The Supreme Court has upheld an order of the Special Court, trying security scam cases, decreeing the suit of Standard Chartered Bank (Stanchart) for a sum of Rs 6.06 billion against Canara Bank. A Bench comprising Justice B N Kirpal, Justice N Santosh Hegde and Justice Ashok Bhan in its recent order said "in our opinion the Special Court, after taking into consideration the pleadings and the evidence on the record, was right in decreeing the suit of the respondent (Standard Charter Bank)." According to the decree, the Special Court had found that a sum of Rs 60,64,71,275.12 was payable by Canara Bank to Stanchart.
The trial court had also held that Canara Bank was liable to pay interest at the rate of 20 per cent per annum from November 25, 1991, till the payment of the decretal amount. The Court was informed that the decretal amount including the costs have been paid to Stanchart. Stanchart had filed a suit against Canara bank saying that it had purchased securities of the face value of Rs 60 crores from the latter in 1991. However, Stanchart received securities worth only Rs 16.1 million. It later filed a suit for recovery of the sum.
Writing the judgement for the apex Court Bench, Justice Kirpal said "In our opinion, the decision of the Special Court calls for no interference. Bureau Report