The plea is contending that its shareholders have been 'left in the lurch' and the Centre and the Reserve Bank have failed to protect their interests.
Religare has also sought that the court pass an order allowing substitution of DBS Bank India Limited as defendant in the present suit in place of Lakshmi Vilas Bank.
The amalgamation provides stability and better prospects to LVB's depositors, customers and employees following a period of uncertainty.
Many stakeholders including bank unions have raised questions on the manner in which the LVB was merged with subsidiary of a foreign bank, saying that RBI has gifted LVB for free.
During the Yes Bank rescue earlier this year also, there was an over Rs 7,000-crore bond write-off, but that involved a different instrument called additional tier-I bonds.
The 94-year-old Lakshmi Vilas Bank (LVB) was profitable for 90 years and that the bank has been incurring losses for the past three years only, the association said.
Depositors of Lakshmi Vilas Bank will be able to operate their accounts as customers of DBS Bank India with effect from Friday.
Union Minister Prakash Javadekar said that those responsible for deteriorating financial health of the LVB would be penalised.
The step was taken on the advice of the Reserve Bank of India, in view of the declining financial health of the private sector lender.
LVB is the third bank to be placed under moratorium since September last year after the cooperative bank PMC in 2019 and private sector lender Yes Bank this March.
The step was taken by the government, on the advice of the Reserve Bank of India, in view of the declining financial health of the private sector lender.
Last week the Reserve Bank of India announced that the cash-strapped Lakshmi Vilas Bank will be merged with DBS Bank and will remain under moratorium till December 16.
Such a swift resolution protects the interests of depositors and employees, helps maintain financial stability and prevents chaos.
On Tuesday, the government placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.
S&P said this deal is positive for India's banking sector and will bring much-needed relief to LVB, which has been struggling for many years.