Educational Institutions Should Not Be Shut Down For Debt Recovery When Other Options Exist: DRAT Kolkata

The Debts Recovery Appellate Tribunal (DRAT) at Kolkata has recently observed that educational institutions should not be shut down or their management taken over by secured creditors when other lawful modes of recovery are available, while partly allowing an appeal filed by Kotak Mahindra Bank against an interim order passed by the Debts Recovery Tribunal, Kolkata.Chairperson Justice Anil Kumar Srivastava observed, “Educational Institutions are not to be shut down or their Management should...

Bank Cannot Attach Deposits Pending Recovery Proceedings Without Show Cause Notice Under RDB Act: DRAT Chennai

The Debts Recovery Appellate Tribunal (DRAT), Chennai has held that a bank cannot attach or exercise lien over deposits during the pendency of recovery proceedings unless the procedure prescribed under the Recovery of Debts and Bankruptcy Act is followed. It also ruled that such relief cannot be granted when the original application does not contain a specific prayer seeking recovery against the concerned party. Interim directions, the tribunal said, cannot travel beyond the scope of the main...

After Account Turns NPA and Recovery Suit Is Filed, Interest Is at Tribunal's Discretion: DRAT Allahabad

The Debts Recovery Appellate Tribunal (DRAT) at Allahabad has reiterated that once a loan account is classified as a non-performing asset (NPA) and a recovery suit is filed, contractual terms governing interest do not automatically apply. The tribunal said it is for the adjudicating forum to decide the rate of pendente lite and future interest. A coram of Chairperson Justice R.D. Khare dismissed an appeal filed by Housing and Urban Development Corporation Ltd. (HUDCO) against an order of the...