Dismissed

Sri. v.K.K.Charities v. State Bank of India

Madras HC26 Mar 2024WP/8177/2024

Case brief

AI extract

What is this about?

The petitioner trust challenged a bank order freezing accounts due to internal factional disputes pending in civil courts. The court held that since civil courts were seized of the disputes, intervention by the writ court was inappropriate. Additionally, the absence of private parties as respondents led the court to dismiss the petition while permitting withdrawal of cheques for statutory payments

What did the court decide?

Petition dismissed; petitioner permitted to withdraw specific cheques for property and electricity payments subject to fund availability.

Sri. v.K.K.Charities Vs State Bank of India — Contract and Commercial Disputes | Madras HC (2024)

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2024:MHC:1526

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W.P.No.8177 of 2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 26.03.2024

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CORAM

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THE HONOURABLE DR.JUSTICE ANITA SUMANTH

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W.P.No.8177 of 2024

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& WMP.Nos.9124, 9125 & 9209 of 2024

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Sri.V.K.K.Charities, Rep. by its Managing Trustee Mrs. Kavitha Renganathan No.34/88, Landon's Road, Kilpauk, Chennai – 600 010. .... Petitioner

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State Bank of India, Rep by its Branch Manager, Pallavaram Branch, Patanjali Plaza, 1^st Floor, Old Trunk Road, Chennai 600 043 .... Respondent

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Prayer: Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus calling for the records of the respondent in letter PVM/2023-24/dated 16.03.2024 and quash the same and consequently direct the respondent to de-freeze the bank accounts of the petitioner trust bearing current account nos.10260845163, 32569862415, 41691777530 and 37296675971 maintained in the respondent bank within a time frame to be fixed by this Hon'ble Court.

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For Petitioner : Mr.Arjun.M For Respondent : Mr.M.L.Ganesh

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https://www.mhc.tn.gov.in/judis

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W.P.No.8177 of 2024

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Standing counsel

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O R D E R

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The petitioner challenges order dated 16.03.2024 passed by the

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State Bank of India, Pallavaram Branch, Chennai arrayed as sole respondent, wherein, the bank has frozen the account of the petitioner Trust pursuant to a letter received from one V.K.K.Charities bringing to the fore the fact that there are warring factions inter se the trust itself.

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On account of the apparent discord among the trustees, the bank has frozen the accounts, which is the right course of action to have been undertaken.

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3.Admittedly, there are two suits that are pending inter se the warring factions of the trust. The first is in O.S.Diary.No.3390 of 2019 on the file of Principal District Court, Madurai along with I.A.No.1891 of 2019 seeking leave under Section 92 of the Code of Civil Procedure. The second suit is O.S.No.1129 of 2024 on the file of the City Civil Court, Chennai.

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The City Civil Court has passed an order in I.A.No.3 of 2024 keeping in abeyance the removal of V.K.K.Sekaran as Chairman of the Trust. Since the Civil Courts are seized of the disputes between the parties, it would not be appropriate for this Court to intervene.

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5.Moreover, the petitioner has not arrayed any of the private 2/4

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https://www.mhc.tn.gov.in/judis

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W.P.No.8177 of 2024

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parties as respondents in this writ petition and even for that reason, I am not inclined to intervene.

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6.The petitioner states that cheques are to be issued towards statutory payments and in this regard has filed Memo dated 25.03.2024 as below:

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A. Property Tax

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i) Cheque bearing No.007612 dated 20.03.2024 drawn on State

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Bank of India, Pallavaram Branch for a sum of Rs.2,07,636/-, that has been issued.

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ii) Cheque bearing No.007615 dated 26.03.2024 drawn on State Bank of India, Pallavaram Branch for a sum of Rs.6,22,908/-, yet to be presented.

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B. Electricity payment

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Cheque bearing No.007614 dated 26.03.2024 drawn on State Bank

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of India, Pallavaram Branch for a sum of Rs.59,569/-, yet to be presented.

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R2 will permit the aforesaid cheques alone to be presented and clear the same subject to availability of funds in the bank account. This

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Dr.ANITA SUMANTH,J.

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is solely a measure to ensure that statutory payments are effected in time. https://www.mhc.tn.gov.in/judis 3/4

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W.P.No.8177 of 2024

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The petitioner is at liberty permitted to seek remedy as against the impugned communication dated 16.03.2024 before the appropriate fora.

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This Writ Petition and connected Miscellaneous Petitions are

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dismissed, though with liberty as above. No costs.

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26.03.2024

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Index:Yes/No Speaking order Neutral Citation:Yes vs/sl To

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State Bank of India, Rep by its Branch Manager, Pallavaram Branch, Patanjali Plaza, 1^st Floor, Old Trunk Road, Chennai 600 043

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W.P.No.8177 of 2024 & WMP.Nos.9124, 9125 & 9209 of 2024

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https://www.mhc.tn.gov.in/judis

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Sri. v.K.K.Charities v. State Bank of India

Case brief

What is this about?

What did the court decide?

Sri. v.K.K.Charities v. State Bank of India

Case brief

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What did the court decide?

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