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Archive: 02 May 2011

Posts in 02 May 2011

Non Performing Asset (NPA)

May 2, 2011 1117 Views 0 comment Print

Clause (o) of sub-section (1) of Section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has defined a non performing asset as follows – non-performing asset” means an asset or account of a borrower, which has bee classified by a bank or financial institution as sub-standard, doubtful or loss asset

Mortgagor can come to the Civil Court before sale with a civil suit

May 2, 2011 579 Views 0 comment Print

Under Securitisation Act, if the secured creditor is acting in violation of the rights, duties and obligations, the mortgagor can come to the Civil Court before sale with a civil suit for injunction for staying the sale. In Mardia Chemicals Ltd.. Vs U.O.I. & Ors.

How to Draft a Valid Jurisdiction Ouster Clause

May 2, 2011 1129 Views 0 comment Print

Therefore, it is explicit that more than one Court may have jurisdiction in respect of the same subject matter as per the circumstances of the particular case. In such a situation, the parties may enter into an agreement and confer exclusive jurisdiction on one of the Courts, having jurisdiction as detailed above, and at the same time oust the jurisdiction of other Courts, which may also have jurisdiction on the subject matter as provided in the Code. With a view to draft such a jurisdiction ouster clause, some principles have been culled from the following judgments.

If ‘No Debt Due’, No Liability Is Incurred By The Guarantor

May 2, 2011 11659 Views 0 comment Print

Essential Feature of Guarantee-Recoverable Debt Necessary – The purpose of a guarantee being to secure the repayment of a debt, the existence of a recoverable debt is necessary. It is of the essence of a guarantee that there should be someone liable as a principal debtor and the surety undertakes to be liable on his default. If there is no principal debt, there can be no valid guarantee. A contract of guarantee is a tripartite agreement which contemplates the principal debtor, the creditor and the surety. This was so held by the House of Lords in the Scottish case of Swan v. Bank of Scotland {(1836) 10 Bligh NS 627} decided as early as 1836.

Different Principles for Prosecuting Civil and Criminal Cases

May 2, 2011 952 Views 0 comment Print

Hon’ble Supreme Court in the case of Vishwa Mitter v. O.P. Poddar – (1983) 4 SCC 701, has, inter alia, held that if any special statute prescribes offences and makes any special provision for taking cognizance of such offences under the statute, then the complainant requesting the Magistrate to take cognizance of the offence must satisfy the eligibility criterion prescribed by the Statute

Correcting an error committed by the draftsman in legislative drafting in CPC, 1908

May 2, 2011 1729 Views 0 comment Print

Hon’ble Supreme Court in Afcons Infrastructure Ltd. & Anr. Vs. Cherian Varkey Construction Co. (P) Ltd. & Ors. {(2010) 8 SCC 24; Decided on 26.07.2010} held as follows in para 13.5 and 16 respectively. A classic example of correcting an error committed by the draftsman in legislative drafting is the substitution of the words `defendant’s witnesses’ by this Court for the words `plaintiff’s witnesses’ occurring in Order VII Rule 14(4) of the Code, in Salem Bar-II {Salem Advocate Bar Assn. II Vs. UOI (2005 6 SCC 344)}.

Banks duties before declaring NPAs

May 2, 2011 6699 Views 6 comments Print

Before declaring NPAs, Bankers have numerous duties to perform including rehabilitation not only once but multiple times – Important Information for Borrowers and their advocates. Our Associate and Banking Expert has drawn attention to the following important RBI Guidelines and circulars which will be highly useful to Borrowers and their Advocates. These need to be studied and important aspects included in the ‘Representation and Objections’ to notice u/s 13 of the Securitisation Act as well as in the application u/s 17 of the said Act:-

PVAT – Circular on Deferment from payment of Entry Tax in Punjab

May 2, 2011 1399 Views 0 comment Print

As we know the Hon’ble Punjab & Haryana High Court has already stayed the levy of entry tax in Punjab in the case of M/s Bhushan Steel v State of Punjab case on 28-03-2011 and also in other similar writ petitions challenging the levy of entry tax in Punjab on 08-04-2011. But the interim stay were applicable only to the persons who have filed writ petitions and the relief regarding deferment from payment of entry tax was available only to the concerned persons who have filed writ petitions in the High court as a result it was giving rise to filing of more and more writ petitions on the similar issue resulting in multiplicity of litigation in the High Court.

Permission to export 2,50,000 MTs of wheat, in the year 2011-12, to Afghanistan, upto 31.03.2012

May 2, 2011 376 Views 0 comment Print

Notification No. 44 (RE-2010)/2009-2014 – Central Government hereby makes, with immediate effect, the following amendment in Notification No. 27(RE-2010)/2009-2014 dated 28.02.2011 read with Notification No. 33(RE-2007)/2004-2009, dated 08.10.2007 . In notification number 33(RE 2007) 2004-09 dated 8.10.2007, a new sub para was added on 28.2.2011 by notification number 27 (RE-2010)/2009-2014. The contents of this sub para 2.11 is now substituted to read as under: 2.11 The prohibition imposed by Notification No. 33(RE-2007)/2004-2009, dated 08.10.2007 on export of wheat shall not be applicable to export of 2,50,000 MT of wheat to Afghanistan through Food Corporation of India.

Finance Minister Pranab Mukherjee to leave for Hanoi Tomorrow to attend ADB’s 44th Board of Governors’ Annual Meet

May 2, 2011 396 Views 0 comment Print

Union Finance Minister Shri Pranab Mukherjee will call on Vietnamese Prime Minister during his two days visit to Hanoi, Vietnam beginning tomorrow i.e. 3rd May, 2011. Finance Minister Shri Mukherjee is visiting Hanoi in order to attend 44th Board of Governors’ Annual Meet of Asian Development Bank (ADB). Shri Mukherjee will leave tomorrow afternoon and will return on the night of 5th May, 2011. During his bilateral meeting with Vietnamese Prime Minister , both the leaders are likely to discuss matters of mutual interest .India has granted Market Economy.

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