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2011 (3) TMI 1475 - HC - Companies LawSurrender of banking license – right to claim outstanding amount from customer - credit facilities from respondent 1. The petitioners did not clear the outstanding dues - respondent 1 had surrendered its banking licence in India and had stopped its banking operation in India. The petitioners therefore filed a miscellaneous application and called upon respondent 1 to produce the banking licence. Respondent 1 in its reply admitted that it had surrendered its banking licence. The petitioners, therefore, filed a miscellaneous application seeking dismissal of the original application on the ground that respondent 1 was no longer a bank as defined under the Recovery of Debts Due to Banks and Financial Institution Act – Held that:- respondent 1 filed the original application, the DRT had jurisdiction to entertain it. Respondent 1 had substantive right to claim the amount. It cannot be denied to it because it has surrendered it’s licence during the pendency of the original application. Surrender of the banking licence does not extinguish the petitioners’ liability. Respondent 1 cannot be denied relief because of the subsequent event since at the date of the institution of the suit, it had a substantive right to claim the relief. petition is, therefore, dismissed
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