A bank’s “paramount right of set-off and general lien” over a borrower’s accounts does not extend to life-insurance proceeds received by his widow on his death, the Allahabad High Court held prima facie, ordering SBI to refund Rs 17.29 lakh it had recovered from a widow’s account towards her late husband’s personal loan. Prayagraj: The […]
The Allahabad High Court has ordered the State Bank of India to refund Rs 19.9 lakh it debited from a woman’s own fixed deposit to recover a personal loan taken by her late husband, who died of Covid, holding that she had no privity of contract with the Bank and that the money was hers. Describing the Bank’s conduct of shuffling her account between branches to make the debit as ‘abominable’ and a serious breach of trust, the Court also awarded Rs 1 lakh compensation.
The Mumbai Bench of the NCLT admitted SBI’s application seeking personal insolvency proceedings against Reliance Group Chairman Anil Ambani. The Tribunal appointed a Resolution Professional and directed issuance of a public notice inviting creditor claims, marking a major development in the insolvency process.
The Delhi High Court questioned why Union Bank issued a fraud-related show cause notice to Jai Anmol Ambani after Reliance Home Finance’s resolution plan was already approved by lenders and the Supreme Court. While refusing to stay the proceedings, the Court directed the Bank to hear Ambani and pass a reasoned order, subject to the High Court’s final decision.
