An Indian software consulting, outsourcing and business solutions company has filed a civil suit against Deutsche Bank in a Bangalore court in a dispute in which the bank has accused the company of providing false letters of credit (L/Cs).

Prithvi Information Solutions Limited has now obtained an interim injunction demanding that Deutsche Bank makes no defamatory statements about the company, it said in a filing to the Bangalore Stock Exchange this week.

Bad publicity

The company is concerned that about the bad publicity attached to Deutsche Bank's allegations.

Prithvi claims the matter should be treated as a civil case, and appears to have persuaded the court in Bangalore that this may well be the case. An official statement has been obtained that says the matter "seemed to be civil in nature."

False documents

Deutsche Bank had lodged a complaint with the Bangalore police against Prithvi, accusing it of making false representations to secure credit, forex and hedging facilities.

The bank has also charged Prithvi with fraud amounting to the equivalent of around US$6.7 million.

Reputational damage

The bank alleges that Prithvi had provided a series of false L/Cs from several US-based companies, including T-Mobile, Johns Hopkins Hospital and Starpoint Solutions LLC.

A Privthi spokesman has said that these US companies are concerned about being named in this case.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.