Legal News for April 2026
Axis Bank directed to pay Rs. 3.2 crore over demonetisation deposit refusal
The National Consumer Disputes Redressal Commission has ordered Axis Bank to compensate a Delhi-based firm after it refused to accept Rs. 3.2 crore in cash deposits during demonetisation.
The Commission ruled that the bank’s unilateral decision to classify the company as high-risk and deny deposits in a KYC-compliant account violated government and RBI guidelines. It held that even in case of suspicion, the bank should have accepted the deposit and reported it for investigation.
As a result, the firm suffered an “irreversible loss” when the currency became invalid. The bank has been directed to pay the amount along with 6% interest.
Maternity leave cannot be treated as service break: Bombay HC
The Nagpur Bench of the Bombay High Court has ruled that maternity leave cannot be considered a break in service or grounds for penal action under employment bonds.
The court observed that maternity leave is a fundamental right linked to reproductive freedom under Article 21 of the Constitution. It held that contractual obligations, such as compulsory service bonds, cannot override this right.
The ruling came in a case involving a medical professional who was penalised for not completing her bond period due to maternity leave. The court directed that such leave must be counted as part of service tenure, reinforcing protections for working women.
SC allows parallel insolvency proceedings against debtor and guarantor
The Supreme Court of India has ruled that creditors can initiate simultaneous insolvency proceedings against both a principal borrower and its corporate guarantor.
The court clarified that there is no restriction under the Insolvency and Bankruptcy Code (IBC) on parallel Corporate Insolvency Resolution Processes (CIRP) for the same debt.
It reaffirmed the principle that a guarantor’s liability is co-extensive with that of the borrower, enabling creditors to pursue all available legal remedies. The ruling strengthens lenders’ rights and could improve recovery mechanisms in stressed asset cases.
Bank penalised for wrongful credit card dues and delayed closure
A consumer court in Bengaluru has penalised Standard Chartered Bank for wrongful recovery actions related to a closed credit card account.
Despite the customer clearing dues and receiving confirmation of closure, the bank later issued notices demanding over Rs. 33 lakh and engaged recovery agents. The court found the bank guilty of deficiency in service and unfair trade practices, noting that its actions adversely affected the customer’s credit score.
The court awarded Rs. 1 lakh as compensation with interest, along with litigation costs, highlighting accountability in customer grievance handling.
