The Delhi High Court recently expressed disappointment with the Union Bank of India’s handling of a loan recovery suit, which had been dismissed due to the bank’s lack of effort in pursuing the case. The court criticized the bank’s “lethargic” approach, citing multiple adjournments and the failure of the bank’s law officer or manager to appear in court or keep track of the proceedings. Despite this, the court decided to restore the suit, taking into account the fact that public money was involved.

The case began when the Union Bank of India filed a suit against M/S Shabd Enterprises and another party to recover a loan. However, the trial court dismissed the suit due to the bank’s failure to serve summons on the defendants and its repeated absence from court. The bank appealed this decision, which was heard by Justice Girish Kathpalia.

Justice Kathpalia observed that the trial court’s decision to dismiss the suit was justified, given the bank’s negligence and lack of effort in pursuing the case. The court noted that there was no explanation for the bank’s inaction and that the concerned officer or manager had not appeared in court or kept track of the proceedings.

Despite this, the court decided to allow the bank’s appeal and restore the suit, but with certain conditions. The bank was ordered to pay a cost of Rs. 25,000, which would initially be deposited by the bank and then recovered from the salary of the erring officer. The court also directed the bank to conduct a detailed inquiry to fix responsibility and determine whether the negligence was a deliberate attempt to help the other side.

The court’s decision highlights the importance of accountability and diligence in the handling of public money. The judge’s remarks emphasize that the ultimate sufferer in such cases would be the exchequer, and therefore, the court must ensure that public money is protected. The case serves as a reminder to banks and other institutions to take a more proactive and responsible approach in pursuing legal cases, particularly those involving public money.