Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Bank/Banking - International Banking - Transfer of funds relating to export-import transaction |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Bank/Banking - International Banking - Transfer of funds relating to export-import transaction - Reversal of account C entry - Challenge to 1 Appe/lant-exporter used to bank with State Bank of India's Overseas Branch - Appellant used to export the goods directly and submit documents to_Siate Bank of India and it was for the bank to claim payment - Credit entry made to appellant-exporter's EEFC account in 2006 - Two D and half years later, the State Bank of India, Overseas Branch, Mumbai debited amount from EEFC account of appel/ant- exporter on ground that it was wrongly deposited in the account of appellant by mistake - Justification - Held: On facts, not justified - In view of s. 72 of the Contract Act, the Bank does E have a right to recover the money paid under a mistake - In the instant case, however, the importer had already made the payment and SB/, Foreign Department had received the amount in the Nostro account with remittance advice to Bank of India, instead of SB/, Overseas Branch, Mumbai - F Appellant was also informed of the export collection advice by the SB/ and the appellant had received the amount - The Bank might have. committed a mistake, but now it would/be impossible tor the appellant to recover the amount from the ยท importer since, so far as the importer is concerned, it had already paid the amount - If SB/, Overseas Branch had not G given credit of the amount, then, appellant could have proceeded against the importer at the earliest opportunity - For mistake committed by the Bank, the appellant should not be made to suffer - Contract Act, 1872 - s. 72. Bank/Banking ~ International Banking - Funds transfer - Transfer of payment messages - SWIFT Message - Nostro and Vostro accounts - Discussed. |
Judge | Hon'ble Mr. Justice K.S. Panicker Radhakrishnan |
Neutral Citation | 2014 INSC 964 |
Petitioner | Metro Exporters Pvt. Ltd. And Another |
Respondent | State Bank Of India & Ors. |
SCR | [2014] 9 S.C.R. 64 |
Judgement Date | 2014-04-23 |
Case Number | 4807 |
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