It noted that while banks were free under the RBI circular to determine rates on term deposits, that discretion was subject to the condition that there could be no discrimination between comparable deposits.
NatWest had produced no material to establish that the interest rate on all similarly placed fixed deposits had been reduced to 3.5 percent.
“The appellant neither before the learned Single Judge nor in the present appeal has substantiated the fact that the ROI for all the similar FDR was reduced to 3.5%,” the Court said.
The Court also found nothing to show that Hero Exports or Tiffins Barrytes had been informed that the fixed deposit had matured and required renewal.
Further, although NatWest had moved the arbitrator in 2017 seeking permission to transfer the amount to another bank because it was winding down its operations, the application did not disclose that the interest rate would be reduced.
Hence, the Court held that the single-judge’s directions suffered from no factual or legal error, and dismissed the appeal.