No Bar On Pursuing Criminal Proceedings After Arbitration Has Commenced: Delhi High Court

Observing that commencement of arbitration does not bar a party from pursuing criminal proceedings, the Delhi High Court directed the Police to investigate the complaint lodged by a Non-Banking Finance Company against one of its defaulting borrowers.Justice Subramonium Prasad observed,"there is no bar of pursuing criminal proceedings once arbitration has commenced."In the instant case, the Bench noted that the facts on the face of it prima facie discloses commission of a cognizable offence. It...

Bank Can't Be Directed By Writ Of Mandamus To Grant 'One-Time Settlement' Benefit To Borrower : Supreme Court

No writ of mandamus can be issued by the High Court in exercise of powers under Article 226 of the Constitution of India, directing a financial institution/bank to positively grant the benefit of One Time Settlement Scheme to a borrower, the Supreme Court has held in a judgment delivered on Wednesday (15 December 2021).The bench comprising Justices MR Shah and BV Nagarathna observed that no borrower can, as a matter of right, pray for grant of benefit of One Time Settlement Scheme. It was held...

Centre May Consider To Create All India Tribunal Services For Allocation Of Persons To Different Tribunals: Supreme Court

The Supreme Court on Wednesday orally put to the Union of India that, so far as administrative work in tribunals are concerned, it may consider creating an All-India Tribunals Service on the lines of UK's Her Majesty's Tribunals Service, by way of an umbrella service for allocation of persons to different tribunals like the NCDRC, the NCLT, the DRT and those under other central legislations.The bench of Justices D. Y. Chandrachud, Surya Kant and Vikram Nath was hearing the Imtiyaz Ahmad v. State...

Delhi High Court Seeks Expeditious Appointment Of Recovery Officers In DRTs, Framing Of Rules For High Value Recovery Matters Within 3 Weeks

The Delhi High Court has directed the Centre to ensure appointment of Recovery Officers in Debt Recovery Tribunals across India without any delay.A Bench of Justices Vipin Sanghi and Jasmeet Singh sought a status report to be filed in this regard on November 17, the next date of hearing, highlighting the progress made so far.The Bench was hearing a plea raising the issue of delay in disposal of high-value recovery cases pending before the Debt Recovery Tribunals. In one of the earlier hearings...

SARFAESI - Fresh 30 Days Notice Not Needed If Failure To Conduct Sale As Per First Notice Was Due To Borrower's Actions : Supreme Court

If the sale of a mortgaged property as per the SARFAESI Rules was interrupted during the 30 days notice period due to the actions of the borrower, a fresh notice of 30 days is not necessary for the sale process to resume after the interruptions are over, held the Supreme Court in a recent judgment.In the case S. Karthik v. N Subhash Chand Jain, the Court stated that a fresh notice is necessary only if the sale got stopped due to reasons which are not attributable to the borrower.A bench...

'Litigants In Distress' : Supreme Court Deprecates Centre's Practice Of Giving Additional Charge To DRT Of One State Over Another State Due To Unfilled Vacancies

The Supreme Court on Wednesday expressed disapproval of the Centre's practice of extending jurisdiction of Debts Recovery Tribunal of one state to another state due to unfilled vacancy of Presiding Officer.A special bench comprising the Chief Justice of India NV Ramana, Justice DY Chandhrachud and Justice L Nageswara Rao was hearing a petition filed by the State Bar Council of MP challenging a notification issued by the Central Government attaching the jurisdiction of DRT Jabalpur (Madhya...

DRAT Requests Punjab & Haryana HC To Initiate Contempt Action Against Lawyer Who Filed Multiple 'Contemptuous Complaints' Against Presiding Officers

The Debts Recovery Appellate Tribunal, Delhi has directed its Registrar to request the Punjab and Haryana High Court, to take appropriate action under Contempt of Courts Act, 1971 against Advocate Harinder Pal Singh with regard to the "contemptuous" allegations made by him against the Presiding Officers of DRTs.Advocate Singh had filed a complaint dated May 11, 2021 addressing the President of India, Prime Minister of India, Minister of Finance etc. against the Presiding Officer of DRTs 1 and 2,...

Presiding Officer Of Debts Recovery Tribunals Should Be Vigilant That Matters Are Taken Up Chronologically: Madras High Court

The Madras High Court has recently observed that the Presiding Officer of Debts Recovery Tribunals should be vigilant that matters are taken up chronologically. The Bench of Chief Justice Sanjib Banerjee and Justice P.D. Audikesavalu was hearing a plea filed by the State Bank of India complaining of the inordinate delay on the part of the DRT, Coimbatore, and seeking direction for the early disposal of a matter.Importantly, the Bench noted thus:"The present petitions are part of the...

Supreme Court Seeks Centre's Stand On Legality Of Attaching DRTs In One State To Those In Other States

The Supreme Court today issued notices to the Centre on a plea filed against Delhi High Court's order deferring by 6 weeks the challenge to validity and legality of the notification issued by the Union Ministry of Finance transferring & attaching the jurisdiction of Debt Recovery Tribunal, Jabalpur to Debt Recovery Tribunal, Lucknow in the absence of availability of presiding officer at DRT Jabalpur. The Petition has been filed by M.P State Bar Council through AOR Mrigank Prabhakar...

Securitization of Financial Assets: A Potent Panacea To Non-performing Assets

With burgeoning of globalization & liberalization, there has been a paradigmatic shift in the role banks and other financial institutions in shaping Indian Economy. Banks & Financial institutions constitute the bedrock of any economy and, for any economy to realize its acme it must have a bolstered banking sector. Albeit in recent times perhaps just after the beginning of this millennium until the devastating financial crisis of 2008 and thereafter, banking sector has been grappled with...

Tracing The Formation Of The Insolvency And Bankruptcy Code 2016 And What Makes It A Game-Changer

Members of a company have the option of limiting their liabilities, hence it has always been one of the most preferred forms of conducting business. A company is a registered association having perpetual succession, a separate legal entity, common seal whose shares are transferable having limited liability. In order to comprehend the Insolvency and Bankruptcy Code 2016 effectively and to analyse its implementation critically, it is important to understand the pre-existing legal framework...

Interim Order In Writ Petition Challenging SARFAESI Proceedings Should Generally Not Be Passed Without Hearing Secured Creditors: Supreme Court

The Supreme Court has observed that interim orders in writ petitions challenging SARFAESI proceedings should generally not be passed without hearing the secured creditor.Interim orders defeat the very purpose of expeditious recovery of public money, said the bench comprising Justices L. Nageswara Rao, Hemant Gupta and Ajay Rastogi. Therefore, the High Court should be extremely careful and circumspect in exercising its discretion to grant stay in such matters, the court said.The court noted that,...