The Delhi High Court has directed ICICI Bank to reverse a payment of Rs 3,89,981 that a wholesale firm mistakenly transferred to the wrong beneficiary. The transaction took place on November 23, 2023, and the dispute reached the High Court after the money was not returned. The petitioner, M/s MK Wholesale, said the money was intended to be paid to M/s V.K. Enterprises for goods purchased from the firm. However, due to an inadvertent error while making the bank transfer, the amount was credited to M/s V.K. Traders, which had a similar name. Why did the wholesale firm approach the Delhi High Court?After discovering the mistake, MK Wholesale contacted V.K. Traders and requested that the money be returned. The petitioner also informed its bank, Indian Bank, which approached ICICI Bank because the recipient's account was maintained with ICICI Bank. Indian Bank also furnished an indemnity bond to ICICI Bank, undertaking to cover any liability, loss or damage arising from reversal of the payment. The amount was subsequently kept under lien while the issue remained unresolved. What did V.K. Traders claim about the payment?During the proceedings, ICICI Bank told the court that when it sought clarification from V.K. Traders, the recipient firm claimed that the payment had actually been made to it correctly.However, Justice Jasmeet Singh noted that V.K. Traders had been given an opportunity on July 18, 2024, to provide documents supporting its claim. The court recorded that more than two years had passed, but the firm had neither submitted the required documents nor appeared before the court.What did the Delhi High Court order?The High Court allowed the petition filed by M/s MK Wholesale and directed ICICI Bank to reverse the transaction of Rs 3,89,981. The court also took note of the indemnity bond provided by Indian Bank and observed that it supported the genuineness of the petitioner's claim. The petitioner had also requested interest on the amount. The court, however, declined to award interest, noting that there was no fault attributable to the respondents and that the original transaction resulted from an inadvertent mistake by the petitioner.The order means that ICICI Bank has been directed to reverse the November 23, 2023 transaction, subject to the undertaking given by the petitioner and its bank. The case is titled M/s MK Wholesale v. ICICI Bank Ltd. & Ors., W.P.(C) 1128/2024.
