Gujarat High Court

Interim Status Quo Orders on Fixed Deposits Cease Informally Upon Withdrawal of Substantive Legal Proceedings

ANAI HIREN JHAVERI vs CENTRAL BANK OF INDIA

Gujarat High CourtJUDGMENT: July 29, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought to encash Fixed Deposits (FDs) held in his name, which were originally created during his minority under the guardianship of his father

Source reference: p. 3, para. 2

The respondent-Bank refused redemption, citing an interim status quo order dated 21.05.2021 passed by the Family Court in a matrimonial suit (HMP No. 1082/2019) between the petitioner’s parents

Source reference: p. 3, para. 2, 4

The petitioner contended that he had attained majority and that the underlying Family Suit had since been withdrawn following an order by the High Court in SCA No. 17068 of 2024

Source reference: p. 3, para. 2

Consequently, the petitioner argued that the interim order had lapsed, leaving no legal barrier to redemption

Source reference: p. 4, para. 4
02

Issues

1. Whether the respondent-Bank was legally justified in refusing the redemption of Fixed Deposits based on a status quo order from a suit that had subsequently been withdrawn

Source reference: p. 4, para. 4

2. Whether an interim order of status quo survives the withdrawal of the main proceedings in which it was granted

Source reference: p. 4, para. 4
03

Law Applied

The court applied the fundamental principle of civil procedure that interim orders are co-terminus with the main proceedings; upon the withdrawal or dismissal of the primary suit, any interlocutory or interim injunction/status quo order automatically ceases to operate

Source reference: p. 4, para. 4, 6

The court further relied on the petitioner’s legal right as a major to manage and redeem financial instruments held in his name once the legal impediment of guardianship and court-mandated restrictions are removed

Source reference: no citation
04

Reasoning

The court examined the procedural history and noted the undisputed fact that the matrimonial dispute (Family Suit HMP No. 1082 of 2019), which triggered the status quo order, was withdrawn

Source reference: p. 4, para. 4

The court reasoned that since the main suit no longer existed, the interim order dated 21.05.2021 could not survive independently

Source reference: p. 4, para. 4

Furthermore, the respondent-Bank’s counsel admitted to these facts and conceded that there was no continuing legal stay against the FDs

Source reference: p. 4, para. 5

Therefore, the court found that the refusal by the Bank and the subsequent rejection by the Banking Ombudsman were based on a non-existent legal restriction

Source reference: p. 4-5, para. 6
05

Holding

The court allowed the petition, holding that as the Family Suit had been withdrawn, no order restraining the encashment of the FDs remained in force

The Court quashed the communication from the Ombudsman dated 05.02.2026 and the Bank's refusals dated 11.08.2025 and 18.09.2025

Source reference: p. 1-2, 5

The respondent-Bank was directed to permit the petitioner to withdraw the Fixed Deposits along with all accrued interest

Source reference: p. 2, 5, para. 6

Relief was granted in terms of prayers 8(A) and 8(B)

Source reference: p. 5, para. 6
Gujarat High Court

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ANAI HIREN JHAVERIvsCENTRAL BANK OF INDIA

Gujarat High Court · July 29, 2026

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