The record
Written from the 1 report below. Nothing here is unsourced.
- The Allahabad High Court has ordered State Bank of India to return 19.90 lakh rupees to a widow whose fixed deposit was broken to recover her deceased husband's personal loan.
- Neha Mishra's husband, an assistant professor in Lucknow, had taken a 15 lakh rupee personal loan from SBI in November 2020 and died of Covid-19 in May 2021.
- The court found that Neha Mishra was neither a co-borrower nor a guarantor on the loan, and the loan was in fact covered by an insurance policy for which her husband had paid a premium.
- After sending her a legal notice, the bank broke her fixed deposit and withdrew 19.90 lakh rupees, an action the court called a clandestine act with no legal provision to support it.
- The bench directed SBI to refund the full amount with interest at the fixed deposit rate within four weeks and to pay the woman an additional 1 lakh rupees in compensation.
What to watch next
- Whether SBI complies with the four-week deadline for refunding the money with FD-rate interest.
- Whether the bank recovers the outstanding loan from the insurance policy that covered it.
- Whether SBI appeals the High Court order.
Coverage1
1 report
Indian-language1
All filed from India
Named India · Neha Mishra · Allahabad High Court · Avadhesh Kumar Choudhary · Shekhar B. Saraf · State Bank of India
The 1 report is listed beside the record.
Ask this story
Answers cite the reports above, or say they can't.