Archive · 3 Dec 2025
J&K HC Rules Bank Liability Ends After Payment to Survivor
The J&K and Ladakh High Court has decided that once a bank pays the money from a joint account with an 'either or survivor' rule to the person who is still alive, the bank is no longer responsible.
The court said that any arguments about who should get the money are between the living account holder and the family of the person who passed away.
The bank cannot be blamed for following the rules of the account.
Other courts in India, like the Madras High Court, have also said similar things.
The court made this decision when they were looking at a case where a man named Mir Usman Disooki had a problem with the bank and another account holder named Shabeena Ibrahim.
J&K High Court ruled that a bank's liability ends after paying the balance of a joint 'either or survivor' account to the surviving holder.
Justice Sanjay Dhar stated that disputes over the funds are civil matters between the survivor and the deceased's heirs, not the bank's responsibility.
The court supported its decision with previous rulings, including a 2005 case from the Madras High Court.
The ruling was made in response to a criminal complaint by Mir Usman Disooki against Shabeena Ibrahim and HSBC.
The bank's obligation is to release funds to the surviving account holder as per the 'either or survivor' mandate.
- Who
- J&K and Ladakh High Court, Justice Sanjay Dhar, Shabeena Ibrahim, HSBC, Mir Usman Disooki
- What
- Ruling on bank's liability in joint account with 'either or survivor' mandate
- When
- Wednesday (date not specified)
- Where
- Srinagar, Jammu and Kashmir
- Why
- To determine the bank's liability after paying the balance to the surviving account holder
- Court
- J&K and Ladakh High Court
- Judge
- Justice Sanjay Dhar
- Account Type
- Joint account with 'either or survivor' mandate
- Bank's Liability
- Ends after payment to surviving account holder
- Legal Precedent
- Supported by Madras High Court ruling in 2005
- Parties Involved
- Shabeena Ibrahim, HSBC, Mir Usman Disooki
- Nature of Dispute
- Criminal complaint against bank and account holder
- Bank's Obligation
- To release funds to surviving account holder as per mandate