'Public Money At Stake': Delhi High Court Restores Union Bank's Recovery Suit Despite 'Lethargic Approach', Imposes 25K Cost
The Delhi High Court has recently expressed dismay at the Union Bank of India over its “lethargic” approach in pursuing a loan recovery suit, leading to multiple adjournments and dismissal in default.
However, it allowed the Bank's plea and agreed to restore the suit, considering the involvement of public money.
“There is no explanation as to why the concerned law officer or the concerned manager of the petitioner bank neither appeared on any of the dates nor kept a track of the proceedings. But the larger issue here is the involvement of public money. If the present petition is not allowed, the ultimate sufferer would be the exchequer,” Justice Girish Kathpalia remarked.
Petitioner-bank had assailed orders dated 04.07.2025 and 15.07.2025 of the trial court, whereby the suit was dismissed for failure to effect service of summons on defendants and repeated non-representation of the Bank.
The High Court observed that prima facie there is no infirmity in the impugned orders inasmuch as “There is not even a whisper as to what the concerned officer of the petitioner bank, dealing with the subject suit was doing all this while.”
In view of such “lethargic and negligent” conduct of the bank, the Court said the suit will be permitted to be revived subject to cost of Rs.25,000/-, initially to be deposited by the bank and then recovered from the salary of the erring officer.
It ordered,
“the petitioner bank shall carryout a detailed inquiry to fix responsibility and also probe as to whether it is a case of mere negligence on the part of the concerned bank officer or a deliberate attempt to help the other side.”
Appearance: Mr. Rajiv Kumar, Advocate for Petitioner
Case title: Union Bank of India v. M/S Shabd Enterprises And Anr
Case no.: CM(M) 2016/2025