Narendra Sharma

Guarantor must obtain a Counter Indemnity Bond from the Borrower

Corporate Law - CONTRACT OF GUARANTEE - SCHEME OF CONTRACT ACT,1872 1(a) It is submitted that Sections 133, 134, 135, 139, 140,141 and 145 of the Indian Contract Act, 1872 provide as follows. 133. DISCHARGE OF SURETY BY VARIANCE IN TERMS OF CONTRACT.—Any variance, made without the surety’s consent, in the terms of the contract between the principal ...

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DRT has no jurisdiction to issue Certificate of Recovery against the Guarantor-Part 3

Corporate Law - 1. It is submitted that the recovery proceedings against the Guarantor before hon’ble Debts Recovery Tribunal (hereinafter ‘DRT’ or ‘Tribunal’) under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter ‘DRT Act’) are absolutely without jurisdiction. ...

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Only Civil Court Can Grant Relief of Declaration that Personal Guarantees Stand Discharged

Corporate Law - The jurisdiction of the Civil Court to entertain, try and decide any suit or proceeding in respect of the property, which is the subject matter of security interest created in favour of a secured creditor, is barred only to the extent of the matters, which the Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under the ...

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DRT has no jurisdiction to issue Certificate of Recovery against the Guarantor-Part 2

Corporate Law - Section 34 of the RDB Act provides that the said Act would have overriding effect. We have referred to the aforesaid provisions to singularly highlight that the sacrosanct purpose with which the tribunals have been established is to put the controversy to rest between the banks and the borrowers and any third party who has acquired any in...

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Delay in Sanction & Disbursal of Bank Loan a reason for failure of Majority of Projects

Corporate Law - The author has first hand knowledge and experience that a large majority of projects fail, firstly, due to inexcusable delay in sanction of working capital and secondly, due to inexcusable delay in disbursement of working capital by the idle bureaucracy in the Banks. ...

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No Review of a Judgment, If Appeal Already Decided

Recently, hon’ble Supreme Court in Gangadhara Palo Vs The Revenue Divisional Officer & Another {(2011) 4 SCC 602; Decided on 08.03.2011} has held that there can be no review of a judgment, if appeal has already been decided. The Court observed the principles as follows....

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Recent Posts in "Narendra Sharma"

Guarantor must obtain a Counter Indemnity Bond from the Borrower

CONTRACT OF GUARANTEE - SCHEME OF CONTRACT ACT,1872 1(a) It is submitted that Sections 133, 134, 135, 139, 140,141 and 145 of the Indian Contract Act, 1872 provide as follows. 133. DISCHARGE OF SURETY BY VARIANCE IN TERMS OF CONTRACT.—Any variance, made without the surety’s consent, in the terms of the contract between the principal ...

Read More
Posted Under: Corporate Law |

DRT has no jurisdiction to issue Certificate of Recovery against the Guarantor-Part 3

1. It is submitted that the recovery proceedings against the Guarantor before hon’ble Debts Recovery Tribunal (hereinafter ‘DRT’ or ‘Tribunal’) under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter ‘DRT Act’) are absolutely without jurisdiction. ...

Read More
Posted Under: Corporate Law |

Only Civil Court Can Grant Relief of Declaration that Personal Guarantees Stand Discharged

The jurisdiction of the Civil Court to entertain, try and decide any suit or proceeding in respect of the property, which is the subject matter of security interest created in favour of a secured creditor, is barred only to the extent of the matters, which the Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under the ...

Read More
Posted Under: Corporate Law |

DRT has no jurisdiction to issue Certificate of Recovery against the Guarantor-Part 2

Section 34 of the RDB Act provides that the said Act would have overriding effect. We have referred to the aforesaid provisions to singularly highlight that the sacrosanct purpose with which the tribunals have been established is to put the controversy to rest between the banks and the borrowers and any third party who has acquired any in...

Read More
Posted Under: Corporate Law |

Delay in Sanction & Disbursal of Bank Loan a reason for failure of Majority of Projects

The author has first hand knowledge and experience that a large majority of projects fail, firstly, due to inexcusable delay in sanction of working capital and secondly, due to inexcusable delay in disbursement of working capital by the idle bureaucracy in the Banks. ...

Read More
Posted Under: Corporate Law |

Recovery Proceedings by DRT against Guarantors Are Without Jurisdiction

It is submitted that the recovery proceedings under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the Guarantors are absolutely without jurisdiction. As per Black’s Law Dictionary, Ninth Edition, at page 1389, recovery means the regaining or restoration of something lost or taken away. It ...

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Posted Under: Corporate Law |

Borrower’s Concise Guide to Bank Loan

Security is taken generally to make certain that bank is able to secure repayment of loan when operations collapse. However, security may also be taken to prevent third parties to deal with the assets. Generally, hypothecation of movable property, mortgage on immovable property,...

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Posted Under: Corporate Law |

‘Ratio Decidendi’ has now been caused to be impenetrable, thus rendered a ‘top secret’ for all concerned

Narendra Sharma (1) Ratio Decidendi: It is settled law that broadly, every judgment of a superior court has three segments, viz. (i) the facts and the point at issue; (ii) the reasons for the decision; and (iii) the final order containing the decision. The principle on the basis whereof a legal issue is answered forms […]...

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Posted Under: Corporate Law |

DRT has no jurisdiction to issue Certificate of Recovery against the Guarantor

It is respectfully submitted that the recovery proceedings against the Guarantor before hon’ble Debts Recovery Tribunal under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter ‘the Act’) are absolutely unlawful. DRT has no jurisdiction to proceed against the Guarantor as he has not ...

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Posted Under: Corporate Law |

Guarantors fail to claim their rights under Contract Act although Courts have recognised these rights

Narendra Sharma, Consultant (Legal) Introduction – Recently, after going through my Articles on the website {namely (1) Director’s Personal Guarantee-A Void Agreement and (2) Personal Guarantee-A Void Agreement), one visitor informed me that, on the contrary, commenting on his case regarding enforcement of his personal guarantee b...

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Posted Under: Corporate Law |
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