Supreme Court Refuses To Direct IDBI Bank To Honour ₹8.7 Crore Bank Guarantee To CTUIL

The Supreme Court on Friday refused to interfere with the Delhi High Court's division bench order declining to direct IDBI Bank Limited to release ₹8.7 crore to the Central Transmission Utility of India Limited (CTUIL) under a bank guarantee.The Delhi High Court on July 1, 2026 dismissed an appeal filed by Central Transmission Utility of India Limited (CTUIL) challenging a Single Judge's order dated March 19, 2026, which declined to direct IDBI Bank Limited to release ₹8.7 crore under a bank...

Yes Bank's ₹8,415 Crore AT-1 Bond Write-Down After Reconstruction Scheme Took Effect Was Illegal: Supreme Court

The Supreme Court on Thursday held that the Administrator of Yes Bank could not write down ₹8,415 crore worth of Additional Tier-1 (AT-1) bonds after the bank's reconstruction scheme came into force. The court ruled that the requirement to write down the bonds “before reconstitution” meant before the scheme took effect. “Had the intention been otherwise, the clause ought to have read 'before reconstitution is complete',” a bench of Justices Dipankar Datta and Augustine George Masih observed. It...

BREAKING | Yes Bank AT-1 Bond Write-Off: Supreme Court Refuses To Interfere With Bombay High Court Order Quashing It

The Supreme Court on Thursday refused to interfere with the Bombay High Court's order quashing Yes Bank's decision to write off Additional Tier 1 (AT-1) bonds worth ₹8,415 crore in March 2020, leaving the High Court's ruling in favour of the bondholders undisturbed.A Division Bench of Justices Dipankar Datta and A.G. Masih pronounced the judgment in appeals challenging the Bombay High Court's order quashing the write-off of the bonds and the communication issued by Yes Bank's Administrator on...

Kerala High Court Rejects State Nirmithi Kendra's Plea To Prematurely Withdraw ₹3 Crore Bank Deposits

The Kerala High Court has rejected Kerala State Nirmithi Kendra's plea to withdraw ₹3 crore from fixed deposits with Bank of India before maturity. The Bench held that early withdrawal was allowed only in exceptional circumstances under the bank's non-callable deposit scheme.Justices Anil K. Narendran and Muralee Krishna S set aside a July 16, 2026 order directing the bank to release the deposits with normal fixed deposit interest.The bench also held that the contractual dispute involved...

Banks Are Custodians, Cannot Assume Coercive Powers Over Customers' Transactions: Delhi High Court

The Delhi High Court has ruled that banks cannot impose account restrictions or assume coercive powers to investigate customers' banking transactions without legal authority.“The Bank is a custodian of funds for individuals/entities and after being satisfied by the KYC documents permits the opening of an account. Thus, the Bank cannot be permitted to put any banking restrictions on the same and assume coercive powers to investigate banking transactions of its customers and to interdict them in...

Supreme Court Dismisses PIL Seeking Probe Into Overseas Funds Flowing Into Indian Equities, Adani Deals

The Supreme Court on Friday dismissed a Public Interest Litigation (PIL) filed by former journalist Ketan Tirodkar seeking an investigation into alleged overseas fund flows into the Indian equity market, including transactions involving Adani Group entities.A Bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana at the outset, questioned why the petitioner had approached the Supreme Court directly instead of pursuing the remedy available before the Bombay High Court,...

RBI Removes Paytm Payments Bank From Scheduled Banks List After Delhi HC Winding-Up Order

The Reserve Bank of India (RBI) has removed Paytm Payments Bank Limited from the Second Schedule to the Reserve Bank of India Act, 1934. The move follows the Delhi High Court's order directing the winding up of the bank. The RBI announced the exclusion in a press release dated October 7, 2026. It stated that Paytm Payments Bank was removed from the Second Schedule pursuant to a notification dated July 31, 2026. The Second Schedule contains the list of banks recognised as “scheduled banks” under...

Madras High Court Warns Bank-Initiated LOCs Could Leave Debtors At “Mercy Of Wolves Of Creditors”

The Madras High Court has held that a bank manager's letter to the Bureau of Immigration seeking issuance of a Look Out Circular cannot be treated as “law” for restricting a citizen's fundamental right to travel abroad. The court warned that allowing nationalised banks to seek Look Out Circulars (LOCs) against debtors could embolden private creditors and non-banking financial companies (NBFCs) to seek similar restrictions, leaving debtors “at the mercy of wolves of creditors.”“'Law' under...

Delhi High Court Says NatWest Can't Reduce Interest On ₹5.89 Crore Court-Ordered FDR Without Notice

The Delhi High Court on 23 September dismissed an appeal filed by NatWest Markets PLC against a direction requiring it to pay interest at the higher applicable rate on a fixed deposit maintained pursuant to a court order. A Bench comprising Justices Avneesh Jhingan and Shail Jain passed the order while dealing with NatWest's challenge to the Single Judge's direction to deposit the entire amount with the Registrar General along with interest calculated at the average rate applicable during the...

Incorrect Flat Area In Bank Auction Documents Can't Defeat Buyers' Property Rights: Delhi High Court

The Delhi High Court on 30 September held that a cooperative housing society cannot deny flat buyers membership and thereby deprive them of their rights in the property merely because the sale documents executed by a bank contain an incorrect description of the flat's area. A Division Bench comprising Justices Prathiba M. Singh and Dinesh Bhatt directed the cooperative society to issue the petitioners' membership certificate within one week, forward it to the Registrar of Cooperative Societies...

Calcutta High Court Quashes Garnishee Orders Against SBI Over Inoperative Account

The Calcutta High Court has held that the State Bank of India (SBI) could not have remitted Employees' State Insurance (ESI) dues from an “inoperative” account of its customer. It observed that branding the bank a “deemed defaulter” in such circumstances was without application of mind and violated principles of natural justice.Justice Shampa Dutt (Paul) made the observation while quashing garnishee orders issued against SBI in connection with the ESI dues of Eastern Division (Projects)...

Entire Bank Account Cannot Be Frozen For ₹2,253 Disputed Transaction: Calcutta High Court

The Calcutta High Court on 30 September held that an entire bank account cannot be debit-frozen when the disputed transaction under investigation involves only a specific amount, and directed Axis Bank to de-freeze the account while retaining a lien over the disputed amount. Justice Rishad Medora directed Axis Bank to de-freeze the bank account of Sohel Molla, while permitting it to maintain a lien over Rs. 2,253 pending further directions from the investigating officer. The Bench observed: ...