AIR 2008 SUPREME COURT 2585 ::2008 AIR SCW 4343 ::2008 (12) SCC 541 ::2008 (4) RecCivR 95 ::(2008) 7 Scale 363 ::2008 (2) BankCLR 675 ::(2008) 6 AllMR 81 (SC) ::2008 (4) Cal HN 119 ::2008 (3) BankCas 387 ::2008 (144) Com Cas 200 ::2009 (1) GujLR 284 ::2008 (4) ICC 468

Supreme Court Of India

(From : Gujarat)*

Hon'ble Judge(s): Satya Brata Sinha, Lokeshwar Singh Panta , JJ

(A) Constitution of India , Art.226— Writ jurisdiction - Nationalised Banks - Not amenable to writ jurisdiction as regards enforcement of contracts. It is one thing to say that the Public Sector Banks having regard to the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act (1970) should discharge their functions keeping in mind the larger public interest but ordinarily in the matter of enforcement of contract, they are to be governed by the terms thereof, which would not be amenable to writ jurisdiction of the High Court unless the actions of the Banks are found to be wholly arbitrary and unreasonable.(Para 10) (B) Constitution of India , Art.226— Writ petition - Against refusal by Bank to encash FDRs on maturity - Encashment refused as Bank suspected fraud to have been committed against it - Question whether its officers alone or holders of FDR also were responsible for fraud, in dispute - Entertainment of writ petition in circumstances was improper - Court ought to have considered question whether action of Bank was so arbitrary as to invoke public law jurisdiction - Considering disputes involved and right of genuine FDR holder - Necessary directions issued to Bank. L.P.A. No. 258 of 2000, D/-01-10-2003 (Guj). Reversed. ....