H share Dongfang Electrical Machinery is suing the Luohuang department of China Construction Bank's Chongqing sub-branch for 156 million yuan (about HK$145.23 million) in deposits. The firm said between January 30, 1996, and January 24, last year, it entered into seven deposit agreements with the bank's Luohuang department. Under the agreement, Dongfang would be repaid the principal together with interest accrued and the Luohuang department could utilise the funds in accordance with state policy. But the Luohuang department had failed to honour its repayment obligations under the agreement, it said. On April 14, Dongfang instructed its counsel to commence civil proceedings against the bank's Chongqing sub-branch in the Chongqing City Higher People's Court.