Delhi High Court Slams UCO Bank for Contempt of Court: Orders Immediate Action on Release of Funds

In a scathing verdict, the Delhi High Court has reprimanded UCO Bank for its deliberate violation and non-compliance of a court order, directing the immediate release of funds from the bank accounts of the deceased as per his will. The judgment, delivered by HON’BLE MR. JUSTICE DHARMESH SHARMA on December 7, 2023, underscores the importance of upholding court directives.

The court's observations on this matter were crystal clear, with Justice Sharma stating, “The concerned official of the Bank is guilty of committing civil contempt of the directions of this Court dated 01.11.2019.”

The case revolved around a contempt petition filed by the ex-daughter-in-law of the deceased testator, who sought the release of funds as per the deceased’s will. The court had previously issued directions on November 1, 2019, for the release of funds, but UCO Bank had subsequently imposed a lien on the released funds.

The petitioner alleged wilful disobedience of the court's directions by bank officials, causing significant hindrance in executing the deceased’s will. The court took a stern stance, issuing a show cause notice to the concerned Chief Manager of UCO Bank, directing them to appear in person and justify their non-compliance.

Furthermore, Justice Sharma emphasized, “The act committed by the concerned official of the Bank amounts to manifestly impeding the course of administration of justice and thereby attempting to wriggle out of the directions passed by this Court.”

In a significant move, the court ordered UCO Bank to release or vacate the lien on the funds and allow the executor, the petitioner, to operate the bank account according to the wishes of the deceased testator. The bank was given a deadline to comply with this directive.

Date of Decision: December 07, 2023

MAHALAKSHMI VS PAVANI UCO BANK  & ANR