New Delhi, September 30, 2026 (Yes Punjab News)
The Delhi High Court has directed ICICI Bank to reverse a payment of Rs 3,89,981 mistakenly transferred by a wholesale firm to an unintended beneficiary, after the recipient failed to produce documents supporting its claim that the money had been correctly credited to it.
Justice Jasmeet Singh, hearing a petition filed by M/s MK Wholesale, ordered the reversal of the transaction made on November 23, 2023, after examining the circumstances surrounding the mistaken transfer and the subsequent proceedings.
The petitioner had approached the court seeking the return of the amount, which was originally intended for M/s V.K. Enterprises but was inadvertently transferred to M/s V.K. Traders.
Advocate Ujwal Ghai, appearing for MK Wholesale, submitted that the transaction resulted from a bona fide mistake. The firm immediately contacted the unintended recipient and requested the amount to be returned. It also informed its own bank, which subsequently approached ICICI Bank to initiate the reversal process.
As the payment remained unreversed, MK Wholesale moved the Delhi High Court for relief.
During the proceedings, ICICI Bank informed the court that M/s V.K. Traders had maintained that the payment was correctly made to it when the bank sought clarification regarding the transaction.
The High Court noted that M/s V.K. Traders had been given an opportunity on July 18, 2024, to submit documents substantiating its claim. However, the recipient neither filed the required documents nor appeared before the court despite the passage of more than two years.
“Despite more than 2 years neither any document has been filed by respondent No. 4 nor is anybody appearing on behalf of it,” Justice Singh observed.
The court also considered an indemnity bond dated November 24, 2023, issued by the petitioner’s bank in favour of ICICI Bank. Through the bond, the petitioner’s bank had undertaken to indemnify ICICI Bank against any liability, loss or damage arising from reversing the disputed payment.
“The said indemnity bond shows the genuineness of the claim of the petitioner as well as the support of respondent No. 2,” the court observed.
Taking these circumstances into account, the High Court directed ICICI Bank to reverse the transaction dated November 23, 2023, bearing UTR No. IDIBR52023112336321946, for Rs 3,89,981.
The court further clarified that the petitioner and its bank would remain bound by their undertaking and would bear the consequences if the amount was found to have been wrongly reversed.
MK Wholesale had also sought interest on the disputed amount. However, the High Court declined to grant the request, observing that the mistake had occurred inadvertently on the petitioner’s part and that no fault could be attributed to the respondents.
The court’s order thus provides for the reversal of the mistaken payment without awarding interest on the amount.
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