Bombay High Court Directs Yes Bank Rs- 50,000 Compensation for Delay in Opening Bank Account without Aadhaar

Bombay High Court directs Yes Bank Rs- 50,000 compensation for delay in opening Bank Account without Aadhaar, despite the Supreme Court’s ruling in Justice K.S. Puttaswamy (Retd.) & Anr v. Union of India & Ors., which declared that Aadhaar cannot be made compulsory for banking services. 

The decision was issued on June 26, 2025, by a Division Bench comprising Justices M.S. Sonak and Jitendra Jain in Writ Petition No. 1706 of 2018, filed by Microfibers Pvt. Ltd. The company, based in Mumbai, had approached Yes Bank in January 2018 to open an account. However, the bank insisted on the submission of an Aadhaar card, citing internal communication dated April 24–26, 2018, even though the petitioner had referred to the Supreme Court’s interim rulings that Aadhaar should not be mandated.

Frustrated by the bank’s stance, the company filed a writ petition in June 2018. During earlier hearings, Yes Bank informed the Court that after the Supreme Court’s final verdict on September 26, 2018, it ceased requiring Aadhaar for opening accounts. This position was recorded in a High Court order dated November 29, 2018, which also admitted the plea for compensation and permitted the bank to submit a reply—though no such response was ever filed.

Eventually, the company’s account was opened in January 2019. The petitioner argued that due to this delay, it was unable to lease out its property in Mumbai for an entire year, resulting in financial losses, and sought Rs- 10 lakh as compensation. The High Court found this figure overstated but acknowledged that the bank had no legal justification for delaying the account opening after the Supreme Court’s final decision.

The Court emphasized that while it typically would have advised pursuing alternative remedies, the matter had progressed significantly and involved exceptional personal and financial considerations, including the circumstances of the company’s sole remaining director and her daughter.

Taking all factors into account, the Court instructed Yes Bank to pay Rs 50,000 to the petitioner within eight weeks from the date they receive a copy of the judgment. The case was closed with this direction, and no costs were imposed on either party.

Case title- [Microfibers Pvt Ltd Vs Yes Bank Ltd & Ors]