DRT Legal Solutions
(Debts Recovery Tribunal Legal Solutions) is an India based
Law Firm specializing in DRT, Securitisation, NCLT, Borrowers and Guarantors Solutions in Debts Recovery Tribunals,
Pioneers in Counter-claims and Damage Suits based on Law of Torts and Law of Damages
Phones (India) - Mobile - +91-930-2103689, Off. & Res.- +91-731-4049358 and +91-731-3290201
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For reference of such judgments please click DRT Judgments Favourable / Useful to Borrowers
Our Client wins in Securitisation Appeal against 4 Banks in DRT – amount involved nearly Rs. 90 crores and a tooth & nail fight of 4 years
Our Weekly Mails are DRT Guide and gold mine of practical information for the borrowers and guarantors :- The visitors of this web site particularly Borrowers and Guarantors will be immensely benefited by our weekly mails, all previous issues from 1st one till the last one may be viewed by clicking Drt Solutions Weekly Mail for Borrowers & Guarantors Separate web pages have been created to contain these mails in batches of 10 so that pages open up fast. These mails are DRT Guide and gold mine of information on current topics giving lot of practical suggestions and comments. Any new comer to this site must go through all the weekly mails right from the issue no 1 to the latest. If possible please spread the reference of this web site and the weekly mail among the persons, borrowers and guarantors who are the bank victims. If anyone desires to get these mails regularly, he may write to us for inclusion of his e-mail ID in the regular mailing list. The weekly mail is issued on every Friday morning 6 AM. The particular issue of the weekly mail is first published on the web site and then mails are sent. These weekly mails have become quite popular among the borrowers and guarantors in the country as we are getting huge no of mails appreciating the same. We welcome suggestions for improvements as well as the topics on which more information is required.
Important Announcement - Video Arguments presented in Indian Court for the First Time :- We are pleased to announce that on 10th October 2007, proposed 'Computer Presentation' was held for the first time in the country by Mr. Ram Kishan before Hon'ble District Judge, Indore and the 'Video Arguments' were submitted and shown to the said Judge on 15.10.07. Thus a history has been made in the Judicial Management in our country. We have prepared two DVDs, one showing the method and system for such presentation, its advantages with a practical application. Another DVD showing the actual presentation before the District Judge, Indore on 10th October 2007. we have prepared an article titled 'Computer Presentation & Video Arguments' vide click here Court Technologies IT Presentation Video Arguments
DVDs containing Video Record of DRT Conference at Indore and Chennai:- All the proceedings were video recorded and the DVDs containing the same are available. Any one desiring to have the DVDs may send through e-mail their postal address, name of the company, and if possible details of the pending DRT case or Securitisation case and the amount involved, name of concerned person and his contact details including phone nos etc. to us. During these conferences, eminent DRT experts using PowerPoint Presentation dealt with all the aspects of Bank Litigations and Borrowers Defence. The participants from all over the country were highly impressed and benefited from the knowledge thus gained.
Important Victory of Our Client against Bank:- One of our important clients at Chandigarh who filed damage suit of Rs. 1825 crores against a public sector Bank on 13.01.05 registered an important victory on 03.03.07 when the Court waived the entire court fee despite all opposition by the defendant Bank. The alleged dues of the Bank are Rs. 30 crores. Since the damages are much more than the alleged claim of the bank, no recovery action can be executed till the said damage suit is finally decided. The usual delay in the litigation does not affect our client as the damages are increasing day by day due to interest charges at rate which is much higher than the increase in the alleged claim of the bank. The said damage suit was drafted by us and all necessary advice and guidance was provided on all dates of proceedings.
Important Tip to Old and New Visitors:- A visit to new page Synopsis Video Interview - BS Malik, Sr. Supreme Court Advocate will be highly useful. You may take out the print and study the same. Listening to the video interview will be further useful. You may select the clips for replay for discussions with your colleagues as well as the advocates
DRT, drtsolutions, Debt Recovery Tribunal, DRT matters, DRT WS, DRT Legal Opinions, DRT Arguments, DRT Documents, Appellate DRT, Bank litigations, Securitisation, Counter-claims, NPAs Settlements, checking of bank accounts and documents etc., expertize in all these matters past 14 years being a Leading Law Firm. Legal BPO and offshore BPO is our new activity for which we have launched new web site www.usindolegal.com
Highlights:- All problems of Debt Recovery Tribunals i.e. DRT and Securitisation Act are tackled by us. People from all over the country are phoning us, then visiting and getting their problems solved. Please visit Home Page and other Pages also
Video CD containing Interview of Mr. B.S. Malik, the Supreme Court Advocate as well as Our Client available from us:- This video interview will be immensely useful to industrialists, borrowers, guarantors and bank litigants in DRTs.
Our Client files damage suit of Rs. 1825 Crores against a bank and a financial institution in Chandigarh:- Our Client, an eminent Supreme Court Advocate (practice more than 25 years in Supreme Court) has filed a damage suit of Rs. 1825 Crores in Chandigarh on 13.01.05 against a bank and a financial institution. The said damage suit was drafted by us and it runs in 118 pages having documents of 537 pages. In a video interview lasting more than 30 minutes on 23.01.05, the said Mr. Malik appreciated our legal concepts, our drafting and our knowledge and experience about application of law of torts to banking, industrial sickness, drt, counter-claim, securitisation act and calculations of damages.
Our Computer Cell for checking of Accounts has started functioning:- Our Accounts Cell headed by an ex-Bank auditor (experience 38 years) has started functioning. You get your entire account checked up and certified by him. Invariably in all cases, the accounts filed by the banks are defective and illegal and thus the very debt due for the purpose of DRT and Securitisation becomes questionable requiring rework and refiling, a difficult task for the banks and financial institutions. Please contact us for the details and charges through e-mail firstname.lastname@example.org
News and Views (Please click body of each item below for details)
Contents of some of the items below will be useful in framing legal defence in DRT as well as against the Securitisation Ordinance.
M/s Khaders International Constructions Ltd. filed a damage suit of Rs. 303.13 crores against the Union Bank of India in 1990. The suit was filed as an Indigent Person. The court fee was Rs. 39.31 crores. The trial court in Kochi vide its order dated 21.11.91 exempted the party from paying the said court fee. The Union Bank of India approached the Kerala High Court in1992 requesting reversal of the said order of the trial court. The Kerala High Court vide its order dated 20.7.92 dismissed the application filed by the Bank. The Union Bank of India filed an appeal to the Supreme Court in 1993.The Supreme Court vide its order dated 8.5.2001 dismissed the appeal filed by the Bank.
Our Comments :-The sick companies can file their damage suits under the provisions of the Order-33 of the Civil Procedure Code 1908 as an Indigent Person citing the above ruling of the Supreme Court. Counter-claims in DRT also can rely on this ruling. This will also help in getting exemption from the deposit of 75% in appeal, if any in DRAT in case of Securitisation Ordinance in DRT.
(1) The Supreme Court in its rulings vide Jay Laxmi Salt Works (P) Ltd.v State of Gujrat, [(1994)4 SCC 1] has stated "Truly speaking entire law of torts is founded and structured on morality that no one has a right to injure or harm other intentionally or even innocently. Therefore it would be primitive to class strictly or close finally the ever-expanding and growing horizon of tortious liability. Even for social development, orderly growth of the society and cultural refineness the liberal approach to tortious liability by courts is more conductive."
(2) The Supreme Court in its rulings vide M.C. Mehta vs. Union of India, [AIR 1987 SC 1086; (1987) 1 SCC 395 P. 420; 1 ACC 157] has stated " We have to evolve new principles and lay down new norms which will adequately deal with new problems which arise in a highly industrialized economy. We can not allow our judicial thinking to be constricted by reference to the law as it prevails in England or for the matter of that in any foreign country. We are certainly prepared to receive light from whatever source it comes but we have to build our own jurisprudence"
(3) The Supreme Court in its rulings vide [(1958-65) ACJ 296 p. 304] stated that " there is no justification, in principle or in public interest, that the State should not be held liable vicariously for the tortious act of its servant “
(4) The Supreme Court in its rulings vide Nagendra Rao vs State of Andhra Pradesh (1994) case has stated that "No legal or political system can place the state above law as it is unjust and unfair for a citizen to be deprived by negligent action of the state without any remedy" The court also has the power to pay compensation to victims of state violence or misconduct. The Supreme Court has laid down the "deep pocket" principle in awarding compensation - richer the accused, higher the compensation. if only investigation and prosecution against lapses by the state is as sharp as they are against private parties, you would see a more accountable government.
(5) Under the law of Torts the Supreme Court in Common Cause, A Registered Society vs Union of India [ 1996 (7) Scale 156] and in a public interest petition under Article 32 of the Constitution set aside the allotment of petrol pumps to fifteen persons made by a central minister (i.e. Captain satish Sharma) from the discretionary quota on the ground that the discretion was mala fide exercised. Supreme Court further issued notice to the minister to show cause why he should not be held personally liable to pay damages for his mala fide action on the ground that his action amounted to the tort of misfeasance in public office. Elaborating the nature and ambit of this tort the Court observed; "public servants may be liable in damages for malicious, deliberate or injurious wrong doing. According to Wade ' there is thus a tort which has been called misfeasance in public office and which includes malicious abuse of power, deliberate maladministration and perhaps also other unlawful acts causing injury. With the change in socio-economic outlook, the public servants are being entrusted with more and more discretionary powers even in the field of distribution of government wealth in various forms. We take it to be perfectly clear, that if a public servant abuses his office either an act of omission or commission and the consequences of that is injury to an individual or loss of public property, an action may be maintained against such public servant. No public servant can say that ' you may set aside an order on the ground of mala fide but you cannot hold me personally liable'. No public servant can arrogate to himself the power to act in a manner which is arbitrary ".
The Court has also elaborated as to what is 'Government Wealth'. According to the Court it will include " allotment of plots, houses, petrol pumps, gas agencies, mineral lease contracts, quotas and licenses etc." After cause was shown by the minister, he was ordered to pay Rs 50 lacs as exemplary damages to the Government exchequer on the following reasoning: Since the property with which Capt. Sharma was dealing was public property, the Government which is by the people has to be compensated. [Common Cause, A Registered Society vs Union of India [ 1996 (8) Scale 127, p.130]
The Court held that exemplary damages can be awarded for oppressive, arbitrary and unconstitutional action by the servants of the Government.
Our Views ;- (1) The above cases are the well defined examples for the public that the Supreme Court has applied the law of torts to penalize the two Ministers with damages in each case of Rs. 40 lacs and above. If this could be done in case of Ministers, it can also be done with the bankers who are intentionally disobeying the statutory RBI Guidelines apart from violating the duty of care for which the industrial borrowers are specially entitled.
(2) The famous Union Carbide Gas Tragedy case is based on law of torts and it is first case of its kind where interim damages were paid. There are numerous cases in our country where the provisions of law of torts were fully applied. Hence the said law is fully applicable to the banking cases also.
News :- Gujrat High Court has asked Mardia Chemicals 'to file counter-claim against ICICI Bank' vide page 6 of the Economic Times dated 13.03.03.
Comments :- We had announced this quite long back. The counter-claim must be filed under the law of torts. The principles are given in the web site. We have special expertize in drafting such counter-claims.
News :- (a) Mardia Chemicals' Factory taken over and Management given to ITCOT
(b) Pam Pharmaceutical's MD denied bail
Comments and Solutions :- These parties have not put up their legal defence properly at the lower level of judicial process. Had they made their exhaustive counter-claims and filed the same in DRT and contested the same using all the provisions of law, they would have not faced the above problems. Application of the law of torts instead of promissory estoppel would have been more appropriate and effective. Since the counter-claims are much bigger than the banks' claims, there is no debt due and hence no coercive action can be taken (i.e. for example Securitisation Act can not be applied) till the claims and counter-claims are fully decided. They must file the counter-claims without loss of time and try their best to retrieve out of the situation. The higher courts like High Court and Supreme Court will provide no remedy till the counter-claim in DRT is fully adjudicated. For further details please visit the pages - 'DRT Cases Handled by Us', 'Frequently Asked Questions', 'Securitisation Act - Notes' and 'Mini Articles - Letters to the Editor' (Letter titled 'Real Wilful Defaulters' published in the Financial Express dated 05.12.02 was written with specific comments on the news item on 'Mardia Chemicals') of this web site. The parties can even speak to us on 0731-5045883, or Reliance (WLLM) 35045883 or e-mail to us at email@example.com
News :- One of our clients filed a counter-suit of Rs. 29 crores against a public sector bank under the law of torts. The court fee was Rs. 87 lacs. The trial court waived the fee and declared the party as indigent. The bank did not appeal. The bank filed a WS with general and evasive denial Our client got a very good opportunity through the tool of discovery. First of all exhaustive discovery of documents was made. The bank was forced to produce the important documents. Our client then adopted the tool of discovery through interrogatories. The bank desired framing of the issues. The trial court did not agree with the request of the bank and accepted the application of the client. The bank officials are finding it difficult to answer the interrogatories. We have advised the party that the bank officials must be called to witness box and they should be made to admit the wrong doing so that no fact is left to the judge to apply his discretion.
Comments :- The bank is now completely trapped.
News :- MPEB (MP Electricity Board) files a Rs. 60 crores damages against Orissa Electricity Board vide news item in the Economic Times dated 18.10.02. Past 50 years, the MPEB was getting free power from Orissa. Now that free power has been stopped. MP government has moved a Jabalpur court seeking damages of Rs. 60 crores.
Our Views :- MPEB and MP government did not spare the Orissa government and its Electricity Board and filed damages. As per law, the MPEB or other Electricity Boards can not charge more than 20% above the cost of production i.e. aprox. Rs. 2.20 per unit. They have illegally charged excess rates of Rs. 4 to 5 per unit to Industries and other consumers. In all such cases, damages should be filed against MPEB or other Electricty Boards.
News :- In DRT Jabalpur, a borrower Company filed a counter-claim of Rs. 4 crores against the bank which filed a recovery application of Rs. 33 lacs. The counter-claim was based on our legal opinion. Initially the bank delayed the reply. DRT imposed penalties on several dates. Despite this, when the bank continued to avoid reply, the DRT ordered closure of defence. Finally the bank submitted reply. As per our advice the borrower Company desired cross-examination of bank officials. On this the bank has come forward for compromise.
Our Views:- This case proves the essentiality of counter-claim which we are emphasizing right from the beginning. This case proves that the the counter-claim is the best defence in DRT cases.
News :- THE FINANCIAL EXPRESS in its issue dated 10.9.02 at page 1, has reported 'Angry Lady Guest Wants Rs. 50 lakh From Hotel' The said lady guest is a corporate lawyer. She filed a damage suit of Rs. 50 lakhs under the law of torts against Hotel Taj, Jaipur for negligence and deliberate wilful inaction.
Our Views :- The responsible citizens like the said lady guest should organize claiming damages for the wrong doings of the other party and fight such cases. In fact, earlier in British days, the famous tort lawyers like Pandit Motilal Nehru, Mohammed Ali Jinnah, Tej Bahadur Sapru, Sir Hari Singh Gaur have won several cases based on the law of torts. Had such advocates been alive today, there would have been considerable check on rampant corruption in politics and bureaucracy. On account of DRT Act and Securitisation Act, the industrialists have no choice to fight on basis of this law to not only ensure their survival but to protect the safety of their property as well as the property of the guarantors.
News :- THE FINANCIAL EXPRESS in its issue dated 5.7.02 at page 4 has reported vide news item 'HC Restrains Pendse From Disposing Of Assets' that the Tata Finance Limited has filed a damage suit of Rs. 426.50 crores against their former managing director and his associates on account of breach of fiduciary obligations, breach of contract and short of deceit.
Our Views :- This item shows that nowadays renowned organisation such as Tatas are also filing huge damage suits worth more than Rs. 426 crores against group of individuals.
(1) Amendment in Court Procedure :- There is historic amendment in Court procedure with effect from 1.7.02, highlights are as under:-
(a) Summons can be sent through courier, e-mail, fax
(b) Written statement will have to be filed within 30 days of receipt of summons which at the most could be extended maximum upto 60 days only by the court.
(c) After receipt of the summons, the absenting party will be fined Rs. 5000=00
(d) The examination-in-chief may be recorded and filed through affidavit
(e) The evidence of the witnesses, their cross-examination and re-examination may be carried out by the commissioners (i.e. Advocates appointed by the Court) in their offices and report submitted within 60 days
(f) For every stage of the trial, time limits have been laid down
Conclusion:- The above historic amendments have come into force with effect from 1.7.02 and will greatly improve the efficiency of the litigation process as well as saving the costs
2) Establishment of e-court by Supreme Court:- The Supreme Court is establishing an e-court. The citizens can file and process their cases through e-media including arguments. The parties need not visit the Supreme Court. There will be tremendous improvement in judicial efficiency and saving in costs. The initiative by the Supreme Court will have exemplary effect on the HIgh Courts and Trial Courts.
News :- The Financial Express dated 28th Nov. 2001 at page 1 published a news item 'Shankar Sharma set to slap Rs. 500-cr suit on Centre' It was reported that 'Accusing the government of victimizing them for being the angel investor in Tehelka.com which exposed corruption in defence deals last March, First Global's Shankar Sharma and his wife Devina Mehra on Tuesday said they would file a case for 'punitive damages' worth Rs. 400-500 crores against the government some time next week.
Our Views :- This news item shows that people in our country are also becoming bold enough to file damage suits against the government. Such action alone will make the government and its machinery responsible and accountable for proper functioning of the democracy. Similarly the injured borrowers and the guarantors should also file their counter-claims and or counter-suits for the injury, loss and damages under the law of torts.
News :- The Economic Times dated 10th Dec. 2001 at page 1 published 'RS 28,000-CRORE DAMAGES SUIT MAY PROVE TO BE LIFE-JACKET' 'Dabhol fast turning out to be Enron's only ray of hope' It was reported that 'As time ticks away DPC is gearing up to issue the final termination notice on the Maharashtra State Electricity Board and then start arbitration proceedings in London. DPC has pegged the net present value of its loss of revenues over 20 years at Rs. 28,000 crore (around $ 5bn). The revenue loss which has occurred is what DPC is likely to claim during arbitration.
Our Views :- The DPC under the ownership of the Enron executed documents with the Electricity Board and Maharashtra Government. These documents were not having one sided terms and conditions. During course of implementation of the project, the DPC filed 18 suits against the said Electricity Board and the Government and won those suits. And now in the arbitration proceedings the DPC is to claim the damages of Rs. 28,000 crores. The lesson is that our industrialists and businessmen should scrutinize the documents to be executed and should not sign one sided terms and conditions. They should keep in view as well as in writing any injury and claim the same if the occasion, if so arises. The Industrial Associations in the country should have alert and active law departments which should undertake legal scrutiny of all the bank security documents and should initiate rectification of illegal and one sided terms and conditions. If such work is done earnestly, it will be greatly helpful to industries, banks as well as the nation. We are prepared to undertake such job if the Associations assign the same to us.
News :- The Economic Times dated 8th June 2001 at page 1 published SMOKER GETS BIGGEST-EVER AWARD 'Jury tells Philip Morris to pay up $3bn (i.e. more than Rs. 14,000 crores) in damages' The award was the highest individual punitive damage award ever against a cigarette maker on account of negligence and fraud in not properly warning the smoker of the risks of smoking causing incurable lung and brain cancer.
Our Views :- The damage to the human life is to be valued and proved by the person concerned. This example shows that a single living individual human being can claim damages to the extent of more than Rs. 14,000 crores for the incurable disease. Hence the injury caused to a person like an industrial unit on which several workers - direct as well as indirect and their families, entire society due to various contributions through taxation depends could be enormous. It is pity that we are neither valuing our life nor are prepared to assert our rights based on law of torts. The competent and capable industrial borrowers and guarantors who are injured must claim their rightful dues.
News :- The Financial Express dated 20th Jan. 2002 at page 11 published a news item 'Respect for rules only can improve corporate governance' The former chief justice of India and chairman of Centre for Corporate Governance(CGC), Justice MN Venkatchaliah said 'General adherence of the corporate governance norms cannot be achieved unless the fear of respect for norms is there.'
Our views :- were expressed in our letter (reproduced below) to the editor published in The Financial Express dated 22nd Jan. 2002 :-
'Fear is the key to governance
This refers to the news item 'Respect for rules only can improve corporate governance' (Jan.20) The former chief justice of India and Chairman of Centre for Corporate Governance (CGC) Mr. MN Venkatchaliah has timely pronounced that fear of violation of norms can alone improve the corporate governance and he called upon the legal community to create such atmosphere. This is perfectly true also for the governance of the country whose managers are the politicians and the bureaucrats. All this boils down to reform of the conduct with the tool of fear operating through legal provisions such as law of damages and law of torts combined with criminal law to be applied widely first on the top echelons of the society i.e. politicians, bureaucrats and businessmen. The test for implementation should be the extent to which our corruption index of 71 among 91 nations can be brought down. A time bound program and achievement can alone convince the voters about the true law abiding conduct of the politicians. Then only they deserve to be called as public servants in our democratic set up and the improvement in the per capita income would be measurement of their duties for which they all unitedly have boosted their emoluments and perks tremendously. They must practice first among themselves as well as among the bureaucrats they control, before they preach the innocent citizens.
■ In USA the Tort Costs are about 2.2. percent of the GDP, which is the highest for any branch of law. The Americans spend more than $300 billion on litigation. There are 307 lawyers for each 1,00,000 Americans. There is separate Bar Association for Tort Lawyers.
■ The subject of 'Law of Torts' is taught in all the Law Colleges of our country. The Indian book on this law authored by Ratanlal, Advocate and Dhirajlal, Barrister-at-Law is more than 100 years old, it was published in 1897 and its 23rd edition was published in 1997.
■ The famous Indian Tort Lawyers were Pandit Motilal Nehru, Mohd. Ali Jinnah, Tej Bahadur Sapru, Sir Hari Singh Gaur who won cases in India even against the British Govt.
■ The success in bank litigations is mostly based on documentary evidence. The trial court or DRT is the best place for such litigations and more so when there is counter-damage claim. Trial court is the court of facts. Higher courts are for law and justice based on facts established in trial court. The approach and strategy should be to establish your facts with the tool of cross-examination with aim and emphasis on admissions so that least matter is left for the discretion of judges. We have expertise for formulating and implementing such strategy offering consultancy from inception to every stage of trial at your door step through your computer any time any where. We even provide instant consultancy on phone as well.
■ Justice is supreme. The whole and sole purpose of all courts including tribunals is to dispense justice. The Supreme Court in S. Nagaraj & Ors. vs State of Karnataka & Anr. [ JT 1993 (4) S.C. 27] has propounded:-
"Justice is a virtue which transcends all barriers. Neither the rules of procedure nor technicalities of law can stand in its way. The order of the court should not be prejudicial to anyone...Even the law bends before justice. .. Technicalities apart if the Court is satisfied of the injustice then it is its constitutional and legal obligation to set it right by recalling its order. .. Rectification of an order stems from the fundamental principle that justice is above all. The Court is not precluded from recalling or reviewing its own order if it is satisfied that it is necessary to do so for sake of justice."
■ The Supreme Court in Ganesh Trading Co. vs Moti Ram [AIR 1978 S.C. 484] has stated:-
"Procedural law is intended to facilitate and not to obstruct the course of substantive justice. Provisions relating to pleadings in civil cases are meant to give to each side intimation of the case of the other so that it may be met, to enable the Courts to determine what is really at issue between parties, and to prevent deviations from the course which litigation on particular causes of action must take."
■The Entrepreneur, industrialist and businessman are the real soul of the wealth generating activities. The presence or absence of the entrepreneur makes all the difference to the dynamism of an industry, and indeed of the whole economy. Please ensure that they are not in trouble otherwise the wealth generation will be in trouble and your lending will sure turn into NPA.
■Be very thorough at the stage of the project appraisal. Once you sanction a project, you create a right for the duty of care for the entrepreneur and as per the law of torts, you cannot withdraw credit without paying compensation for the injury, loss and damages upto the time of payment of damages for the industry and its dependents. If your action is found to be oppressive, arbitrary and unconstitutional with wilful defaults, you may be required to pay aggravated and exemplary damages even for the remotest cause of action for the industry and its dependents. The bank officials may be held personally responsible. The damages may be claimed with interest at monthly rests as well as with penal if there is wilful delay. The counter-damage claims have further legal support as there is no 'no-fault' insurance of the borrower/guarantor as against multiple safeguards for you such as mortgage, guarantee, margin, holding and operating the account in spite of being a interested party, government support etc. One of the greatest flaw is that one of the parties i.e. the bank is also holding the funds and its flow. All these are enough to disturb the principles of justice, equity and good conscience in respect of the other party which is much smaller and weaker compared to you.
■You are aware that the RBI Guidelines are statutory and the same have been held so by the Supreme Court of India. The RBI has issued such Guidelines in respect of sick units and industrial sickness since 1976. The violation of such guidelines amounts to breach of statutory duties resulting into injury, loss and damages. In future you should be careful that no violation of the said guidelines takes place'
■Industrial loans are legally different from personal loans. Being object and purpose oriented they are recoverable only out of surplus generation of running of the industrial unit as shown by you in your appraisal reports. Since entire society, government and RBI is legally involved, your isolated recovery will ultimately prove to be abortive and illegal with the application of law of torts by the borrowers and guarantors.
■The interest rates are continuously falling. In China 4.5% is the lending annual rate of interest to the industry. In developed countries, the bankers are at their toes to watch the account and flow credit automatically as and when needed so that the entrepreneur is not disturbed from his shop floor.
■Public has tasted the fruits of privatization in telecom sector in form of improvement in service, quality, cost and price due to open competition which is utterly lacking in banking sector. Further the performance of the private banks is also far superior. Hence you cannot resist the urgent public demand for immediate privatization. The government and the RBI are under great pressure to improve the performance of the public sector banks. Recent incidence of imposition of penalty of Rs. 36 crores on an Indian Bank by the Fed Reserve of the USA is a pointer to the RBI which has not imposed any penalty since 1976 for numerous violations of the statutory RBI Guidelines. Now such sorry state of affairs cannot go on for ever due to counter-claims and counter-suits in the DRT and civil court due to such violations.
■Please note that your security documents are not the contract documents. The relationship between the banker and borrowers/guarantors is governed by the law of torts. The said security documents cannot have any one sided terms and conditions or against the equity otherwise they will be held illegal turning the lending as unsecured.
■In view of above, running of the industry and a happy entrepreneur is the best and the only security which can alone stop creation as well as growth of NPAs. Rest including coercive legal actions will be a farce bull work without any realization of your over dues. You have now no option but to be business centric rather than bureaucracy centric due to enlightenment of the consumer and globalization of the society. This is a stark reality and a writing on the wall. Your suggestions are heartily welcomed in the interest of desirable team work between industry and bank with of course consumer being the king.
■The Supreme Court vide citation contained in AIR 1982 SC 234 at p. 243 has warned as under:-
"The imperative of equality and development are impatient for implementation and in a rapidly changing society running on the rails of rule of law and operated according to constitutional paradigms, the proprietariate is bound to suffer but the country cannot defer the transformation, because, then, hunger will know no law."
■Kautilya in Arthashastra has long back stated :-
"The fundamental principle of economic activity is that no man you transact with will lose, then you shall not"
Mr. B.S. Malik is a Senior Advocate of Supreme Court and a famous constitutional lawyer with practice of nearly 30 years. He appreciated our articles and his comments were 'master piece' On 11.05.02, Mr. Malik rang us from Chandigarh and had useful interactions on the telephone. We were pleased to know that he is not only regularly visiting our web site every week, he is taking print and studying the content in depth. He further informed that he has started studying the law of torts. He asked us to pay attention to Delhi area, for which he promised all help and cooperation. He very much appreciated the work being done by us. Looking to the keen interest of Mr. Malik, we decided to accord renewed priority to Delhi, Chandigarh and U.P. We have started getting cases from the parties referred to by Mr. Malik. Similar such party from Ludhiana approached us for our legal opinion which we have since rendered.
The Economic Times in its issue dated 4th June 2002, for the first time, dealt with the law of torts vide the news item 'What is the sauce for the goose....' at page 1, and 'The Debate' at page 7, contents of which is exhaustive and self explanatory. If you have any difficulty in understanding the same, you may kindly either speak to us or send an e-mail for clarifications, if any. Some of the politicians, bureaucrates and businessmen have openly violated this law. It was the duty of the advocates, judges and law professors to emphasize application of this law to book the said violators. Had it been done right from the beginning of our democratic era, we would not have such height of corruption, irresponsibility and unaccountability in our society. In the international corruption index of 191 nation, India occupies 171 position. Hence it is a proven fact that our spiritualism and culture has no impact on our corrupt behaviour. Modern life requires application of modern law. It is the only fear of the damages imposed by application of the law of torts can make the bureaucracy more responsible, accountable and less corrupt as proved by the experience in developed countries. As an example, we have applied this law in DRT matters. We have received cases to apply this law against bureaucracy in municipal corporation for illegal demolition of a building, against an airline company for mental torture to passengers, against a public sector company for unnecessary initiating action under sec. 138 of the Negotiable Instruments Act due to dishonour of cheques.
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Application of Law of Torts in claiming Damages from Municipal Corporations for demolition of structures, closure of shops etc:- In many parts of the country, the Municipal Corporations are demolishing structures like shops and houses which existed for number of years. The shops existing for number of years are proposed to be shut down. The affected persons should claim Damages under the Law of Torts, which would be substantial. It is learnt that in Delhi itself about 5 lac shops are to be closed down and about 25 lac persons would be out of jobs. All these persons should file damage suits in the civil court. Since the damages would be substantial, the suits may be filed as Indigent Persons. Since the damages would attract interest, the usual delay by the civil courts will not affect the final outcome. The affected shop owners may discuss the details with us on phone.
Our Articles for Borrowers and Guarantors:- Our articles on DRT matters have been published in the Financial Express. The All India Manufacturers Organisation in its famous web site www.aimoindia.org has reproduced copies of our four articles. These original articles can be searched in the archive of the Financial Express in its web site www.financialexpress.com Two of these articles have been reproduced in other pages of this web site.
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About Us in Brief :- (1) We specialize in DRT (Debt Recovery Tribunal) and NCLT (National Company Law Tribunal) matters. As a whole you may approach us for all DRT Problems and Solutions as well as matters connected with ARCIL i.e. Asset Reconstruction Company (India) Limited, We have a Joint Venture with an America based law firm for various activities like BPO, legal BPO and DRT. The details of the said American firm and the joint venture may be seen at the page - Our US Joint Venture with Anand Ahuja Associates or in www.usindolegal.com (2) For your all problems including those in DRT, please phone us or send e-mail. Please give your contact details along with your problems in brief. As a whole you may approach us for all DRT Problems and Solutions. (2) With our Legal Opinion, you need not worry about the Securitisation Act or other DRT matters or NCLT. Please visit the page Products & Services and Frequently Asked Questions (3) On account of our expertise in the Law of Torts and Banking and experience past 15 years, we can help you to submit suitable defence with winning strategy in DRT cases, Securitisation Act, Guarantors' defence etc. (4) We need only copies of all available documents to render our expert 'Legal Opinion' which will be quite useful and valuable to you particularly in DRT i.e. Debt recovery Tribunal. (5) We have also handled assignments for preparation of damage claims against Electricity Boards, Insurance Companies, Municipal Corporations etc. all on the basis of the Law of Torts. (6) The DRT counterclaims is to be prepared well in advance so that it could be raised at proper time in DRT or other forum to safeguard the securities and assets. (7) Several DRT counterclaims drafted by us are being handled by different advocates at DRT Mumbai, DRT Delhi, DRT Jabalpur etc. Thus DRT advocates are available in these cities. Cases in other Debt Recovery Tribunals are under process. (8) This site is updated monthly mostly on every first Monday of the month or for urgent release on any day with latest material. (9) For further details about us, please visit the page About Us-DRT Solutions As a whole you may approach us for all DRT Problems and Solutions. We hail from the place to which Maharishi Mahesh Yogi and Acharya Rajnish belong and hence this site is dedicated to them.
Our this web site is dedicated to Yoga Rishi Baba Ramdev Ji Maharaj:- Our this web site is respectfully dedicated to Yoga Rishi Baba Ramdev Ji Maharaj whose method of Pranayam has cured even incurable diseases and thus has revolutionized modern medical science. For further details please visit our special page by clicking here Baba Ramdev Ji Maharaj, Yoga Guru, Cure for All Diseases, Medical Science Revolution
Site also dedicated to:- (1) Swami Ramdevji, Acharya Balkishan and their Guru Pradumn Maharaj.
We regularly practice TM and SCI of Maharishi Mahesh Yogi. We also regularly practice Hath Yoga including Pranayam based on Baba Ramdev Ji Maharaj. We daily watch his global TV program on Astha Channel from 05:30 AM to 8AM and 8PM to 9PM Indian Standards Time. On Sanskar channel, we daily view the discourse of Pradumn Maharaj from 4 AM to 5:30 AM. Many chronic diseases such as Cancer, Parkinsons' disease, Polio, Asthma, Hypertension, diabetes etc. have been cured by the said method of Pranayam which can be learnt even by watching his program on TV. Since 30th March '06, we have started practicing Sun Gazing as prescribed by HRM.
(3) Shri Satyanarayan Morya alias 'Babaji' for his praiseworthy service to our nation. Please visit his site www.artistbaba.com
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