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Recovery of Debts

 > Recovery of Debts (Page 2)

Laws & Legal Procedure for Recovering Outstanding Debts & Unpaid Money: Lawyers Advice

At times money extended to a company or an individual becomes irrecoverable. And various provisions in the law provide for the recovery of such debts. Some of these important provisions that come to the rescue of creditors are listed below: Recovery of Outstanding Debt & Unpaid Money under the Negotiable Instruments Act, 1881The introduction of Chapter XVII containing sections 138 to 147 was done to improve the efficacy of banking operations. Another prominent reason was to prevent the payee from suffering on account of non-payment due to dishonour of cheque. On that account, Section 138 of the Act lists the...

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Defences available to the Accused in a Cheque Bounce Cases: Lawyers Advice

A Cheque Bounce case is a criminal case provided under section 138 of Negotiable Instruments Act of 1881. A cheque is said to have bounced for several reasons for example insufficient balance, accounts closed, signature mismatch etc. Conditions necessary for cheque bounce: • The cheque is dishonored due to insufficiency of funds, signature mismatch, account blocked etc. • A Legal notice is given within 30 days after such dishonor. • A payment of due amount is not made within 15 days time after the legal notice has been issued by the aggrieved. Defence...

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Evidence and Burden of Proof in Cheque Bounce Cases: Lawyers Advice

Dishonor of a cheque or cheque bounce occurs when a cheque that is presented in the bank is returned unpaid which can be due to various reasons including insufficient amount in the bank, signature mismatch etc. The aggrieved party can institute a suit against the accused under the Negotiable Instruments Act of 1881. Evidence in a Cheque Bounce Case:Under Section 145 of the Negotiable Instruments Act of 1881: The Complainant has to furnish his evidence, normally by way of affidavit; in lieu of examination in chief. Documents like bounced cheque, dishonour memo, copy of notice etc are attached to support the...

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Filing Procedure for Cheque Bounce Case: Lawyers Advice

The Negotiable Instruments Act of 1881: As per the act, cheque has been defined under section 6 as the bill of exchange which is payable on demand by the applicant. A Cheque bounce is when there is dishonour of payments by the drawer when the cheque is submitted for payment by the drawee. The dishonour can be due to various reasons, some are clear overwriting on the cheque, insufficiency of the amount in the account used for payment, attestations on different documents do not match etc. Institution of a Criminal Suit for a Cheque Bounce CaseUnder Section 138 of Negotiable Instruments Act...

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Basic Rights of Borrowers: SARFAESI Act of 2002

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act of 2002 was enacted to fight the menace of Non-Performing Assets (NPA), on the basis of the recommendations made by the Andhyarujina Committee. But many experts were of the belief that the act is draconian and completely favours the Banks, Financial Institution and other Non-Banking Financial Institutions (NBFCs) and hence, it is against the principle of equity and natural justice. The constitutionality of the SARFAESI Act of 2002 had been put to question in the landmark case of Mardia Chemicals v Union of India AIR 2004...

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Corporate Debt Restructuring (CDR) Mechanism in India

The idea of Corporate Debt Restructuring (CDR) was acquainted with the India when in the year 2001, the Reserve Bank of India (RBI) thought of specific rules to be trailed by banks and other money related organizations. The RBI expressed that the idea of CDR is a non-statutory and intentional procedure where if 75% of the lenders (by esteem) choose to help the organization, the other 25% of the lenders will likewise have the consent to help the organization through the procedure of CDR. The CDR is accessible just to those organizations which have numerous financial balances and has assumed...

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Basics of Corporate Debt Restructuring (CDR) Mechanism in India

The Corporate Debt Restructuring or CDR is a willful procedure under which banks and money related organizations help those organizations, who are confronting budgetary challenges because of inner or outside variables, to rebuild their obligations. It is noteworthy to mention that, Corporate Debt Restructuring or CDR is a non-statutory procedure. The rationale behind this system is to give opportune help to the organizations and restore them. Another thought process is to secure the enthusiasm of the partner, speculators, and different gatherings who are going about as moneylenders to such undertakings. CDR is accessible to those organizations which have profited credit...

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Indiabulls Housing Finance Limited v. Deccan Chronicle Holdings Ltd. & Ors. (2018)14 SCC 783

M/s. Indiabulls Financial Services Limited (IBFSL) was granted a certificate to operate as a Non-Banking Financial Company (NBFC). The Appellant and IBFSL were sister concerns. The IBFSL had disbursed a loan to the Respondent borrowers by creating equitable mortgage over various properties. After sometime, the IBFSL got merged with the Appellant and the assets and liabilities of IBFSL stood vested in the Appellant. The Respondent borrowers had committed default in repaying the loans advanced even before the merger; loan recall notice was also issued. Subsequently, the loan accounts of the Respondents and were classified as non-performing assets (NPA). A notice...

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Baleshwar Dayal Jaiswal v. Bank of India and Ors., AIR 2015 SC 2881

In this case, there were two petitions which had been clubbed together, and a specific question of law was answered by the Hon’ble Supreme Court of India. The petitioners, who were the borrowers in this case had raised a contention before the Hon’ble Court that a certain provision in the Recovery of Debts due to Banks and Financial Institutions (RDBFI) Act of 1993, had to be included with Section 18(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act of 2002. This provision of the RDBFI Act gave powers to the appellate tribunal to...

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Vasu P. Shetty v. Hotel Vandana Palace and Ors AIR 2014 SC 1947

In this case, the borrower had taken a loan from Syndicate Bank for constructing a Hotel. Later, there was a default on the borrower in repaying the said loan. Subsequently, the bank took action in accordance with the rules of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act of 2002 The bank took formal possession of the property which was mortgaged and had been given as a surety for the due discharge of the loan, and put it up for sale. The appellant in the present case was the highest bidder whose bid had...

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