Authority: Supreme Court of India
Order Date: 11 August 2026
Case Overview
- Petition for Special Leave to Appeal (C) No. 38368/2025 filed by M.K. Nassarudeen Musaliar against State Bank of India & others, arising from the impugned final judgment and order dated 05‑11‑2025 in IA No. 1/2025 passed by the High Court of Kerala, Ernakulam.
- The Bank had earlier deposited an amount of Rs 7.18 crore in the High Court on 23‑07‑2024. The amount was withdrawn by the Bank on 07‑01‑2026, accruing interest up to the withdrawal date.
- The petition sought relief concerning the handling of this amount and related pending matters.
Court Observations & Directions
1. The Court directed that the Bank must re‑deposit the Rs 7.18 crore, together with interest accrued up to 07‑01‑2026, into an interest‑bearing Fixed Deposit within three weeks from the date of the order.
2. The Fixed Deposit shall remain in force until all pending cases involving the parties are fully disposed of.
3. The Court instructed the Chief Judicial Magistrate, Thiruvananthapuram, to take up and dispose of the Section 14 Petition as expeditiously as possible.
4. Interest accrued on the amount, calculated from 23‑07‑2024, shall be payable to the Auction Purchaser, subject to any standard deductions.
5. The Court requested the High Court to take up and dispose of Writ Petition (C) No. 16568 of 2026 promptly.
6. The Special Leave Petition is hereby disposed of.
7. Any pending interlocutory applications, if any, are also disposed of.
Final Outcome
- The Special Leave Petition is dismissed.
- State Bank of India must place Rs 7.18 crore plus accrued interest into a Fixed Deposit within three weeks, with the deposit remaining until all related litigation is concluded.
- Interest earned will be credited to the Auction Purchaser after standard deductions.
- The Chief Judicial Magistrate and the High Court are directed to expedite the pending Section 14 and Writ Petition (C) No. 16568/2026 respectively.
Topics: Banking, Court Order, Litigation