Delhi High Court Dismisses Contempt Plea Against Punjab National Bank Amidst Trustee Dispute
The High Court of Delhi has cleared Punjab National Bank (PNB) of allegations of “wilful disobedience,” disposing of a contempt petition filed by the Ch. Aishi Ram Batra Public Charitable Trust. The ruling, delivered by Justice Mini Pushkarna on Aug 12, 2026, centers on a complex disagreement over how bank accounts for Batra Hospital should be managed following a contentious board resolution.
A Mandate in Dispute
The legal friction began with a court order dated May 29, 2026, which directed banks to comply with the Governing Body’s meeting minutes from Dec 2025. The Trust argued this mandate was clear: cheques must be signed by two members from “Group A” and one from “Group B,” as outlined in their Board Resolution and KYC forms.
However, a Respondent, Jai Batra, offered a sharply different interpretation. He maintained that the May order required the signatures of three specific individuals: President Hemant Batra, himself, and Trustee Sushil Kumar Batra. In June 2026, Jai Batra instructed PNB to withhold payments that did not bear his signature, citing the same court order the Trust claimed was being violated.
No Culpability for “Conflicting Instructions”
Justice Pushkarna observed that PNB found itself caught between divergent legal interpretations from the opposing parties. The court noted a critical discrepancy: while the meeting minutes listed specific representatives, the bank’s KYC form did not include those exact terms, contributing to the operational confusion.
“The respondent-PNB, in receipt of letters from both the sides, cannot be faulted for its action,” the Court stated, concluding that no “wilful disobedience” occurred while the underlying mandate remained subject to legal debate.
Shift to the Roster Bench
The dispute was further complicated by a Vacation Bench order on Jun 10, 2026, which had directed PNB to resume normal operations using a broader signatory mandate (any two from Group A and the Finance Controller from Group B).
The High Court has now ruled that the final word on these conflicting interpretations must come from the Roster Bench, where the main suit is pending.
Case Status
- Petition Outcome: The contempt petition and all related applications are disposed of.
- Interim Orders: All previous interim directions are now merged into this final order.
- Next Hearing: The hearing previously set for Sep 11, 2026, has been cancelled.
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