THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA CIVIL MISCELLANEOUS APPEAL No.1173 of 2009 29.12.2009 Between: ICICI Bank Limited and others … Appellants AND M/s.Southern Rocks and Minerals (P) Ltd., and others … Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA CIVIL MISCELLANEOUS APPEAL No.1173 of 2009 JUDGMENT: (per Hon’ble Sri Justice V.V.S.Rao) This miscellaneous appeal is by defendants, namely, ICICI Bank Limited and its two branches. Aggrieved by order, dated 01.10.2009, passed by Hon’ble II Additional Chief Judge, City Civil Courts, Hyderabad, in I.A.No.2164 of 2008 in O.S.No.340 of 2008 directing “status quo in all respects to be maintained by both the parties”, present appeal is filed. The respondents herein instituted the suit praying for declaration and consequential permanent injunction restraining appellants from initiating proceedings for recovery of the amounts. The declaration sought is in respect of ISDA Master Agreement dated 06.03.2007 between the parties as void ab initio and ultra vires the RBI Guidelines and consequential injunction restraining the appellants in enforcing and recovering the amounts under the said agreement and schedule thereunder. The respondents also filed interlocutory application for ad interim injunction restraining the appellants from initiating any recovery proceedings against them. The appellants opposed the application inter alia on the ground that civil Court has no territorial jurisdiction and the jurisdiction is barred under the provisions of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (Recovery Act, for brevity) as well as Section 41(b) of the Specific Relief Act, 1963. The Court below by impugned order directed status quo to be maintained. When connected miscellaneous applications in this appeal were listed before this Court, we passed orders suspending the impugned order. The respondents have now moved C.M.A.M.P.No.2203 of 2009 for vacating the same. At that stage, it has been brought to the notice of this Court that recovery proceedings initiated by appellants before the Debts Recovery Tribunal-III, Mumbai, being O.A.No.391 of 2009 has been taken cognisance of by DRT and notices are ordered, pursuant to which respondents also appeared before DRT. Apart from the question of territorial jurisdiction, having regard to Section 41(b) of the Specific Relief Act, an injunction restraining to initiate proceedings in the Court of law would not have been issued. Be that as it is, now that DRT is ceased of the matter, and also having regard to the fact that Court below also directed the parties to get ready with the trial, we are of considered opinion that the order of status quo in I.A.No.2164 of 2008 can no more be enforced nor it subsists as of today. Therefore, we dispose of this appeal giving liberty to the parties to pursue their remedies as advised. We also give liberty to the appellants to file appropriate application under Order XIV Rule 2(2) of the Code of Civil Procedure, 1908 for trying the question of territorial jurisdiction and the jurisdiction to entertain the suit as per the provisions of Recovery Act. As and when such application is filed, the Court below is directed to deal with such application and pass appropriate orders. The civil miscellaneous appeal is accordingly disposed of. No costs. _________________ (V.V.S.RAO,J) ____________________ (B.N.RAO NALLA, J) 29.12.2009 pln