M/S. DURGA HOTEL COMPLEX vs RESERVE BANK OF INDIA

The Supreme Court held that the Banking Ombudsman has jurisdiction to entertain complaints under the Banking Ombudsman Scheme, 1995, even when there are pending proceedings before the Debts Recovery Tribunal as per the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The Court emphasized that the jurisdiction of the Ombudsman is not limited by the existence of other legal proceedings. The appeal was allowed, affirming the Ombudsman's authority to adjudicate the complaint regarding unauthorized withdrawal and non-credit of loan proceeds.