W.P.No.33983 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21.03.2025 CORAM : THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ W.P.No .33983 of 2019 1.M/s.ICICI Bank Limited, Erode Branch, Represented by its Branch Manager, Gandhiji Road, Erode. 2.M/s.ICICI Bank Limited, Meerut Branch, Represented by its Branch Manager, Meerut, Uttar Pradesh. .. Petitioners vs 1.Central Bank of India, Erode Branch, Erode, Represented by its Senior Manager. 2.Mr.Vinod Kumar Ghadha 3.The Registrar, Debts Recovery Appellate Tribunal, Chennai. .. Respondents __________ https://www.mhc.tn.gov.in/judis W.P.No.33983 of 2019 Prayer : Petition under Article 226 of the Constitution of India seeking issuance of a writ of Certiorarified Mandamus, calling for the records of the impugned order dated 24.01.2018 in R.A.No.54 of 2015 on the file of respondent No.3 and quash the portion of the order directing the petitioners to pay 50% of the drafts alone to respondent No.1 and allow the appeal filed by petitioners to quash impugned order dated 27.05.2015 passed in OA.No.116 of 2008, on the file of the Debts Recovery Tribunal, Madurai, and pass orders. For Petitioners : Mr.Smayavaramban for M/s.Ramalingam and Associates For Respondents : R1 and R2 -No appearance R3- Tribunal ORDER (Order of the Court was made by the Hon'ble Chief Justice) The Central Bank of India is not present though served; so also respondent No.2. 2. Appellants are aggrieved by an order dated 24.01.2018 passed by the Debt Recovery Appellate Tribunal (DRAT). __________ https://www.mhc.tn.gov.in/judis W.P.No.33983 of 2019 3. Respondent No.2 is an account holder with appellant ICICI Bank Limited at its Meerut Road branch. Respondent No.2 had deposited two demand drafts for Rs.3,96,000/- and Rs.3,98,000/- respectively. These demand drafts were purportedly issued by respondent No.1, the Central Bank of India, Erode branch, Tamil Nadu. ICICI Bank Limited forwarded these demand drafts to the Central Bank of India for payment. The Central Bank of India cleared the demand drafts and paid the amount to ICICI Bank Limited. ICICI Bank Limited in turn credited the same into the savings account of respondent No.2. 4. It later came to light that both the demand drafts were fake demand drafts. Therefore, the Central Bank of India called upon ICICI Bank Limited to return the money of Rs.3,96,000/- and Rs.3,98,000/-. ICICI Bank Limited declined to pay, and hence, an original application was filed before the Debts Recovery Tribunal (DRT). The DRT held in favour of the Central Bank of India, by an order dated 27.05.2015. It was that order that is challenged before the Debt Recovery Appellate Tribunal (DRAT). The DRAT, by the impugned order held that both banks were contributorily liable and apportioned the demand drafts amount equally between ICICI __________ https://www.mhc.tn.gov.in/judis W.P.No.33983 of 2019 Bank Limited and the Central Bank of India. 5. The reason why DRAT felt ICICI bank was equally liable was because respondent No.2 was a dishonest person, who, using a fake identity card, had opened a bank account with ICICI Bank Limited. But for ICICI Bank Limited permitting respondent No.2 to open the account, this fraud would not have happened. 6. We disagree with the findings of the DRAT because even assuming for the sake of argument, ICICI Bank Limited was negligent in allowing the bank account to be opened, still that was not the cause for loss allegedly suffered by the Central Bank of India. If the demand drafts were both fake and the Central Bank of India had not issued those demand drafts, they should have right at the beginning not cleared those demand drafts. Therefore, the fault will lie entirely at the door step of the Central Bank of India. __________ https://www.mhc.tn.gov.in/judis W.P.No.33983 of 2019 7. In the circumstances, the impugned order is quashed and set aside. We should also clarify that we have not gone into the issue as to whether the original application itself was maintainable. 8. Petition is disposed of. There shall be no order as to costs. (K.R.SHRIRAM, C.J.) (MOHAMMED SHAFFIQ,J.) 21.03.2025 Index : Yes/No NC : Yes/No mrn To: 1. The Senior Manager. The Central Bank of India, Erode Branch, Erode, 2. The Debts Recovery Tribunal, Madurai. 3.The Registrar, Debts Recovery Appellate Tribunal, Chennai. __________ https://www.mhc.tn.gov.in/judis W.P.No.33983 of 2019 THE HON'BLE CHIEF JUSTICE AND MOHAMMED SHAFFIQ ,J. (mrn) W.P.No .33983 of 2019 21.03.2025 __________ https://www.mhc.tn.gov.in/judis