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Satheesh V.K. vs. The Federal Bank Ltd.

Not available · 2025 INSC 1140Decided 23 Sept 2025
Not available
Justice Dipankar Datta · Justice K.V. Viswanathan

Background

The appellant, a defaulting borrower, had his loan account classified as a Non-Performing Asset by Federal Bank, which began recovery action under the SARFAESI Act. His writ petition against this was disposed of by the Kerala High Court on 1 October 2024, directing a structured payment schedule. He first challenged that order in a special leave petition before the Supreme Court but withdrew it after the Court expressed reservations. He then filed a review petition before the High Court (which was dismissed), and thereafter filed two fresh appeals before the Supreme Court: one again challenging the original 1 October 2024 order, and one challenging the dismissal of his review petition.

Decision Breakdown

The Bank objected that the appeals were not maintainable, since the appellant had already withdrawn his earlier special leave petition against the same order without seeking liberty to file afresh, and there is generally no appeal against an order refusing review. Relying on the law laid down in Kunhayammed v. State of Kerala and related precedents on the "doctrine of merger," the Supreme Court held that once a litigant withdraws a special leave petition instead of pursuing it to a decision, returning to challenge the very same order later, without having obtained the Court's leave to do so, is barred as being contrary to public policy and the principle that litigation must have finality. The Court also noted the appellant's pattern of moving between forums without showing any genuine intention to repay his dues. It upheld the Bank's preliminary objection and dismissed both appeals as not maintainable, while leaving the appellant free to pursue other lawful remedies.

Lesson Learnt

A litigant who voluntarily withdraws a Supreme Court petition challenging an order cannot later come back and challenge the same order again without having first obtained the Court's specific permission to do so. Courts treat withdrawal without liberty to re-file as a final and binding choice, in the interest of ending litigation.

Official source (sci.gov.in)View Judgment (PDF)

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