High Court, Aurangabad Bench, in Writ Petition No.7008 of 2024 of M/s. Ashwini Trading Co. Vs. Housing Bank Limited
After considering the RDB Act of 1993 and purposive interpretation, the express bar under the said Act was applied and the order of the Commercial Court transferring the suit to the DRT was upheld.
Transfer of Suit to the DRT after amalgamation of non-banking entity with a bank
In 2008, HDFC filed suit for recovery against the petitioner and the respondent nos.2 to 12 in respect of two separate loan accounts.
In 2019, the said suit was registered as Commercial Suit.
In the meanwhile, in 2023 there was amalgamation of HDFC Limited with the HDFC Bank Limited, all assets and liabilities were transferred to the HDFC Bank. The name of the HDFC Bank was impleaded as plaintiff in the suit.
In that context, the application of the the HDFC Bank for transfer of commercial suit to the DRT in view of Sections 17 and 18 of RDB Act, 1993, was allowed.
HELD that after amalgamation the original non-banking entity plaintiff ceases to exist and therefore, the debt & suit become part of the Bank. The non-banking entity has lost its existence on the amalgamation with the Bank. A monetary claim which is assigned to a Bank will also be a debt within the meaning of Section 2(g) of the RDB Act.
HELD that section 31 cannot be interpreted in a vacuum and has to be read with sections 17 and 18 of the RBD Act.
