Indian Bank vs Godhara Nagrik Coop.Credit ...

The Supreme Court addressed the issue of liability concerning Fixed Deposit Receipts (FDRs) issued by banks, where a fraud involving bank officers and commission agents was alleged. The Court examined the applicability of Section 35A of the Banking Regulations Act, 1949, which allowed for the establishment of a Committee to investigate the matter. The Court held that the High Court's direction to pay the amounts under the FDRs to depositors was premature, as the Committee had not conclusively determined the bank's liability regarding the disputed amounts.