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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Sukhii Projects LLP – Appellant
Versus
Union of India, Rep. by its Principal Secretary FS, Department of Financial Services, Ministry of Finance, New Delhi – Respondent
ORDER :
Nagesh Bheemapaka, J.
This Writ Petition questions the inaction of Respondents 4 and 5 in effecting change in authorised signatories of the current account of petitioners' firm in their banks, as per the Board Resolution dated 21-12-2024. A direction is sought to Respondents 4 and 5 to implement the change forthwith. The grievance of petitioner is that respondent banks have refused to honour and implement a valid board resolution duly passed in accordance with the LLP Agreement and confirmed by the Arbitral Award. The impugned refusal lacks authority of law, violates the LLP's contractual autonomy, and infringes upon Articles 14, 19 (1) (g) and 300-A of the Constitution. Petitioner further challenged the order of the 3rd respondent dated 25-08-2025 as illegal and arbitrary.
2. The brief facts of the case are, petitioner is a limited liability partnership firm for purchase and development of lands, construction of flats thereof, residential and commercial complex or complexes either singly or jointly or in partnership, comprising offices for sale or self-use or for earning rental earning thereon by letting out individual units in such units. The firm also intends to purchase an
The court ruled that private banks do not qualify as state instrumentalities under Article 12, and no writ lies against them unless statutory rights or fundamental rights are infringed.
The bank's decision to freeze a partnership account amid disputes is justified to protect interests and comply with arbitration awards regarding partner entitlements.
A bank cannot freeze a company's account without a valid order from an adjudicatory forum, even amid management disputes.
A bank cannot unilaterally freeze a partnership firm's account to secure debts from a separate proprietorship, as mutuality of obligation must exist for the right of set-off to apply.
Disputes arising from partnership mismanagement and exclusion of partners merit arbitration, affirming the obligation of partners to act in good faith and uphold fiduciary duties.
Debt Recovery and Monetary Laws - Partnership Firm - Bank internet banking facility of Current Account - Distribution and sale of LPG in retail to consumers - As per Section 33 of Partnership Act, 19....
A partner's execution of a Facility Agreement binds the LLP, and objections regarding authority or non-signatory status should be resolved in arbitration.
when the decision making process of the Bank is found to be not irregular or illegal or arbitrary in any form this Court is unable to exercise the discretion.
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