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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHREE CHANDRASHEKHAR, CJ, GAUTAM A. ANKHAD, J.
Bank of Baroda - Appellant
Versus
Anil D. Ambani And Ors. - Respondents
APPEAL (L) NO.43022 OF 2025, WITH INTERIM APPLICATION (L) NO.43024 OF 2025, APPEAL (L) NO.43052 OF 2025, WITH, INTERIM APPLICATION (L) NO.43054 OF 2025, APPEAL (L) NO.43081 OF 2025 WITH INTERIM APPLICATION (L) NO.43083 OF 2025, APPEAL (L) NO.760 OF 2026 WITH INTERIM APPLICATION (L) NO.762 OF 2026, APPEAL (L) NO.764 OF 2026 WITH INTERIM APPLICATION (L) NO.767 OF 2026, APPEAL (L) NO.765 OF 2026 WITH INTERIM APPLICATION (L) NO.768 OF 2026
Decided On : 23-02-2026
| Table of Content |
|---|
| 1. suits challenge forensic report invalidity due to auditor disqualification. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. single judge invalidates report for bdo ineligibility; grants injunction. (Para 9 , 10 , 11 , 12 , 13 , 14) |
| 3. 2024 directions prospective; 2016 permits non-ca forensic experts. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25) |
| 4. report requires qualified ca; fraud tag causes irreparable harm. (Para 26 , 27 , 28 , 29 , 30) |
| 5. 2016 actions survive 2024 supersession without retrospective effect. (Para 31 , 32 , 33 , 34 , 35) |
| 6. clause 8.8.2 allows external forensic experts sans ca status. (Para 36 , 37 , 38 , 39 , 40 , 41) |
| 7. injunction demands prima facie case from pleadings only. (Para 42 , 43 , 44 , 45) |
| 8. delay, conduct bar relief; reverse injunction, dismiss applications. (Para 46 , 47 , 48 , 49 , 50 , 51 , 52) |
Judgment :
Shree Chandrashekhar, CJ :
In this batch of Appeals, the Bank of Baroda, IDBI Bank Limited, Indian Overseas Bank and BDO India LLP have challenged the common judgment delivered on 24th December 2025 in the Interim Applications filed by the plaintiff vide Interim Application (L) No. 35925 of 2025 in Suit (L) No. 35923 of 2025, Interim Application (L) No. 37575 of 2025 in Suit (L) No.37573 of 2025 and Interim Application (L) No. 37865 of 2025 in Suit (L) No. 37862 of 2025. These Interim Applications filed by the plaintiff under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 seeking stay of all actions taken by the defendant-Banks under the Forensic Report dated 15th October 2020 have been allowed and disposed of in terms of paragraph no. 80 of the judgment dated 24th December 2025. The defendant-Banks have been restrained to proceed further with the show-cause notice issued by them or to take any further action under the Forensic Report. A learned Single Judge of this Court recorded his prima facie satisfaction for granting interim relief in favor of the plaintiff and passed an order, as under: -
“80. Having prima facie being satisfied for grant of interim relief on the basis of the above observations and findings, the FAR i.e. Forensic Audit Report dated 15.10.2020 appended at Exhibit ‘A’ to the 3 Suit plaints not being in consonance with the RBI Master Directions and for the aforementioned reasons, interim relief is granted to Plaintiff in terms of prayer clause (i) in Suit (L) No.35923 of 2025 and Suit (L) No.37573 of 2025 and in terms of prayer clause (j) in Suit (L) No.37862 of 2025 which read thus:-
In Suit (L) No.35923 of 2025:-
“i. That pending the hearing and final disposal of this Suit, this Hon’ble Court be pleased to
(i) stay all actions already taken by Defendants under or in reliance upon the Report dated 15 October 2020 (Exhibit “A” hereto) or the Show Cause Notice dated 2 December 2024 (Exhibit “B” hereto); and
(ii) restrain the Defendants from taking any further action or proceedings under or in reliance upon the said Report dated 15 October 2020 or the said Show Cause Notice dated 2 December 2024.”
(ii) In Suit (L) No.37573 of 2025: -
“i. That pending the hearing and final disposal of this Suit, this Hon’ble Court be pleased to
(i) stay all actions already taken by Defendants under or in reliance upon the Report dated 15 October 2020 (Exhibit “A” hereto) or the Show Cause Notice dated 31 May 2024 (Exhibit “B” hereto); and
(ii) restrain the Defendants from taking any further action or proceedings under or in reliance upon the said Report dated 15 October 2020 or the said Show Cause Notice dated 31 May 2024.”
(iii) In Suit (L) No. 37862 of 2025: -
“j. That pending the hearing and final disposal of this Suit, this Hon’ble Court be pleased to
(i) stay all actions already taken by Defendants under or in reliance upon the Report dated 15 October 2020 (Exhibit “A” hereto) or the Show Cause Notice dated 2 January 2024 (Exhibit “B” hereto) and Fraud Declaration Order dated 2 September 2025 (Exhibit “C” hereto); and
(ii) restrain the Defendants from taking any fur
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