Archive · 18 Sep 2026
Allahabad High Court Orders SBI Refund Widow’s Debited FD
Neha Mishra’s husband borrowed money from SBI before he died.
Neha was not listed as a borrower or guarantor for that loan.
SBI later asked her to pay the remaining loan amount.
The bank temporarily stopped her from using her salary account.
It then moved and encashed her fixed deposit, taking about ₹19.90 lakh.
The court said SBI had not shown a legal reason to take money directly from her account.
SBI may be able to seek money from her as a legal heir, but it must use proper legal procedures.
The court ordered SBI to return the money with interest and pay her ₹1 lakh.
The Allahabad High Court ordered SBI to immediately refund ₹19.90 lakh debited from Neha Mishra’s fixed deposit.
Mishra was not a co-borrower, guarantor, surety, indemnifier, nominee or signatory to her husband’s loan.
Her husband took a ₹15 lakh SBI personal loan in November 2020 and died in May 2021.
SBI demanded ₹13.87 lakh in September 2025, placed her salary account on hold and later encashed her fixed deposit.
The court ordered repayment with FD-rate interest and ₹1 lakh compensation, saying recovery must follow due process.
- Who
- The Allahabad High Court, State Bank of India and Neha Mishra, whose deceased husband had taken the loan.
- What
- The court ordered SBI to refund ₹19.90 lakh taken from Mishra’s fixed deposit and pay ₹1 lakh in compensation.
- When
- The order was reported on September 17; one report identified the court order as dated September 10. The loan was taken in November 2020, and Mishra’s husband died in May 2021.
- Where
- The case was heard by the Allahabad High Court’s Lucknow bench. The accounts involved SBI branches in Ashiyana and Jankipuram, Lucknow.
- Why
- The court found that Mishra was not a party to the loan agreement and that SBI had not established a legal basis for directly debiting her fixed deposit.
Court and Widow’s Position
SBI’s Recovery Position
Direct debit from the fixed deposit
Court and Widow’s Position
The court said Mishra had no contractual relationship with SBI concerning the loan and that the bank had not shown a legal provision allowing it to debit her account directly.
SBI’s Recovery Position
SBI transferred the fixed deposit to the Jankipuram branch, encashed it and debited the claimed dues while recovery discussions were underway.
Recovery from the deceased borrower’s family
Court and Widow’s Position
The court said SBI could proceed against Mishra as a legal heir only if legally entitled and only through due process of law.
SBI’s Recovery Position
SBI issued a notice demanding ₹13.87 lakh and argued that standing instructions provided by the husband permitted recovery from assets such as gratuity.
Conduct of the recovery process
Court and Widow’s Position
The court described the account transfers and debit as surreptitious, arbitrary and an abominable breach of banking practice.
SBI’s Recovery Position
SBI’s reported actions included holding Mishra’s salary account and encashing her fixed deposit; the reports do not provide a separate response from the bank to the court’s criticism.
- Refund ordered
- ₹19.90 lakh; one report specified the amount as ₹19,90,693
- Compensation
- ₹1 lakh in exemplary and punitive compensation
- Original loan
- ₹15 lakh personal loan taken in November 2020
- Outstanding demand
- ₹13.87 lakh, plus interest, according to SBI’s September 2025 notice
- Insurance premium
- ₹8,803 reportedly paid for insurance covering the loan
- Repayment deadline
- Within four weeks
- Interest on refund
- At the fixed-deposit rate received by Mishra
Sources
Allahabad HC asks SBI to ‘immediately’ refund Rs 19.90 lakh debited from widow’s FD
Allahabad HC asks SBI to 'immediately' refund ₹19.90 lakh debited from widow's FD
SBI encashes widow’s FD to recover husband’s loan, Allahabad High Court orders refund
