Recovery proceeding against bank.

Saurabh Kumar Singh (Querist) 01 May 2013 This query is : Resolved
Dear Experts,

We had issued Bank Guarantee(BG) for XX amount in favour of YY Director, ZZ Dept. New Delhi.

Against no claim private bank closed the BG.

YY Director misappropriated the receiving date claimed the BG after expiry before bank. we lodge our concern and evidence before bank.

Bank ignored our submission and made the payment of XX amount in favour of YY Director.

Then Bank forced us to make the payment of XX amount otherwise our a/c will be classified as NPA in the books of the banker.

To safeguard our business interest we made the payment XX amount in favour of Bank under protest and in letter mentioned that
"without prejudice, we reserve our right to take appropriate legal recourse as available under law".

please suggest what type of legal action we can take against bank for recovery of our XX amount?

Being a limited company can we file a civil recovery suit against Bank followed by legal notice?

Please guide appropriate way out.

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ajay sethi (Expert) 01 May 2013
limited company cna fford legal fees .

Devajyoti Barman (Expert) 01 May 2013
Pvt Ltd cna always file civil suit for recovery of money.

prabhakar singh (Expert) 01 May 2013
Q.Being a limited company can we file a civil recovery suit against Bank followed by legal notice?

Answer:
YES YOU CAN.