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Recovery of Debts

 > Recovery of Debts (Page 3)

Guidelines for Borrowers, NPAs under the SARFAESI Act, 2002

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act of 2002 is quite a convenient tool for banks and other financial institutions which includes Non-Banking Financial Company (NBFC) to recover the debts from their borrowers as financial creditors. But the borrowers are also entitled to certain rights under this SARFAESI Act of 2002 to claim damages if there is default on the part of these financial institutions. The term ‘borrower’, according to Section 2 of the SARFAESI Act, 2002 refers to “any person who; has been granted financial assistance by any bank or a financial...

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V.J. Dhanapal v. Union Bank of India and Ors. C.R.P. (PD) No. 3697 of 2017

The present case was a revision petition filed by the petitioner borrower, V.J. Dhanapal, who was one of the partners of M/s. Haris Chicken which had been receiving financial assistance from the Union Bank of India, Bangalore. There was a default on his part, due to which the account of the borrower was classified as a Non-Performing Asset (NPA). Thereafter, the respondent bank issued an auction sale notice, fixing the date for sale on 27/9/2013. The petitioner challenged the notice due to non-compliance of the requirements under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of...

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Dipankar Chakraborty v. Allahabad Bank and Ors. AIR 2017 Cal 289

The petitioner borrower in the present case had submitted that, he had enjoyed credit facilities from the bank. Since the bank had not acted in terms of its obligations, the petitioner was obliged to file a suit for damages being Money Suit No. 120 of 2000 before the learned City Civil Court at Calcutta against the bank. Furthermore, in the present scenario, the bank had not filed its claims within the time period of 30 days before the court due to which the veracity of their case got affected immensely. This was one ground on which the petitioner had approached...

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Recovery of Debts by Corporate: Cheque & Negotiable Instruments Act, 1881

In the modern world, cheques are being used in almost every form of transaction, be it debts, loan guarantees, employee salary payments etc. But there comes a bane with every boon. “Check Bounce” nowadays, is one of the most prevalent and common forms of financial problems in India, and this problem is also being faced by many corporate houses at a large scale. The law deems this to be a criminal offence in accordance with Section 138 of the Negotiable Instruments Act, 1881 respectively. Under this act, there are three parties involved in a cheque bounce dispute: The drawer, who is the...

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Recovery of Debts by Corporate: Recovery Suits

This is a very common form of debt recovery that companies always prefer before the Courts of our nation nowadays. The procedure is a bit lengthy considering that both the parties in the loan recovery dispute, i.e., the company and the borrower, are given an equal opportunity to plead their cases and the evidence is given more of consideration. This form of a suit is more preferred by the corporate houses while considering the aforementioned reasons. While filing such a suit, a primary preference is given to the place where the defaulting borrower resides. To state a point of caution,...

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Recovery of Debts by Corporate: Insolvency and Bankruptcy Code, 2016

This is very preferred mode of debt recovery when it comes to companies recovering debts from debtors who are unable to repay and fulfil their obligations due to factors like insolvency which render them incapable to do the same. When it comes to process that involves the company claiming a certain amount of debt from a debtor who has gone insolvent or bankrupt, the company becomes the financial creditor, and the debtor is known as the corporate debtor. Insolvency basically means a financial situation whereby an individual or an entity is unable to fulfil his/her financial responsibilities owing to an...

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Recovery of Debts by Corporate: Summary Suits

The Corporates and Business Houses either big or small face this prominent issue whereby there exists a persistent problem of debts and the legal challenges associated thereto. One of the legit ways to enable faster recovery of debts is by way of going for a “Summary Suits” i.e. under Order 37 of the Code of Civil Procedure 1908 respectively. A summary suit is one in which the Corporate can look forward to a faster means of disposal of the case whereby it seeks to recover some form of a debt from the borrower. There are various benefits for this form...

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