Agro Haryana, New Delhi A Delhi court has dismissed a recovery suit against a State Bank of India (SBI) loan defaulter who has died.
The court said that any bank and especially SBI being the leading bank of the country, it is expected that it will take proactive steps to ensure that the people against whom it has filed the case are dead or alive.
District Judge Surinder S Rathi was hearing a suit filed by SBI for recovery of about Rs 13.51 lakh including interest against defendant Siya Nand.
The court first asked the bank to investigate the defendant, after which it learned that Nand had died two years before the suit was filed.
He then issued a notice to the branch manager concerned for giving a false affidavit and sent a notice to the General Manager (Law, Recovery and Litigation) asking him to explain why the bank had decided to file a case against a dead person.
“In response, SBI has admitted its mistake and assured the court that it will take appropriate action against the erring officials for not complying with the extant internal circular in this regard,” the court said in an order on November 2. Used to be.”
The court said that there is nothing in the standard operating procedures (SOP) being followed by the bank as to how to ascertain whether the defendant sought to be prosecuted is dead or alive.
The court said, “It is not expected of a bank to sit and wait for information in this regard and if it does not get any information, then it should proceed to sue the deceased person.”
It is expected from any bank especially SBI being the leading bank in our country to take proactive steps. It should be ensured whether the people sought to be prosecuted are dead or alive.
The court also said that SBI has accepted the court’s suggestion that its case officers will collect data from the Chief Registrar of Births and Deaths.
Taking note of the unconditional apology sought by the branch manager, the judge quashed the notice issued to him and said, “SBI is the leading nationalized bank in our country and stands as a beacon of efficiency, professionalism, transparency and ethics.” Will lead the banking industry in.