Mamuni D. v. SBI - A Critical Analysis

In this landmark case, the Supreme Court (2011) ruled that a contract of loan is not automatically void just because the borrower is insolvent. This is contrary to what most of us think - sab jante hain ki agar aap insolvency mein pad jate ho to loan kharcha hua, but kya hua? Mamuni D. v. SBI ko dekhein, Supreme Court ne isse clear kaha ki loan kharcha hua, lekin bhi borrower ko kuch bhi dena pad sakta hai. Iske peeche reason yeh hai ki loan kharcha hua to creditor apne rights se haath khadi kar sakta hai, lekin yeh koi azaadi nahin hai ki unhe kuch bhi nahi dena padega.