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BEFORE THE HONOURABLE COURs AT ERNAKULAM
BETWEEN:
M/S AKAY FLAVOURS AND AROMATICS LIMITED
A company incorporated under the Companies ActHaving its office at AmbunadMalaidamthuruth P.OAluvaErnakulam-683561
ANDM/S ICICI BANK LIMITED
Agri business group2
nd
floor,adoni towersSA roadKadavantharaCochin-6820106
 
The plaintiff M/S AKAY Flavours and Aromatics PVT Ltd is a companyincorporated under the companies act, having its office at Ambunad ,Malaidamthuruth P.O, Aluva, Ernakulam-683561.and is represented byits aged son of residing atThe address for service of all process is that of its a counsel M/S Joseph& Kurien Advocates, Providence road cochinM/S ICICI Bank Limited is the defendant. The address for service of all processes on the defendants is as given above or their counsels as andwhen appointed.The plaintiff respectfully submits as follows : The plaintiff is a registered company registered under the provisions of the companies act 1956 with its registered office as given in the causetitle. The plaintiff has been functioning since and has been trading inflavors and aromatics since then. The company having its major marketsabroad has a lot of exports and imports.Since the exposure to foreign markets leads to greater exposure to foreignexchange, the company has been regularly engaging in various means of hedging its foreign currency exposure including derivative transactions inforward options with its banker The State Bank of India, through its branch at . The derivatives provided by The State Bank of India have been sufficiently hedging the plaintiff’s foreign exchange
 
exposure with consideration to its paid up capital , working capitalrequirements and working requirements.The defendant a private bank governed solely by profit motivesapproached the plaintiff in its office on ,and told the plaintiff aboutthe various derivative products the defendants intended to sell to the plaintiff. The plaintiff extended due courtesy to the defendants andinformed them that the matter shall be communicated to the higher upsand the developments if any shall be informed to the defendantsThereafter an offer for forward/option/other derivative transactions to allimit of Rs 10.0 million was extended to the plaintiff by the defendantsvide their letter dated 13-11-07 which is submitted as exhibit-1 before thiscourt. However the matter was communicated to the higher ups.The matter was further discussed between the representatives of the plaintiff and the defendants , during which the defendants driven by their  profit motive misled the plaintiff into believing that the offer made by hedefendants were suitable to hedge its foreign exchange exposure.Derivatives , especially foreign exchange derivatives being very complextopics requiring vast expertise to understand, the plaintiff was made to believe the words of the defendant in a series of discussions that both the parties had thereof. The defendants being a bank with far moreunderstanding and expertise in the area arguably had an upper hand in thediscussions and the plaintiff was left with no options but to believe thedefendants.The matter was tabled before the board in its meeting on 28-12-07,wherein solely on the basis of the false and deceiving information put
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