SYMBIOSIS LAW SCHOOL, PUNE

Care | Courage | Competence|Collaboration

Constituent of Symbiosis International (Deemed University)

V Year BA./BB.A. LL.B. (Hons.)

Moot Court Problem no. III1
1. The Nexus Bank, Pune is one of the oldest co-operative banks in Pune city. A wing of
The Times of Hindustan known as ‘Ranker’ a Private Ltd. Company has been engaged
in collection of the data and information for ranking the banks, corporations,
educations institutions etc. since 2016. In 2017, the Nexus Bank of Pune was
awarded the best bank in the category of use of technology, security, and confidence of
the investors and account holders by the Ranker of The Times of Hindustan.

2. In the financial year 2017-18, because of the ranking by the ‘Ranker’ of The Times of
Hindustan, there was a boom in the shares and accounts including fix deposit in the
Nexus Bank of Pune.

3. Mr. Suputrarao a scientist working in Mumbai Computer Forensic Laboratory has

claimed that findings of the Ranker of The Times of Hindustan are based upon
perception and not on actual technological reality. According to Mr. Suputrarao, the
best known security measures in the banking sector must not have been followed by
the Nexus Bank of Pune. He further claimed that they have not declared the
methodology and methods followed in order to arrive at the conclusion and findings.

1 All rights are reserved with Symbiosis Law School, Pune

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4. An International group of cyber fraudsters known as ‘hackers’ infiltrated into a server
of Nexus Bank of Pune and siphoned Rs. 100 Crores between November 2018 and
January 2019. Mrs. Goliwala, the Chief Official of the Nexus Bank of Pune lodged a
complaint against her own officer Mr. Raghvan at the head office. In her complaint,
she claimed that Mr. Raghvan had crucial data of the account in the printed format.
She further claimed that he has handed over the crucial data to hackers. Interpol in
their report dated 2nd January 2016 stated that hackers are from Solmia sovereign
territory.

5. Mr. Raghvan made a statement to the New News Agency that he is not at fault; he
has not handed over anything to anybody. Further, he claimed that there is no data
protection law in India. Therefore, no complaint can be lodged for handing over the
data to anyone.

6. It has been claimed by Mr. Raghvan that a server of Nexus Bank of Pune is located in
the USA and data must have been stolen from the server managed and maintained by
Rubal Private Ltd. Rubal Private Ltd. is aregistered IT service provider company having
the head office in the USA.

7. Mrs. Moriya, an investigation officer unofficially confirmed that Rs. 100 Crores have
been siphoned off from the server located in the USA owned and managed by Rubal
Private Ltd., USA. He further unofficially confirmed that text messages were sent to the
account holders about withdrawal from their accounts, which was immediately
informed by account holders to the Nexus Bank of Pune.

8. Mrs. Sofia, CEO of Rubal Private Ltd., in her interview to American Times, stated that
there are two subparts of the server, one subpart is used to maintain and manage the
deposits and withdrawals (i.e. the part ‘A’ of the server) and there is another subpart of
the server (i.e. part ‘B’ of the server) which is used to send a text message and information
to account holders and the Nexus Bank of Pune. Server ‘A’ and ‘B’ are interconnected with
the help cable.

9. Mrs. Goliwala had claimed that they have taken all due cares and cautions and
therefore, lapses of Rubal Private Ltd. must have been resulted into a breach of the data
and siphoned off the money of the account and shareholders.
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10. During the investigation, Mrs. Moriya an investigation officer found that there is a
jurisdiction clause in the MoU entered by and between Rubal Private Ltd. and Nexus
Bank of Pune. According to the jurisdiction clause in MoU, the USA court shall have
jurisdiction unless prime facie fault is proved by the Nexus Bank of Pune. Whereas, the
Nexus Bank of Pune claimed that jurisdiction clause shall not be applicable to impose
the criminal liability under the Information Technology Act, 2000, the Indian Penal
Code, 1860 and any other laws enforced.

11. In clause no. 5 (i.e. clause on applicable laws) of MoU, it has been stated that the
domestic laws of both the counties (i.e. India and the USA) and the Public and Private
International laws shall be applied in the event of breach of any provision of the MoU
or/and in any other event, which may lead to imposition of the liability on either of the
party.

12. According to Mrs. Sofia, CEO of Rubal Private Ltd., a statement made by Mrs. Goliwala
damaged the brand of the Rubal Private Ltd., which has resulted into collapsing the shares
of the Rubal Private Ltd. and therefore shall be responsible for the liability under the
appropriate laws.

13. The case is listed for hearing.

14. Note: Students can raise appropriate issues and advance the arguments based upon the
above facts with the help of appropriate laws, case laws, and authorities.
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