Case Analysis, Deepanshu, 2022

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Case Analysis on

Vandana Tyagi v. GNCTD, WP (C) 1103 of 2019 (India).

Submitted to

Dr. Amit Dhall

Submited by

Deepanshu Gurnani

Enrollment No. A3268622022

Programme : LL.M. (Master of Laws)

Subject Name : Banking Law


Case No. 2: Vandana Tyagi v. GNCTD, WP (C) 1103 of 2019
(India).

Introduction:

The area of law that is in focus is the directions of the Reserve Bank of India
(hereinafter referred to as “RBI”) in respect to the operation of Bank Accounts by the
Old/Sick/Incapacitated customers.

Facts and Issue:

The petitioner is the only son to his deceased father who made a will exclusively in the
name of his wife who was now in the state of comatose. The petitioner requested the bank
to operate his father’s Public Provident Fund. The State Bank of India directed the
petitioner to obtain ‘guardianship certificate” to operate the PPF Account maintained with
it. Thus, the petition was initiated.

Applicable Provisions:

• The National Trust Act for the Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities Act, 1999
• The Mental Health Act, 1987 (repealed)
• Clause 5.7 of the Master Circular on Maintenance of Deposit Accounts, issued by
RBI
-“Operation of Bank Accounts by Old/Sick/Incapacitated Customers”.

Analysis and Review:

The argument accepted by the court which states that a person can be allowed to manage
the account of another who is in a state of absolute helplessness rightly puts forth the
practical issues that customers may face when placed in such situations.
The stance of SBI was that a guardianship certificate had to be obtained from the
concerned district court under the now repealed 1987 Act or from a Local Level
Committee. The decision of the Court was primarily that the contention of the respondent
Bank to base the permission to operate on the guardianship certificate under a law which is
repealed, does not stand good under law.
Out of the extensive guidelines laid down by the court, few include, that the court will have
the person lying in comatose examined by a duly constituted medical board, the court may
direct the Tehsildar to examine and investigate the true nature of the persons involved, the
person seeking appointment as a guardian in his petition to the court will disclose the
relationship and particulars of all legal heirs of the person lying in comatose.
This decision follows the trend of the Courts advocating for the rights of the helpless
customers tangled in Red Tape in many other cases such as the case of Shobha
Gopalakrishnan v. State of Kerala2 by the High Court of Kerala and K. Sailaja v. The State
of Tamil Nadu3 by the High Court of Tamil Nadu. Following the same trend in
interpretation, this decision by the Delhi High Court was reiterated in the case of Bhim
Singh v. AGM State Bank of India4.

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