CNN Central News & Network-ITDC India Epress/ITDC News Bhopal: The Lucknow Bench of the Allahabad High Court has ordered the State Bank of India (SBI) to return, with interest, Rs 19.90 lakh withdrawn from a widow’s fixed deposit. The court also directed the bank to pay Rs 1 lakh as compensation to the woman. The matter is linked to a petition filed by Neha Mishra, whose late husband had taken a personal loan of Rs 15 lakh from SBI.
Neha Mishra’s husband was an assistant professor at a hospital in Lucknow. He had taken the personal loan from SBI in November 2020 and died during Covid-19 in May 2021. According to the court, Neha Mishra was not a co-borrower, guarantor, surety or nominee for the loan. In addition, the loan was covered under insurance, for which a premium of Rs 8,803 had been paid.
In September 2025, the bank sent the woman a notice seeking recovery of an outstanding loan amount of around Rs 13.87 lakh. Later, her salary account was also blocked, and it was restored after the intervention of the RBI Ombudsman. During this period, SBI encashed the woman’s FD, opened in 2025, and credited Rs 19,90,693 to the loan account.
A bench of Justice Shekhar B. Saraf and Justice Awadhesh Kumar Chaudhary made strong observations on the bank’s action. The court said the bank could not directly withdraw the amount of her husband’s loan in this manner from the woman’s independent FD. Although the bank may seek recovery from the legal heir of the deceased in accordance with law, it must follow the proper legal process for doing so.
The court ordered SBI to return Rs 19,90,693 within four weeks, along with interest at the rate applicable to the FD, and to pay Rs 1 lakh as compensation to the woman.
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