Bank Cannot Ignore Customer Instructions, Exporter Held Liable, Recovery Allowed for Mistaken Remittance: Supreme Court
The Supreme Court of India on 19 March 2026 delivered a significant judgment resolving a long-standing commercial dispute involving a foreign ship repair company, an Indian exporter, and a bank. The Court upheld the liability of the exporter under a corporate guarantee and also held the bank responsible for wrongly transferring funds. The bench comprising Justice R. Mahadevan and Justice J.B. Pardiwala clarified key principles under the Indian Contract Act…
