Topic
The Delhi High Court ruled that a bank may not seize an employee’s terminal benefits to settle loan dues unless a specific statute or contract expressly permits it, quashing SBI’s review petition. The decision safeguards retirement benefits of bank employees and clarifies limits on contractual lien in employment contracts.
The Bombay High Court has ruled that while Section 9 permits interim preservation of assets through contractual lien, it cannot be used to effect a final disposal like public auction - such remedies require a full adjudication by the arbitral tribunal. This clarifies a critical boundary for businesses relying on lien clauses to recover dues, preventing premature asset liquidation before rights are formally decided.
Bombay High Court holds that a party cannot withhold payments under a contract merely due to pending criminal proceedings without filing a formal claim for recovery.