Date – 2024-07-15

In a significant legal ruling by the Delhi High Court, Ambience Group Private Limited emerged victorious in their case against Punjab & Sind Bank (PSB). The court found that the public sector bank could not arbitrarily withdraw a sanctioned one-time settlement (OTS) after receiving full payment as per the agreed terms.

Senior Advocate Ramakrishnan Viraraghavan was quoted saying, “A nationalized bank cannot act arbitrarily or whimsically. The bank cannot deviate from the OTS sanction letter by relying on prior or subsequent negotiations or circumstances which aren’t mentioned in the sanction letter.”

This judgment reinforces the principle that financial institutions must uphold their obligations and maintain fairness in their dealings with borrowers.

Read more: ABP Live Article