Disposed¶41

D.Prem v. Indian Overseas Bank

Madras HC2 Apr 2026WP/29170/2022

Case brief

AI extract

What is this about?

Bank Realization Certificate (BRC); Indian Overseas Bank; writ of mandamus; Article 226 Constitution of India; FEMA regulations compliance; export-oriented concessions/certificates; PGC Corporation Limited under liquidation; Official Liquidator; foreign remittance; export proceeds realization; New Jersy Superior Court Bergen County; Infinite Vision LLC voluntary bankruptcy petition; US Customs auction; Madras High Court; Krishnan Ramasamy J.; WP No. 29170 of 2022; WMP.No.28455 of 2022.

What did the court decide?

Writ petition disposed of with a direction to the petitioner to submit all documents sought by the 1st respondent within four weeks; on receipt of the same, the 1st respondent (Indian Overseas Bank) to issue the Bank Realization Certificate immediately without any delay; no costs; connected Miscellaneous Petition (WMP.No.28455 of 2022) closed.

D.Prem Vs Indian Overseas Bank — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the 1st respondent Bank (Indian Overseas Bank) is obliged to issue the Bank Realization Certificate to the petitioner for the schedule-mentioned foreign remittances received on behalf of PGC Corporation Limited, and upon what conditions.

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Court's answer

The 1st respondent Bank is supposed to issue the Bank Realization Certificate to the petitioner on receipt of remittance from the foreign buyer; the certificate is very much required for availing export-oriented concessions/certificates and for showing compliance of FEMA regulations.

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Ratio / Principle

The petitioner is directed to submit all the documents sought for by the 1st respondent within a period of four weeks from the date of receipt of a copy of the order, and on receipt of the same the 1st respondent shall issue the Bank Realization Certificate to the petitioner immediately without any delay.

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Detailed headnote1 paragraphs

Madras High Court (Krishnan Ramasamy, J.; 02-04-2026), WP No. 29170 of 2022 — D. Prem, Ex-Chairman and Managing Director of PGC Corporation Limited (a company under liquidation), filed a writ petition under Article 226 seeking a Writ of Mandamus directing Indian Overseas Bank to issue a Bank Realization Certificate (BRC) for foreign remittances received on behalf of the company, which had exported textile goods worth USD 5,579,955/- to the United States and Europe. After default by the US buyer, proceedings were initiated in the New Jersey Superior Court, Bergen County, and the buyer, Infinite Vision LLC, went into voluntary bankruptcy; goods not cleared from US Customs were sold in auction, leaving export proceeds unrealized. The Bank resisted, contending the documents it sought had not been produced; the petitioner undertook to resubmit them. Held, the Bank is supposed to issue the BRC to the petitioner on receipt of remittance from the foreign buyer, the certificate being very much required for availing export-oriented concessions/certificates and for showing compliance of FEMA regulations. The petitioner was directed to submit the documents sought by the Bank within four weeks, and on receipt of the same the Bank is to issue the BRC immediately without any delay. Writ petition disposed of, no costs; connected Miscellaneous Petition closed.

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WP No. 29170 of 2022

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 02-04-2026

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CORAM

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THE HON'BLE MR JUSTICE KRISHNAN RAMASAMY

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WP No. 29170 of 2022 and WMP.No.28455 of 2022

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D.Prem

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S/o. S.Duraiswamy, Ex Chairman and Managing Director of PGC Corporation Limited, Prem Gardens, 5, Rajaji Nagar, P.N.Road, Tirupur.

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..Petitioner

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Indian Overseas Bank Represented by its Assistant General Manager, Kumaran Road, Tirupur-641 601.

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Official liquidator of PGC Textile corporation Office of the Official liquidator Madras High Court, UTI Building, 2nd Floor, Rajaji Salai, Beach Road, George Town, Chennai - 600001.

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Directorate of Enforcement, Southern Regional Office, Shasthri Bhavan, III Block, B Wing, 26, Haddows Road, Chennai - 600 006.

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..Respondents

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Writ Petition filed under Article 226 of Constitution of India seeking for issuance of Writ of Mandamus directing the 1st Respondent to issue Bank realization certificate for the schedule mentioned foreign remittance received on behalf of PGC Corporation Limited.

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Page1 of 7

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

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WP No. 29170 of 2022

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For Petitioner: Mr.Akhil R.Bhansali For Respondents: Mr. V. Kathirvelu (R1) Standing Counsel No appearance (R2) Mr.A.Kumaraguru (R3) Special Government Pleader

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ORDER

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This Writ Petition has been filed seeking a direction to the 1st Respondent to issue Bank realization certificate for the schedule mentioned foreign remittance received on behalf of PGC Corporation Limited.

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The learned counsel appearing for the petitioner would submit that the petitioner Company viz., PGC Corporation Limited, which is under liquidation has exported textile goods to United States and Europe through various consignments to the tune of USD 5,579,955/- as stated in the paragraph 2 of the affidavit filed in support of this petition and until April 2013, the Company received some payments as stated in paragraph 3 of the affidavit. Further, he would submit that there was a default in payment by the buyer in the United States, as a result of which proceedings were initiated in the New Jersy Superior Court, Bergen County. However, pursuant there to the Buyer i.e., Infinite Vision LLC initiated voluntary bankruptcy petition. some of the goods which were exported were not cleared by the buyer from the US Customs and therefore the same was sold in auction, due to which the petitioner suffered huge loss and was not able to realize the entire export proceeds.

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__________ Page2 of 7

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

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WP No. 29170 of 2022

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2.1.Further, he would submit that despite several requests made, the 1^st respondent is refusing to issue the Bank Realization Certificate even for the amounts which were realized by the 1^st respondent, as it is necessary for the purpose of showing compliance to the FEMA regulations and also for availing export-oriented concessions/certificates issued by the Government of India. Therefore, the petitioner has filed this writ petition seeking for the aforesaid relief.

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The learned standing counsel appearing for 1^st respondent would submit that since the documents sought for by the Bank was not produced by the petitioner, they are not in a position to issue the Bank Realization Certificate.

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In reply, the learned counsel appearing for the petitioner would submit that they have already produced all the necessary documents before the 1^st respondent, despite the same, the 1^st respondent refused to issue Bank Realization Certificate to them. However, he would fairly submit that the petitioner is ready and willing to resubmit the documents sought for by the 1^st respondent.

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__________ Page3 of 7

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

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WP No. 29170 of 2022

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The learned Standing Counsel appearing for the 1^st respondent would

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submit that the 1^st respondent will issue the Bank Realisation Certificate to the

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petitioner after production of the documents sought for by the 1^st respondent.

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Heard both sides. Perused the records.

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7. Considering the submissions made by the learned counsel appearing on either side and on a perusal of the documents placed before this Court, it is clear that the petitioner Company have exported goods to United States and Europe as stated in paragraph 2 of the affidavit filed in support of this petition and received certain payments as stated in paragraph 3 of the affidavit. Therefore, the 1^st respondent is supposed to issue the Bank Realization Certificate to the Petitioner, on receipt of remittance from the foreign buyer. As rightly contended by the learned counsel for the petitioner that Bank Realization Certificate is very much required for them for the purpose of availing export-oriented concessions/certificates and also for showing compliance of FEMA regulations.

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Taking into consideration of all these aspects, this Court directs the petitioner to submit all the documents sought for by the 1^st respondent, within a period of four weeks from the date of receipt of a copy of this order and on receipt of the same, the 1^st respondent shall issue Bank Realization Certificate to the petitioner, immediately without any delay.

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__________ Page4 of 7

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

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WP No. 29170 of 2022

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This Writ Petition is disposed of accordingly. No costs. Consequently,

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connected Miscellaneous Petition is closed.

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02-04-2026

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Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No arr

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__________ Page5 of 7

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

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WP No. 29170 of 2022

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The Indian Overseas Bank Represented by its Assistant General Manager, Kumaran Road, Tirupur-641 601.

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Official liquidator of PGC Textile corporation Office of the Official liquidator Madras High Court, UTI Building, 2nd Floor, Rajaji Salai, Beach Road, George Town, Chennai - 600001.

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