Case Details

  • Case Name: Indian Bank & Ors. vs. Chet Lal Mahto & Ors.
  • Petition: Special Leave to Appeal (C) No(s). 20167/2025.
  • Origin: Impugned final judgment and order dated 05‑06‑2025 in LPA No. 387/2018 of the High Court of Jharkhand, Ranchi.
  • Court: Supreme Court of India.
  • Order Date: Hearing on 26‑05‑2026; order signed by Court Master Kapil Tandon on 01‑06‑2026 17:10:09 IST.
  • Period of Dispute: Not specified beyond the High Court order dated 05‑06‑2025.

Parties Involved

  • Petitioners: Indian Bank & Ors.
  • Respondents: Chet Lal Mahto & Ors. (referred to as contesting respondent No. 1).
  • Amicus Curiae: Siddharth Mittal, learned counsel.
  • Counsel for Petitioners: Mr. Brijesh Kumar Tamber, AOR Mr. Vinay Singh Bist.
  • Counsel for Respondents: Mr. Siddharth Mittal, AOR Mr. Abhijeet Varshney; Mr. Sumit Kumar Sharma; Mrs. Shilpa G Mittal; Mr. Sandeep Jindal, AOR Mr. Pramod Kumar Goel; Ms. Pratiksha Bharti; Ms. Akansha Bharti.

Issues / Allegations / Violations

  • The dispute arose from a claim for damages for a negligent act allegedly committed by Indian Bank.
  • The High Court had directed Indian Bank to deposit Rs 10,00,000 as damages and further allowed the respondent to approach a Civil Court for additional relief.
  • Petitioners challenged the High Court’s direction to permit a civil suit, arguing that the deposited amount should be deemed full settlement.

Findings & Observations

  • The Supreme Court observed that the deposited amount of Rs 10,00,000, together with accrued interest, is sufficient to satisfy all claims of the contesting respondent No. 1.
  • The Court considered the High Court’s further direction to enable the respondent to move the Civil Court as unnecessary in the facts and circumstances of the case.
  • Consequently, the earlier observation by the High Court was set aside.

Penalties / Settlements / Directions

  • The amount of Rs 10,00,000 deposited by Indian Bank shall be treated as a full and final settlement between the parties.
  • The Registry is directed to contact the contesting respondent No. 1 and transfer the amount, along with accrued interest, in his favour.
  • No additional monetary penalty or damages were imposed beyond the settled amount.

Corrective Actions & Future Obligations

  • The Registry must ensure the transfer of the settlement amount to the respondent.
  • No further civil proceedings against the respondent are to be pursued by the High Court’s earlier direction.

Final Ruling & Enforcement

  • The Special Leave Petition (C) No(s). 20167/2025 and any accompanying interlocutory applications are disposed of.
  • The settlement amount is deemed final; the High Court’s direction to allow a civil suit is nullified.
  • The Court recorded appreciation for the assistance rendered by amicus curiae Siddharth Mittal.