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The United Commercial Bank and Anr. v. Gangadhar Mohanty and Anr.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 10948 of 2016)Decided 18 Nov 2016
Civil Appeal No. 10948 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

This order sends the case back; it does not decide the dispute. In a writ petition, the High Court directed the bank's Zonal Manager to file an affidavit confirming that no compromise had been made where a mortgaged property's value exceeded the outstanding loan amount. The bank challenged that direction.

Decision Breakdown

This is not a final decision on the dispute. Both sides agreed that the matter could go back to the High Court without the bank having to file the affidavit. Without expressing any opinion on the merits, the Court set aside the direction and sent the matter back to the High Court, which was directed to dispose of the writ petition by 31.03.2017.

Lesson Learnt

There is no final ruling yet on the underlying dispute over the loan settlement. The order resolves only the affidavit requirement and leaves the merits to the High Court.

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

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