Delhi High Court Refuses To Restore LOC Against SSK Trading Directors In Bank Fraud Case

On 4 June, the Delhi High Court dismissed Bank of Baroda's appeal and upheld a 21 January 2026 order of a Single Judge that had quashed a Look Out Circular (LOC) issued against Surender Kumar Bansal and another director of SSK Trading Pvt. Ltd. in a bank fraud and loan default case, subject to conditions requiring them to cooperate with the criminal trial and obtain prior permission before travelling abroad. A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia...

S.138 NI Act Case Cannot Fail For Non-Examination Of Authorised Representative: Calcutta High Court

The Calcutta High Court on 20 May held that a complaint under Section 138 of the Negotiable Instruments Act, 1881 cannot be rejected solely on the ground that the complainant's original authorised representative was not examined, where the court could have exercised powers under Section 311 CrPC to summon the witness and ensure a just decision. Justice Ajoy Kumar Mukherjee allowed the appeal filed by Shriram Transport Finance Co. Ltd. and set aside the judgment dated 27 August 2021 passed by...

DRT Competent To Order Release Of Title Documents After Loan Settlement: Allahabad High Court

On 4 June, the Allahabad High Court held that the Debts Recovery Tribunal (DRT) can decide applications seeking release of title documents from a bank after full repayment of a loan. Borrowers cannot invoke writ jurisdiction for release of such documents when an effective remedy is available before the DRT. A Division Bench of Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary dismissed a writ petition filed by R.S. Contractors and Engineers against Canara Bank, holding that the petitioners...

Pre-Deposit Under SARFAESI Can Be Based On Creditor's Claim If DRT Has Not Determined Debt: Kerala HC

On 2 June, the Kerala High Court held that where the Debts Recovery Tribunal (DRT) has not determined the debt due from a borrower, the pre-deposit required for maintaining an appeal under Section 18 of the SARFAESI Act can be computed on the basis of the amount claimed by the secured creditor. A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. allowed Canara Bank's appeal in part against a Single Judge's order on the computation of pre-deposit for a SARFAESI...

Failed Auctions, Litigation Concerns Cannot Depress Secured Asset Value Under SARFAESI: DRAT Chennai

The Debts Recovery Appellate Tribunal (DRAT), Chennai, on 13 May held that a mere apprehension of litigation and the failure of earlier auctions cannot, by themselves, justify a substantial reduction in the market value of a secured asset. A Bench presided over by Justice G. Chandrasekharan allowed the appeal filed by ITG Energy Ltd. and others and set aside a SARFAESI auction conducted by CSB Bank after finding that the borrower's property had been grossly undervalued and sold through a flawed...

Writ Petition Not Maintainable Against Private ARC Enforcing Security Interest: Madras High Court

On 2 June, the Madras High Court dismissed a writ petition challenging a pre-sale auction notice issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and held that Article 226 jurisdiction does not extend to a private Asset Reconstruction Company (ARC) enforcing contractual rights, and that the borrower must approach the Debts Recovery Tribunal (DRT). The Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and...

Cheque Dishonour Notice Must Specify Amount Demanded, Else No Valid Notice In Eye Of Law: Kerala High Court

The Kerala High Court has held that a statutory demand notice issued in a cheque dishonour case must specifically mention the amount demanded, failing which there would be no legal notice in the eye of law. “Only when the notice is specific about the amount, it is possible for the recipient of the notice to pay the amount which was specifically asked for to avoid penal consequences,” the Court observed. Justice A Badharudeen made the observation while dismissing an appeal filed against the...

Technical Glitch Could Have Misled Bidder; Kerala High Court Directs Central Bank To Refund Auction Deposit

The Kerala High Court has upheld a direction requiring the Central Bank of India to refund money deposited by an auction participant after finding that an admitted technical glitch could have led her to believe that her bid had not been accepted. A Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. passed the order while partly allowing an appeal filed by the Bank against a Single Judge's decision directing a refund of the amount deposited by the auction participant and...

Supreme Court Says Criminal Prosecution After DRT-Recorded Loan Settlement Was Abuse of Process

The Supreme Court on Friday quashed criminal proceedings against a borrower accused of obtaining enhanced credit facilities using forged audit reports, holding that continuation of the prosecution would amount to an abuse of process after the loan account had been settled under a compromise approved by the bank, implemented by the parties and recorded before the Debts Recovery Tribunal (DRT). A Bench of Justices B.V. Nagarathna and Ujjal Bhuyan passed the judgment while allowing an appeal filed...

Supreme Court Issues Notice On Challenge To HC Order Quashing FIR Against HDFC Bank CEO Sashidhar Jagdishan

The Supreme Court on Friday issued notice in a challenge to the Bombay High Court's May 5, 2026, judgment quashing FIR against HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan. The FIRs stemmed from allegations that Jagdishan colluded with certain former trustees of the Lilavati Kirtilal Mehta Medical Trust and allegedly received illegal payments of about Rs 2 Crore from trust funds. A Bench of Justices M.M. Sundresh and Nongmeikapam Kotiswar Singh remarked that it...

Supreme Court Refers To Larger Bench Whether IBC Moratorium Applies To Entire Cheque Bounce Proceedings Or Only Compensatory Aspect

The Supreme Court on Wednesday referred to a larger bench the question of whether insolvency moratorium protections under the Insolvency and Bankruptcy Code apply to cheque dishonor prosecutions, while expressing the view that the criminal component of such proceedings should not be halted during personal insolvency and bankruptcy proceedings. A bench of Justices J.B. Pardiwala and K.V. Viswanathan observed that the issue requires an “authoritative pronouncement” by a three-judge bench after...

Non-Borrower Tenants Need Not Make Pre-Deposit Before Filing Appeal Before DRAT: Karnataka High Court

The Karnataka High Court has held that a tenant or other non-borrower cannot be compelled to make a pre-deposit to maintain an appeal against a Debt Recovery Tribunal order under the SARFAESI Act. It held that the requirement applies only to borrowers. A Division Bench of Justice Suraj Govindaraj and Justice K Manmadha Rao said the statute draws a clear distinction between borrowers and non-borrowers in prescribing conditions for appeal. “Once the appellant is admittedly not a borrower within...