Authority: Supreme Court of India

Order Date: 24-08-2026

Case Overview

  • Petitioners: State of Himachal Pradesh; Respondents: Yudh Chand Bains & others (original borrower, his son, and two bank officers).
  • The petitions (Special Leave to Appeal (Crl.) Nos.13625‑13628/2026) arise from the impugned final judgment and order dated 13‑05‑2026 in CRMPM Nos. 103/2025, 509/2025, 579/2025 & 611/2025 passed by the High Court of Himachal Pradesh, Shimla.
  • Respondent No.1 is the original borrower; Respondent No.4 is his son; Respondents Nos.2 and 3 are bank officers alleged to have participated in the fraud.
  • The Court observed that the presence of the bank is essential and directed that Kangra Central Co‑operative Bank be impleaded as Respondent No.5, with the cause title amended accordingly.
  • The Court issued a notice to the bank, returnable on 31‑08‑2026.
  • The Court queried the State counsel on the exact amount due by the original borrower with interest and the nature of the security created at loan disbursement.
  • The borrower claims security over two parcels of land valued at more than Rs.150 crore.
  • The Court ordered the bank to file an affidavit, affirmed by a responsible bank officer, stating:
  • The precise loan amount outstanding with interest.
  • Details of the security interest over the two land parcels.
  • Any SARFAESI (Section 13(2)) notices issued, to ascertain the type of security.
  • Valuation certificates issued by two government‑approved valuers for the two plots.
  • The Court also sought explanations from the bank on:
  • Departmental actions taken against Respondents Nos.2 and 3.
  • Why Respondent No.2 was allowed to retire and why Respondent No.3 remains employed despite serious fraud allegations.
  • How the Board of Directors examined and dealt with these transactions, noting that the Board members have also been issued Section 41A notices under the Code of Criminal Procedure, 1973, appeared before the Investigating Officer, and no arrests were made.
  • The affidavit must also detail how the Board sanctioned the loan over time, specifying the society’s bye‑laws and the sanctioning authority.

Final Outcome

  • The exemption application for filing C/C of the impugned judgment was allowed.
  • Kangra Central Co‑operative Bank is to be impleaded as Respondent No.5.
  • A notice to the bank was issued, returnable by 31‑08‑2026.
  • The bank must submit, by the next hearing, an affidavit covering loan amount, interest, security details, SARFAESI notices, valuation certificates, and explanations of actions against the implicated officers and Board members.

Topics: Banking Fraud, Supreme Court Order