S.V.L.MURTHY vs STATE REP.BY CBI,HYDERABAD

The Supreme Court addressed the legality of the cheque discounting facility provided by the State Bank of India under the Banking Regulation Act, 1949, specifically examining the obligations of the bank and the rights of the borrowers. The Court held that the bank's unilateral cessation of the discounting facility without proper notice constituted a breach of contract, thereby entitling the borrowers to claim damages. The judgment emphasized the necessity of adhering to procedural fairness in banking transactions, ultimately ruling in favor of the appellants.