Allahabad High Court warned banks against unjustified account freezing, stressing they are trustees, not investigators. Bench of Shekhar B Saraf and Avadhesh Kumar Chaudhary fined Indian Overseas Bank Rs 50,000.
The Delhi High Court ruled that banks failed to prove intentional misuse of borrowed funds by Ratul Puri and Nita Puri, striking down their wilful defaulter status. This decision highlights the need for solid evidence before labeling borrowers, protecting them from serious financial and reputational damage.
