Bank Cannot Backout From OTS Offer After It Is Accepted By Borrower: Madhya Pradesh High Court

The Madhya Pradesh High Court recently held that a Bank cannot backout from implementing the One Time Settlement (OTS) offer it had proposed, after it was accepted by the borrower.Calling such an action by the Bank as arbitrary and unreasonable, Justice Sanjay Dwivedi observed-In the case at hand, the petitioner being a guarantor had mortgaged his personal property and after much haggling happened between the parties, the offer made by the respondent-Bank was accepted by the petitioner and...

Sanction Of Resolution Plan U/S 31 IBC Does Not Discharge Liability Of Guarantor Towards Loan Agreement: Delhi High Court

The Delhi High Court has recently reiterated that where proceedings are initiated under the SARFAESI Act and the borrower is aggrieved by any of the actions of the bank for which it has remedy under the Act, no writ petition should be entertained.Justice Sanjeev Narula further observed that the extent of liability of a personal guarantor would have to be determined in light of the agreement between the borrower, i.e., the corporate debtor and the personal guarantor, for which the appropriate...

Kotak's Ex - GC Joins Chandhiok & Mahajan To Enhance Banking, Finance And Corporate Governance Practice

New Delhi, Delhi: Chandhiok & Mahajan has welcomed this year with the hiring of Bhargesh Ojha as a Senior Advisor in the Banking, Finance, and Corporate Governance practice.Ranked as Top 100 GC's by Legal500 in India, Bhargesh brings with him an unmatchable experience of three decades in the banking and finance sector. Before joining C&M, Bhargesh has been independently consulting financial and non-financial institutions on risk analysis, corporate laws, BFSI regulations, real...

Banning Or Regulating Cryptocurrency-Where Is India headed?

The cryptocurrency players eagerly waiting and hoping to see a positive decision from the Government of India that could allow investing and trading in cryptocurrencies with some restrictions, might have to wait a bit longer. 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' scheduled to be tabled this winter session in the Parliament, could not see the light of the day. The bill was created with the mindset to create a facilitative framework for creation of...

Mere Pasting Of Circular For Interest Rate Reduction By Bank On Its Notice Board Does Not Mean It Is Communicated To Customers: Karnataka High Court

The Karnataka High Court on Thursday dismissed an appeal filed by Canara Bank (E-Syndicate Bank) challenging an order of the Single judge by which it was directed to grant benefit of reduction of interest rate on Home loan to a customer from the date of issuance of the circular for reduction, instead of when the customer applied for seeking reduction. A division bench of Chief Justice Ritu Raj Awasthi and Justice Suraj Govindaraj was informed by the bank that the circular dated June ...

Company Entitled To Acquire Properties Dehors Cancellation Of Its Registration As NBFC: Kerala High Court

The Kerala High Court recently ruled that even when an entity is stripped of its NBFC license, it continues to operate as a company and a legal person as long as its Certificate of Registration is not cancelled under the Companies Act.Justice Bechu Kurian Thomas thus ruled that such a company, despite cancellation of its registration as an NBFC, is entitled to buy, own and hold properties and continue its legal existence.Allowing the plea of one such company, whose registration as NBFC was...

External Commercial Borrowings: A Brief Analysis Of The New Framework

As part of development tactics, India has always encouraged all kinds of capital inflow. So, what is ECB? Extra Commercial Borrowings are in simple terms, a type of loan which is generally availed by an Indian entity from a non-resident for commercial purposes. Such loans include but are not limited to, commercial bank loans, bonds & securities, fixed rate bonds, floating rate notes etc. RBI regulates the norms governing such loans/debts/borrowings under FEMA Regulations. However, a...

Delhi High Court Directs RBI's Appellate Authority To Reconsider Revocation Of Registration Certificate Of Shubh Lakshmi Capital

Revocation Of Registration Certificate Of The NBFC To Be Reconsidered: Remands The Matter To Reserve Bank Of India's Appellate Authority

'Abuse Of Process' : Karnataka High Court Dismisses Petition Seeking Criminal Action Against Azim Premji Under RBI Act

The Karnataka High Court has dismissed a petition filed by a not for profit company named "India Awake for Transparency", challenging an order of the magistrate court dismissing its private complaint seeking directions to Reserve Bank of India to register a case against Wipro founder Azim Premji and others under the Reserve Bank of India Act. A single bench of Justice Suraj Govindaraj while dismissing the petition said: "I am of the considered opinion that the writ petition filed is an...

"Interim Order Posing Difficulties": RBI Tells SC While Seeking Lifting Of Restrictions On Declaration Of Accounts As NPAs In Loan Moratorium Plea's

The Reserve Bank of India (RBI) informed the Supreme Court today that it was seeking lifting of restrictions imposed by the Supreme Court whereby it, protected those accounts from being declared as Non-performing Assets (NPAs), which were not classified as NPAs on August 31.Senior Advocate VV Giri who appeared for the RBI told the Court that the Top Court must hear the RBI's stand on the next date of hearing."The Interim Order imposed by My Lords is causing great difficulties for the RBI. My...

Plea Seeking Extension of The Benefits Of RBI Circular on Loan Moratorium To All NBFCs: SC Issues Notice

The Supreme Court has issued notice to the Centre and Reserve Bank of India in a plea by The Confederation of Real Estate Developers' Associations of India (CREDAI) which sought for clarification regarding whether all NBFCs were eligible for loan moratorium or whether banks had the discretion to give the benefit. 

On March 27, in wake of the COVID-19 pandemic and the consequent national lockdown, the RBI had issued a Circular, giving liberty to all banks to allow a moratorium period of three...

Indiabulls Moves Delhi HC Against SIDBI, Says Loan Installments Can't Be Demanded In Light of Moratorium Imposed by RBI [Read Order]

Indiabulls Commercial Credit Limited has moved the Delhi High Court challenging the demands for loan installments made by Small Industries Development Bank of India (SIDBI). Indiabulls has contended that SIDBI can't make such demands in light of the moratorium imposed by the Reserve Bank of India by circular dated 27/03/2020. Appearing for the Petitioner, Senior Advocate Rajiv Nayyar informed the court that the Petitioner had entered into a loan agreement with SIDBI whereunder the...