The Bangalore-based company joins half a dozen firms that have taken their banks to court, alleging that they were incorrectly sold derivative contracts that go against the central bank's guidelines on these products.
The company has filed a suit in the Bangalore City Civil Court for declaring the contract as void, saying it violates the exchange control regulations, including the Reserve Bank of India's master circulars and guidelines on derivatives.
Earlier, HDFC Bank had filed a claim against the company in the Debt Recovery Tribunal, Bangalore for recovery of Rs 4.53 crore allegedly due to them on this contract, the company added in its statement.
Foreign exchange experts said this could be a contingent premium the company needs to pay as part of a 'contingent premium paying structure' it has opted for a higher rupee realisation on its dollar receivables.