CITIBANK N.A. versus HITEN P. DALAL & ORS.

CITIBANK N.A. versus HITEN P. DALAL & ORS.

The amount payable by way of restitution is to be ascertained using realistic and verifiable market value, specifically the actual sale prices at which the bonds were disposed of by Citibank, rather than assuming the respondent would have retained them till maturity.

Parties
Appellant: Citibank N.A.; Respondent: Hiten P. Dalal & Ors.
Jurisdiction
India
Judgment Date
21 August 2015
Procedural Posture
Civil Appeal / Appeal Against Order of Special Court at Mumbai Under the Special Court (trial of Offences Relating to Transactions in Securities) Act, 1992
Outcome
Appeal allowed
Legal Topics
Section 144 CPC, Restitution of Money Decree, Market Value Assessment
Civil Procedure Law Restitution Section 144 CPC Restitution of Money Decree Market Value Assessment

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Parties

Citibank N.A.

Appellant

Hiten P. Dalal & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal Against Order of Special Court at Mumbai Under the Special Court (trial of Offences Relating to Transactions in Securities) Act, 1992

Legal Issues

  1. 1 What is the proper method to ascertain the amount payable by way of restitution under Section 144 CPC when bonds have been sold and are no longer available?

Ratio Decidendi

The amount payable by way of restitution is to be ascertained using realistic and verifiable market value, specifically the actual sale prices at which the bonds were disposed of by Citibank, rather than assuming the respondent would have retained them till maturity.

Court Disposition

Appeal allowed

Orders

  • Impugned order of the Special Court is set aside.
  • The final amount payable to Canfina as on 20.7.2004 is Rs.115,08,98,835/-; after adjustment, Citibank is entitled to refund of Rs.22,14,36,756/- as on 25.4.2005.