Western Refrigeration (Private) Limited vs. State Bank of India – SC APPEAL 11/2016-2017

In the case between Western Refrigeration (Private) Limited and State Bank of India, the court addressed the issue of whether the High Court Judge had properly exercised discretion under Section 416 of the Civil Procedure Code in ordering security for costs. It was held that the High Court’s order directing a significant deposit as security exceeded statutory limits and failed to consider the proportionality and reasonableness mandated by law. The principle reaffirmed is that the discretion to order security for costs must be exercised judiciously, without being oppressive, and within the statutory maxima prescribed by Sections 416, 417A, and 214. The decision relied on statutory interpretation and relevant case law, clarifying that orders for security must reflect both fairness to parties