In a significant ruling addressing arbitrary banking recoveries, the High Court of Judicature at Allahabad (Lucknow Bench) held that a bank cannot unilaterally liquidate and debit a wife’s independent fixed deposit to recover the outstanding personal loan dues of her deceased husband without privity of contract or due process of law. A Division Bench comprising
Bank Cannot Unilaterally Debit Wife’s Fixed Deposit to Recover Deceased Husband’s Personal Loan: Allahabad High Court
