Bank of India v. M/s. Nexus Minmet Merchandising Pvt. Ltd. & Ors.

Bank of India

…Appellant

…Respondent

Case No: Appeal No. 165/2014

Date of Judgement: 07/11/2023

Judges:

Mr Justice Ashok Menon, Chairperson

For Appellant: Mr. O.A. Das, Advocate.

For Respondent: None.

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Facts:

Arguments by the Appellant (Bank of India):

Arguments by the Respondents:

The arguments of the Respondents are not explicitly mentioned in the summary, as they remained ex-parte.

The only question that arose for consideration in this appeal was whether the amount of ₹1.20 crores was debited into the account of the Respondents without their knowledge or authority. The fact that the amount was wrongfully credited into the account of the 1st Respondent was admitted by the Respondents throughout. The Respondents had volunteered and reimbursed ₹50 lakhs and agreed to refund the balance of ₹1.20 crores within a week, but failed to fulfill the promise. Consequently, the Appellant Bank had to refund the amount to the society and debit the same into the loan account of the 1st Respondent. The very same D.R.T. had approved this act of the Appellant while determining the S.A., and the order of the S.A. was never challenged. A different view could not have been taken by the very same D.R.T. in the O.A., and the finding was erroneous and required to be set aside. The appeal was allowed, setting aside the impugned judgment and order and allowing the O.A. as prayed for against the Respondents jointly and severally. The Respondents were directed to pay a sum of ₹3.78 crores together with interest at the rate of 14.5% per annum with monthly rests with effect from the filing of the O.A. till 09.04.2014 and future interest at the rate of 6% per annum on the aforesaid principal amount adjudged from the date of the disposal of the O.A. till realization. A Recovery Certificate was directed to be issued in the aforesaid terms.

Cases Cited:

Saseendrakumari, Sreepadmam, SEKT vs. State Bank of Travancore AIR 2011 (Ker) 58

Sections and Laws Referred: