Court Enforces Depositors’ Compromise, Directing Bank to Transfer Agreed Amounts by Deadline.

The petitioners, depositors or representatives of depositors, sought payment of their deposits and interest from Respondent No. 3, a bank under liquidation.

They also sought information on the bank’s current stock position and relied on an earlier direction made in W.P. No. 17026 of 2014.

After the bank’s accounts were audited and the audit report verified by the Co-operative Department, the bank filed a statement dated 22 June 2026 setting out the petitioners’ deposits and interest.

The parties subsequently filed a compromise petition recording their agreement on the interest calculations and requesting transfer of the amounts to the petitioners’ designated accounts.

1. Whether the compromise between the petitioners and Respondent No. 3 should be accepted and the bank directed to pay the agreed amounts.

2. Whether Respondent No. 3 should be directed to transfer the amounts due to each petitioner to the bank account specified in the compromise petition by a stipulated date.

The petition was brought under Articles 226 and 227 of the Constitution of India.

The parties presented their settlement through an application under Order XXIII Rule 3 of the Code of Civil Procedure, 1908, which provides for recording a lawful compromise in a proceeding.

The order cites no precedent and lays down no separate substantive rule on deposit interest; the Court proceeded on the compromise placed before it and the parties’ confirmation that it was voluntary.

The Court noted that the compromise petition was signed by the petitioners and recorded that those appearing before it confirmed they had agreed freely, without coercion or undue influence.

The bank’s in-charge manager confirmed that payment would be made within the period stated to the Court.

On that basis, the Court accepted the compromise and made its terms the basis for disposing of the petition, rather than determining the disputed interest entitlement independently.

It directed Respondent No. 3 to transfer the amounts due to each petitioner to the respective bank account specified in the compromise petition on or before 5 October 2026.