Indian Bank vs Godhara Nagrik Coop.Credit ...

The Supreme Court addressed the issue of judicial review concerning the powers of a committee constituted under Section 35A of the Banking Regulations Act, 1949, to investigate a fraud involving bank officers and cooperative societies. The Court held that the High Court erred in directing the banks to pay amounts under Fixed Deposit Receipts (FDRs) without a conclusive determination of liability by the Committee. The Court emphasized that the Committee's findings were not definitive regarding the banks' obligations, thus staying the High Court's order pending further clarification on the liability and quantum of payments.