A writ of mandamus can be issued in contractual disputes involving public sector banks if their actions violate principles of public law or public interest.

1. Leave granted.

2. This appeal arising out of SLP (C) No. 11505 of 2010 is directed against the final judgment and order dated 05.04.2010 passed by the High Court at Calcutta in GA No. 2441 of 2009 whereby the High Court dismissed the appeal filed by the appellant - Bank herein against the order of the learned single Judge dated 24.08.2009 in WP No. 485 of 2009 directing the appellant - Bank to return forthwith the title deeds deposited by M/s Devi Ispat Ltd., the Respondent - Company herein.

3. Brief facts:
a) Respondent No. 1 is a Company incorporated under the name and style of M/s Devi Ispat Ltd. The Respondent - Company carries on the business of manufacturing and trading in ingots and various other types of steel and for the said purpose requires financial support from the financial institutions like the appellant - Bank. Since the very inception of the respondent - Company, it has been banking with the appellant - Bank and availing various credit facilities like Term Loan, Working Capital Demand Loan, Cash Credit and Letter of Credit facility. On 16.10.2006, the respondent - Company wrote a letter to the appellant - Bank requesting it to review and enhance its credit facilities. On 15.12.2006, the appellant - Bank intimated the respondent - Company of its decision of review and enhanced credit facilities of the Company's account whereby the Company was to enjoy two Term Loans being Term Loan I for Rs. 360 lacs being Account No. 1103590030, Term Loan II for Rs. 215 lacs being Account No. 1103590041, Cash Credit for Rs. 300 lacs being Account No. 1103589988, Working Capital Demand Loan for Rs. 1200 lacs being Account No. 3001640109 and a Letter of Credit in favour of the West Bengal State Electricity Board for Rs. 56 lacs.
b) Due to various irregularities in the account of the respondent - Company, the appellant - Bank by various letters between 15.09.2008 to 24.04.2009, advised the respondent - Company to shift its loan account to some other Bank. On 12.01.2009, the appellant - Bank sent the Credit Information Report of the respondent - Company to its new Banker, namely, the State Bank of India. On 25.02.2009, the appellant - Bank received an Internal Audit Report in respect of the fraud perpetrated in the accounts of M/s Rajco Steel Enterprises and M/s Kali International Pvt. Ltd., whereby crores of rupees were siphoned away to the account of the respondent - Company. Therefore, on 14.03.2009, the appellant - Bank filed two complaints with the Superintendent of Police, Central Bureau of Investigation, Kolkata complaining of the fraud and requesting the CBI, Kolkata to investigate into the matter.
c) On 02.04.2009, Special Audit Team of the appellant - Bank submitted its report on the fraud committed by the respondent - Company which revealed the transfer of a huge amount of funds from the account of M/s Rajco Steel Enterprises and M/s Kali International Pvt. Ltd. to the account of the respondent - Company. On 06.05.2009, the respondent - Company requested the appellant - Bank to handover the original title deeds of its factory premises and all the collateral securities held by it as against the Company as well as from Mr. Nirmal Kumar Mandhani, Director of the Company (respondent No. 2 herein) to the State Bank of India, Chowringhee Branch, Kolkata to whom they had transferred their account. On 09.05.2009, the State Bank of India issued a Banker's cheque of Rs. 15 crores to the respondent - Company which the appellant - Bank had encashed and appropriated in lieu of the outstanding balances lying against the respondent -