HONGKONG & SHANGHAI BANKING CORPN. LTD. vs CANBANK FINANCIAL SERVICES LTD.

The Supreme Court upheld the decree of the Special Court, affirming that the Hongkong & Shanghai Banking Corporation Ltd. was liable to pay Canbank Financial Services Ltd. the amount of Rs. 18,59,71,808.22 along with interest at 15%. The Court found that the adjustment of the payment made by the plaintiff towards an unrelated transaction with Canbank Mutual Fund was unauthorized. The judgment emphasized the necessity of honoring contractual obligations as per the terms agreed upon, thereby reinforcing principles of contract law.