India, April 11 -- The Bombay high court on Wednesday rapped a nationalised bank for initiating recovery proceedings against a senior citizen and a super senior citizen after executing no dues certificates and release deeds for mortgaged property. The bank's action was "gross and shocking", the court said, directing the appellate tribunal to decide the matter on its merits.

The court was hearing a plea by Urmiladevi Jain, 62, and Pannalal Jain, 97 - partners in Vardhaman Enterprises who owned a 40% stake in the firm. The duo claimed that the bank had ordered recovery of Rs.2.40 crore from them for sale of properties under mortgage although they had paid Rs.1.6 crore to settle their debt. The bank had even issued a no dues certificate and...