https://www.deccanherald.com/india/court-raps-sbi-for-suing-dead-defaulter-2773698
Clipped from: https://www.deccanherald.com/india/court-raps-sbi-for-suing-dead-defaulter-2773698
Representative image showing a man standing in front of an SBI branch.
Credit: Reuters File Photo
New Delhi: Any bank, especially the State Bank of India (SBI) being the leading bank of the country, is expected to take proactive steps to ascertain whether the people being sued by it are dead or alive, a Delhi court has said while rejecting a suit for recovery against a loan defaulter who has passed away.
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District Judge Surinder S Rathi was hearing a suit filed by the SBI for the recovery of around Rs 13.51 lakh, along with interest, against defendant Siya Nand.
The court had earlier asked the bank to conduct an enquiry about the defendant, following which it came to light that Nand had expired two years prior to the filing of the suit.
It had then issued notices to the branch manager concerned for swearing a false affidavit and the general manager (law, recovery and litigation) to explain why the bank had decided to sue a dead man.
“In response thereof, the SBI has accepted its mistake and assured the court that they are taking appropriate action against the erring officials for non-compliance of an existing internal circular in this regard,” the court said in an order passed on November 2.
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