State Bank Of India vs New India Assurance Co. Ltd

The Supreme Court held that the National Consumer Disputes Redressal Commission (NCDRC) erred in making the State Bank of India liable for the borrower's claim after the State Consumer Disputes Redressal Commission (SCDRC) had only directed the Bank to forward the claim to the insurer without imposing any liability. The Court emphasized that the borrower had accepted the SCDRC's order and had issued a 'No Dues' Certificate, indicating no valid basis for the NCDRC's decision. The appeal was allowed, setting aside the NCDRC's order, reaffirming the SCDRC's ruling that did not hold the Bank liable.