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IN THE HIGH COURT OF DELHI AT NEW DELHI
MANOJ JAIN
Mukesh Kumar Bansal – Appellant
Versus
Central Bank Of India – Respondent
JUDGMENT :
MANOJ JAIN, J
1. This petition poses question whether it is permissible for any bank to "put on hold‟ bank account of one entity to secure its dues to be recovered from another entity.
2. The broad facts are not in dispute.
3. Petitioner and his wife Mrs. Jyoti Bansal (respondent No. 2 herein) are partners in a partnership firm - M/s Imperial Finance Company. Such partnership firm maintains current account no. 3688550290 in one of the branches of the respondent no.1-Bank. Such branch is at Saraswati Bal Mandir, Uttam Nagar Branch, Rajouri Garden, Delhi.
4. Notably, Mrs. Jyoti Bansal, the other partner of the above said partnership firm, as sole- proprietor of M/s Next World Technologies is maintaining a separate current account i.e. CC Account no. 3163455860 with the respondent Bank, albeit, in another branch i.e. Parliament Street Branch, New Delhi, 110001.
5. Apparently, the bank accounts are of two different entities, maintained at different branches.
6. As averred, the petitioner, when, attempted to conduct an online transaction on 10.02.2021 in his abovesaid partnership firm's current account, he could not do so. He, eventually, learnt that the bank had placed their said p
A bank cannot unilaterally freeze a partnership firm's account to secure debts from a separate proprietorship, as mutuality of obligation must exist for the right of set-off to apply.
The bank's decision to freeze a partnership account amid disputes is justified to protect interests and comply with arbitration awards regarding partner entitlements.
Point of Law : Unilateral act of the 1st respondent-Bank to freeze the current account of the petitioner, when litigations are pending on the issue of debts of the Green Gateway Leisure Limited, cann....
A bank cannot assert a general lien over title deeds related to a home loan to secure unrelated debts; repayment of the home loan extinguishes the lien.
Home loan – No law for time being in force, permits bank to retain title deeds alleging dues in respect of any other transaction, under Section 171 of Contract Act.
: Appellant – Bank under the provisions of SARFAESI in respect of other loan accounts and in such circumstances, petitioner cannot seek any remedy before the Debts Recovery Tribunal
A bank cannot exercise a general lien to retain title deeds for debts where the mortgagor is not a borrower and has cleared the outstanding loan.
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