Authority: Calcutta High Court (High Court at Calcutta)

Order Date: 10 July 2026

Case Overview

  • Parties: Multiple writ petitioners (agriculturists from Kotulpur, Bankura district) versus Punjab National Bank (PNB) and the National Insurance Company (the insurer) under the Bangla Shasya Bima (BSB) crop‑insurance scheme for the 2019‑2020 season.
  • Nature of proceedings: Contempt applications filed by the petitioners alleging PNB’s non‑compliance with earlier court orders, and recall applications filed by the insurer seeking to set aside those orders.
  • Background: Petitioners paid premiums to PNB expecting coverage under BSB. The bank deposited premiums but failed to upload farmer particulars to the State Crop Insurance Portal, resulting in no policies being issued. The Court had earlier (Dec 18 2023 & Jan 22 2024) directed the insurer to extend premium‑deposit dates and the bank to pay arrears, effectively reviving the scheme.
  • Legal contentions: The insurer argued the Court exceeded jurisdiction by reviving an expired scheme (expired Feb 2020) and that the bank was liable for “substantial misreporting” under Clause XVII(2) of the BSB Guidelines. The bank contended technical glitches prevented data upload and that the recall applications were time‑barred.
  • Court’s analysis: The Court held that recall applications are not governed by the Limitation Act, being within the High Court’s inherent power under Article 215. It found the scheme had expired, making the revival orders ultra vires, and that the bank’s failure to furnish required particulars made it liable for misreporting. The insurer’s recall applications were timely (within three years) and therefore not time‑barred.

Final Outcome

  • The Court recalled all earlier orders disposing of the writ petitions (WPA Nos. 14180, 13397, 12836, 14182, 14184, 14190, 14194, 12855, 13388, 13403 of 2021).
  • Punjab National Bank must refund the entire premium amounts paid by each petitioner within 30 days of the judgment, with interest at 12% per annum from the date of each deposit. If payment is delayed, interest rises to 6% per annum on the principal + 12% interest from the 31st day onward.
  • Petitioners must file composite compensation claims in writing to the bank by 31 August 2026, detailing the insurance coverage loss and any financial damages.
  • The bank must evaluate these claims, possibly appoint valuers and obtain meteorological reports, and render a reasoned decision by 31 October 2026. Compensation may be adjusted against the refunded premium plus interest.
  • The bank must provide a hearing opportunity and allow production of relevant documents for each petitioner.
  • Petitioners dissatisfied with the bank’s assessment may challenge the decision before the appropriate court or forum.
  • All contempt applications (CPAN 1991‑1999, 2010, 2012 of 2024) are dismissed.
  • Any pending interlocutory applications are disposed of; no order as to costs.
  • Certified copies of the judgment to be supplied upon compliance with formalities.

Topics: Court Judgment, Agricultural Insurance, Banking Liability