JAMMU & KASHMIR BANK LTD. vs ATTAR-UL-NISSA & OTHERS

The Supreme Court held that Section 72 of the Indian Contract Act, 1872, does not apply when money is paid to a bank for crediting a third party's account without that party's consent. The Court ruled that the State Government acted as an agent for the borrower, and the funds credited to the borrower's account became his property. Therefore, the bank could not reverse the credit entries without the borrower's consent, affirming the High Court's decision against the bank's claim for recovery.