DRT Legal Solutions
(Debts Recovery Tribunal Legal Solutions) is an India based
Law Firm specializing in DRT, Securitisation, Sarfaesi, IBC, NCLT, Borrowers, Guarantors in Debts Recovery Tribunals and Defamation Solutions with Damages
Pioneers in Counter-claims and Damage Suits based on Law of Torts and Law of Damages
Phones (India) - Mobile - +91-9691103689, Off. & Res. +91-731-4049358
Home│Contents│Products & Services│Frequently Asked Questions│Useful Article-Borrowers│Useful Article-Guarantors│RBI Guidelines│Notes-Law of Torts│Notes-Damages│MiniArticles-Letters to Editor│Useful Interactions with Clients & Visitors│Securitisation Act-Comments│About Us-DRT Solutions│Useful Tips for DRT Advocates|| 138 NI Act Cheque Dishonour Cognizance Acquittal | NCLT, National Company Law Tribunal, BIFR, SICA | Video Interview - BS Malik, Sr. Supreme Court Advocate│Legal Forum of India│Success & Results of Our Guidance│DRT Orders in favour of Borrowers & Guarantors│NPA, Debt due, Rehabilitation of Sick SME Industries│Our Replies to Queries on Current DRT Matters, Court Decisions etc.│Measure of damages & Calculations under Torts & Contracts│Video Interview - GC Garg, Ex-Senior Bank Official│Solar Healing, Yoga, Projector, Rebirth etc.│Swami Ramdev, Yoga Guru, Cure for All Diseases, Medical Science Revolution│Court Technologies IT Presentation Video Arguments│Archive│DRT Solutions Weekly Mail for Borrowers & Guarantors │ All India DRT Conference 2011 at Indore│Article by Ram Kishan on Management & Technology in Indian Judiciary│SARFAESI Securitisation Securitization Actar SA NPA│DRT Judgments Favourable / Useful to Borrowers │ DRT Solutions - Site Map for Borrowers & Guarantors│Transform India with Modi-DRT Solutions Suggestions│Laughter Yoga by Ram Kishan, Indore│Dr Kataria Indore Visit - Plan, Progress & Record │ Keto Diet Vegan I.F.- Personal Experience Age 79 Yrs
Weekly Mails - 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100 101-110 111-120 121-130 131-140 141-150 151-160 161-170 171-180 181-190 191-200 201-210 211-220 221-230 231-240 241-250 251-260 261-270 271-280 281-290 291-300 301-310 311-320 321-330 331-340 341-350 351-360 361-370 371-380 381-390 391-400 401-410 411-Latest
DRT Solutions Weekly Mail – 164th Issue(2) dated 1st July ’11
(1) Attitude of Executives in India – not bound by any law – proved by Govt. & Police Action on 4th June ’11 midnight
The Executive Action by the Police under the approval of the Govt on the midnight of 4th June ’11 the following facts:-
(a) As per the Constitution of India and the provisions of various existing laws, the said action prima facie is totally illegal.
(b) The Govt through Police not only committed the said illegal act openly, it continues to justify it.
(c) The Govt committed another illegal act by filing a wrong affidavit before the Supreme Court.
(d) The above is borne out of inherent attitude that the Executives in India that they are not bound by any law and hence they are not afraid of any such violations. If the affected person has any problem, he has to go to the Court of Law.
(e) In the Court of Law, the said affected person has to fight using his own money and time. On the other hand, the said Executive will fight using public money and he gets salary during the time he fights such battle.
(f) The said Executive will fight from the lower court upto the Supreme Court using all technical provisions and hence the battle may take years and decades. Hence the Executive is not at all afraid of such violations. That is why he feels that he is not bound by any law.
(g) In USA, all suits are decided in 9 months and no case can be filed in Higher Courts until and unless trial has established the controversial facts. In all cases, the punishment is by way of damages and jail terms and that is why the Executives are always afraid of taking law into their hands as happened on 4th June ‘11’
(h) In Germany and few other nations, no recovery suit can be filed against a unit which is under loss or closed. The unit needs to be brought in healthy state first and then only suit can be filed. In Japan, such legal action is extremely rare. In China, no such legal action is possible. In such nations, running of the unit is paid maximum attention. The industrialist need not leave his unit, the bank and other executives have to visit them to render necessary service. In Japan, the Collector sits at a lower desk and public is given higher seat. Even in British days, the collector when writing a letter to public has to end the letter with ‘Yours most obedient servant’
(i) Any way at present, our country is being ruled by Executives worst than the British days or other countries. Our Executives are not afraid of any law and hence their attitude is that they need not follow any law.
(j) We do not know what trial will be conducted by the Supreme Court which has initiated a suo motu action. In our view since all the facts are available in the media video clips, the Supreme Court may come to the findings that the entry of the Police itself was illegal and unwarranted, the sufferers must be given all compensation, the activity on the Ramlila ground be allowed to be renewed at the cost of the Executives and the Govt. All persons who ordered and approved such action must be punished. If such action is not possible, the Govt must tender its resignation.
(k) We are curiously watching whether our Constitution is in working condition or not. Till such time, we need to take following precautions.
(a) Since we are concerned with the defence of borrowers and guarantors in DRTs, accordingly we are highlighting the precautions for them.
(b) The Bank Officials and the Judges are the Executives. We should never converse with them orally.
(c) If there is any oral interaction, it must be recorded with least lapse of time which they must approve.
(d) The said Executives are not to be trusted as they can change anytime to suit to their interest.
(e) The Constitution and provisions of laws must be strictly applied when dealing with the said Executives.
(f) One can not leave the things fully to intermediate agents liken the advocates. The litigants or his competent and trusted representative other than the advocate must always be present in the court of law. All proceedings must contain the full record and certified copies be obtained periodically.
(g) One should have sufficient financial resources to fight the battle upto the Supreme Court.
(h) All orders must be minutely examined and if there is any defect, it should be corrected by the established process of Review and Appeal.
(i) All orders must contain all the points pressed during the arguments otherwise the famous SC verdict in the matter of Mohd Akram vs Chief Election Commissioner must be applied.
(j) Keeping all the above, we have been emphasizing past more than 10 years on our web site as well as in all the discussions and conferences that the legal battle in India is long drawn, time consuming and highly expensive.
(2) An Important Supreme Court Judgment relating to Sec 14 of the Securitisation Act – Action u/s 14 is questionable u/s 17
The Supreme Court of India in the matter of Kanaiyalal Lalchand Sachdev vs State of Maharashtra decided on 07.02.11 has ruled that the order of the Magistrate u/s 14 can be questioned before the DRT u/s 17 of the Act.
It is relevant to note that we have been advising our clients that caveat should be filed in the Court of DM or CMM so that opportunity is extended during the proceedings in the said court. During the said opportunity, all the illegalities of the bank as well as the ‘No Debt Due’ on account of the loss and damages be emphasized and pressed. The Magistrate must cover all these points in his order. Despite these if the order is adverse, appeal should be filed u/s 17 in DRT.
DRT Solutions Weekly Mail – 163rd Issue dated 24th June ’11
(1) Startling Facts about the Ram Lila Maidan Episode – Defeat of the Government
The following are the startling facts about the Ram Lila Incidence happened on 5th June 2011 early hours:-
(a) Past 9 months, Swami Ramdevji toured all the States of the country covering one lac kms. It was non-stop having 2 to 4 functions every day without any break. He had direct contact with nearly ten crore people mostly villagers. Perhaps in the world history such tour of this magnitude has taken place. On account of such mass following the Govt became damn scared. During this period, there was no threat to his life.
(b) Several months in advance, he declared about the ‘Anshan’ by one lac persons at Ram Lila Ground’ on 4th June 2011. This was openly shown in the posters put up in and around Delhi. Even a child was fully knowing about the said Anshan – A peaceful protest. Such Anshan again has no parallel in world history. Naturally the Govt was highly scared.
(c) On 1st June when Swami Ramdevji arrived in Delhi, 4 Ministers of the government went to the airport to receive him. Further there was discussions at the airport itself for nearly 3 hours. The said 4 Ministers included Seniormost Mr. Pranav Mukherjee. These Ministers were aided by Principal Secretary and other Secretaries. Thus an army of Ministers and Secretaries were counteracted by Swami Ramdevji alone. He was well prepared with facts and figures on Black Money and Corruption based on World Bank, Transparency International, RBI etc. Mr. Ved Pratap Vaidik, a senior journalist who accompanied Swami Ramdevji in a video stated that Ramdevji was alone sufficient to deal with the said army of Ministers and Secretaries. Such welcome treatment has not been given to even to Mr. Obama, the President of America. As a whole, Swami Ramdevji was most powerful person in the eyes of the Govt. In fact the Ministers intended to please Swami Ramdevji but he was least affected as he was more bothered about the national issues of corruption and black money rather than getting pleased by the Ministers.
(d) On 3rd, Mr. Kapil Sibbal played a mischief by taking a letter from Mr. Balkrishnaji that Govt accepts all their demands and the Anshan will be broken by 6th June. He said that since Congress Party has ridiculed the Minister and to save their faces, he desired to have such letter for showing to the Prime Minister. Both Swami Ramdevji and Balkrishnaji are simple hearted persons and they gave such letter.
(e) The Ministers tried their best but could not influence Swami Ramdevji and hence the said letter was shown to media by Kapil Sibbal. Thus there was clearcut breach of trust and hence Swami Ramdevji hardened his stand.
(f) The talks continued and again Govt sent another letter at 11 PM on 4th June stating that Govt accepts all their demands and stand committed to fulfil the same. It was just as simple reotoric. There was no effect of such letter on Swami Ramdevji. Balkrishnaji said that suitable reply will be sent in the morning.
(g) Thus Govt failed in all their scheming moves. Sensing that on 5th June, Anna Hazare was to meet Swami Ramdevji and it would be big showdown. Further being Sunday, the entire nation will view such showdown on TV, the Govt was left with no option to break the law. Hence it was a great defeat of the Govt. It is said that even schemes were prepared to kill Swami Ramdevji.
(h) The Govt is all powerful. It has huge Army, Police and Para-military forces. It has full control on the media and judiciary. It has all experts on all types of battles. It has no problem about financial resources. But such powerful Govt, became mad to take action at midnight to attack innocent old men, women and children who were deep in sleep and were fasting not for any personal cause. They were not stopping any traffic, not stopping any train, were not damaging any public property.
(i) Swami Ramdevji offered to arrest him peacefully but the Govt desired to send the mass of one lac people out of Delhi and hence they resorted to create scare by teargas shelling and water jetting and the innocent people were made to leave not only Pandal but Delhi.
(j) The best part is that Swami Ramdevji saved himself and now disheartened the Govt as to why he is alive. Swami Ramdevji was persuaded to live as otherwise the Govt acting in most criminal bend of mind would have been successful.
(k) Swami Ramdevji is back again with renewed spirit. Daily on Ashtha TV, he is dealing with all the above facts from 7AM to 8AM and 8PM to 9PM. His Yog Shivir will be resumed from 1st July. His plans for overseas Yog Shivir will be carried out. When he returns, he will resume his massive touring of the villages.
(l) He is supporting the proposed Anshan of Anna Hazare from 16th August.
(m) The persons taking part in Anshan from 16th August have been told to come prepared for the Police action just like the incidence of Ram Lila Maidan. If they are jailed, there will be country wide protest to go to Jail.
(n) All the videos and visuals are being recorded by the public and these will be used at the time of elections. Thus the forthcoming General Election will prove the mandate of the people i.e. the famous saying by a Supreme Court of USA and recalled by Justice Santosh Hegde – ‘ The highest office in a democracy is held by citizens’
(1) Harrowing Experience of A Borrower – Unprofessional Treatment by Advocates - Remedy
On 20th June ’11, a small borrower narrated his harrowing experience. He filed his appeal u/s 17 of Securitisation Act in DRT Chennai. His advocate assured him that nothing will happen to his property till the said appeal is decided. When the case proceeded, the advocate told the borrower that the court has decided to grant stay provided Rs. one lac is paid to the bank. The borrower paid the said amount to the bank. The advocate continued telling the borrower that the case was going on as usual in the DRT. After about 7 months, a party came to the borrower to vacate his house as it was sold to him. When the borrower went to DRT, he was told that:-
(a) The advocate never attended DRT.
(b) There was no such order for payment of Rs. one lac to the bank.
(c) The case was decided ex-parte.
(d) Auction was held and the house was sold.
On further investigation, the borrower found from the bank accounts that out of the said Rs. one lac, Rs. 10,000=00 were paid to the Advocate. When the borrower told all these things to the Advocate, the said Advocate requested the borrower not to point out these facts to the DRT. Anther Advocate took up the case and with dilly dally took lot of time and then finally said the limitation for filing any appeal to DRAT was over. Obviously, the second Advocate happen to be in league with the first Advocate.
At this stage, the party rang to us. We advised him to write everything in his own language, go to DRT and handover the write up to the Judge personally stating as to how he was victimized by the Advocates.
To avoid incidents as above, we have been telling our clients to present in all proceedings, to take copies of the court proceedings, to be in touch with us just after the proceedings and before the proceedings. We all along emphasize that the stake of the client is highest and he himself has to understand everything from us and then discuss the matter with the advocate so that there are no chances of anybody misleading or deceiving. On all dates, we must ensure proper recording of proceedings. Further always written arguments be submitted. All orders must contain all the points placed during arguments. The pleadings in all submissions including interim applications must be self contained and one must prepare sufficiently in advance. With such advice, many of our clients changed the advocates till desired mode of working is achieved.
DRT Solutions Weekly Mail – 162nd Issue dated 17th June ’11
(1) Inherent Attitude of Public Servants – Amply Illustrated by Recent Public Movements
The recent public movements i.e. by Anna Hazare and Swami Ramdev have validated our long time contentions as under:-
(a) Moghul and British attacked other countries just as thieves attack prosperous people to loot them. India was a prosperous society and hence the Moghul and British came to India to rule with a view to loot and plunder the country as it was a rich nation. The British created official organization of babus i.e. public servants to accomplish their loot and plunder. Lord Macaulay designed the education system to create army of such public servants.
(b) The said public servants had to be obedient to their masters i.e. their seniors and British Officers. More than 150 years of British rule i.e. spanning several generations created mental make up of the said public servants to rule over the public.
(c) British established the Judicial System to decide the disputes between the public but none can fight against the Govt., its agencies and public servants.
Such approach made the people in power and the public servants not to be afraid of the rule of law or such people and servants can indulge in open violation of law.
We got freedom. A committee under the chairmanship of Ambedkar and created our Constitution by taking the best parts of various Constitutions existing at that time in the world. They said that we have a created a world class Constitution.
The Preamble in our constitution starts with
“We, the people of India - - - to secure to all its citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and opportunity;
FRATERNITY assuring the dignity of the individual and the unity of the Nation;
- - do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSITITUTION.”
(k) The Indian Police was quite brutal with the old persons, ladies and even children.
(l) The said persons were deep in sleep.
(m) The said persons were fasting since morning.
(n) They came to Delhi from various cities of India. It was gathering of about one lac persons.
(o) All of a sudden, at about 1 AM Indian Standard Time, the Indian Police (about 15,000 in numbers and armed) wakes them up, orders them to leave the Pandal, beats them with lathis, scare them with tear gas shells and water jets and made them to run out of Delhi.
(p) Many women were mishandled, their clothes were torn, some of them were made naked and no wonder some might have been raped.
(q) Despite injuries, the Police chased them out of Delhi. They were asked to board whatever train was leaving Delhi.
(r) It is said that about 5000 persons may be missing.
(s) The Indian Media is not broadcasting the horror story of sufferers and missing persons.
(t) Such brutal and heinous action by Police on a large sleeping public has no parallel in Human History. Even in Mahabharat days, no one was attacked in night. Even in British days no such police action was done in night. All warrants for arrest were served during day time with due notice. It is to be noted that the persons were sleeping. They were fasting. They did not have any personal cause. They were not obstructing any train or were not blocking any road. They did not damage any public property. They had fundamental rights. Duty of Police is to protect the citizens. Such brutal action has been condemned globally.
(u) Police told that they had done very little otherwise the orders from the higher ups were for much stronger, tortuous and horror action so that none should dare to come against the government.
(v) It is a matter of record that 4 Top Ministers of Govt of India went to airport to receive Baba Ramdev and had series of dialogues from 1st June to 4th June and accordingly the activities at Ram Lila Ground were to continue upto 6th June if the Govt heeded to all the demands. On the 1st day of fast i.e. 4th June at 11:30 PM, Baba Ramdev was hoodwinked with a simple promise letter. Within half an hour he and his one lac devotees who were sleeping were asked to leave Delhi immediately. Under the Constitution, proper notice is to be given so that if required the affected person can approach to Court of Law. Police can not enter the premises at night. Male Police can not touch ladies and children. Such blatant and open violation of law by Govt of India makes the existing Govt non-existent. Country is now virtually being ruled by Goonda elements. Such persons can go to any extent. They are all out to protect their ill gotten black money. They don’t want to stop corruption. They won’t allow public to speak anything against them otherwise they will crush and destroy such opposition. When they can do so with a powerful person like Baba Ramdev, ordinary citizen can not have a voice and is living under conditions worst than British days.
(w) The problems are more difficult and complex to solve, as the British could be made to leave the country but the Netas and Babus can not be driven out. The can misuse the law to rule over the country. They will use the tool of law and police to create scare among the masses. They will not allow any expression of dissent. They don’t want anyone to create hurdle in their amassing the black money. They don’t want to take action against the corrupt Netas and Babus. They don’t want the Judiciary to implement the Constitution.
(x) Under the above facts and circumstances, the attitude of public servants in banks and judiciary will never change. They will help the banks and public servants in banks. They will act against the public i.e. litigant borrowers and guarantors.
(y) Keeping the above state of affairs, we have been advising the Borrowers and Guarantors to be cautious about the Babus in Banks, Financial Institutions and Judiciary. That is why we have been advising to concentrate on the thorough pleadings and perfect trials so that there is enough records of the babus in banks and Judiciary.
(z) The fight is now slowly coming before the public by the movements by persons like Anna Hazare and Baba Ramdev. It took more than 150 years to drive away the British. It is not known how much time it will take to make the country free from the Netas and Babus.
(aa) We have now advance tools of technology. There are more than 70 crores of mobile phones. The public must make video record of all the talks with the Netas and public servants. Such video clips be used at the time of election.
(bb) The litigants in DRTs may make such video records in the banks and court rooms. These video clips are the documents to be made part of the court records.
(cc) The public must learn to record the TV Broadcast so that the clips be used at the time of elections.
(dd) On account of modern technology of video recordings, the Netas and Babus will not be able to fool the public.
(ee) The platform of the media will slowly bring about the constitutional values and with passage of time, the attitude of netas and babus will change.
(ff) With passage of time, the parliament will have better stuff working for the nation and not for personal goals. Then only the British Laws will be amended for Democratic Nation. The wrong doers whether Neta or Babu will be quickly caught and punished. Then only we will be called as a free nation. The battle till then is difficult, time consuming, painful needing lot of sacrifice. Are you prepared?
(2) Creditor can not obtain forcible possession through police : High Court
The following material has been sent to us by our Associate Mr. N.K. Sharma, ex-GM (Law):-
In its recently reported decision, Clarity Gold Pvt. Ltd. v. State Bank of India (AIR 2011 Bom 42), the Bombay has declared that "no secured creditor can by seeking assistance of police machinery unilaterally carry out the eviction of the borrower and take over forcible possession of the secured asset". The High Court was dealing with a matter relating to debt recovery wherein it had been alleged that the possession of the assets with the help of the police without orders of the Court. While the High Court did not rule on the factual aspect, it indeed declared that it was no permissible for the creditors to obtain possession through use of force.
The High Court inter alia observed as under;
17 On behalf of the Petitioners, it has been urged that in the present case possession was taken unlawfully from the Petitioners and forcibly without recourse to the provisions of Section 14.
18 On 23 July 2010 the Bank addressed a letter to the Commissioner of Police, Mumbai stating that under Section 13(4), its authorised officer was taking necessary action in an area falling under the jurisdiction of the Malabar Hill Police Station. A request was made in the letter to direct the Police Station to provide constables for the protection of the authorised officer of the Bank in discharging his official duties under the Act. This was followed by a letter dated 23 July 2010 to the officer incharge of the Malabar Hill Police Station. The letter also recorded that the Bank had authorised an enforcement agency to assist and take all necessary actions under the Act. At the foot of the letter, there is an endorsement to the effect that on 27 July 2010, police bandobast should be provided. After possession was taken, on 28 July 2010 a police complaint came to be lodged by the Manager Accounts and by the employees of the Petitioners. The complaint was to the following effect:
“We hereby place on record that at 3 pm today some nearly 20 people along with your API Mr. Machinder, Head Constable Mr. Patil and Constable Mr. Bhosle forcefully barged into the above mentioned address and started abusing and using the bad words. On enquiry they were telling that the State Bank of Indore have Court order to take forceful possession of the flat. We told the persons that the owner was not present and we have to take instructions. We also asked them to show the Court order to which they refused and then they started using bad language and started assaulting. Some of the unidentified person from Bank assaulted us, slapped us pushed us and they used the force and pushed us out of the house. The police was seeing this whole incident but they were standing still and did not take any action When we came to the police station the duty inspector has refused to take our complaint of physical assault and forcefully taking the possession of flat without the due of process of law.”
19 The Tribunal came to the conclusion that the Bank had taken forcible possession of the property without seeking recourse to an order of the Chief Metropolitan Magistrate under Section 14. Now, under Section 14, where the possession of any secured asset is required to be taken by the secured creditor, the secured creditor may make request in writing to the Chief Metropolitan Magistrate or the District Magistrate concerned to take possession. Thereupon, the Chief Metropolitan Magistrate or the District Magistrate is empowered to take possession of the asset and documents relating thereto and to forward them to the secured creditor. Under subsection (2) the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use or cause to be used such force as may in his opinion be necessary. Section 14 of the Act is an enabling provision under which the secured creditor is empowered to seek recourse to the Chief Metropolitan Magistrate or, as the case may be, the District Magistrate for the purpose of taking possession. Though section 14 is an enabling provision, it will be wholly impermissible for a secured creditor, despite the provisions of Section 14, to take the law into his own hands and to forcibly evict a borrower from the secured asset. Our legal system is governed by the rule of law. If the borrower hands over possession voluntarily to the secured creditor in pursuance of a notice under Section 13(4), it would be open to the secured creditor to take possession. But, if possession is not voluntarily handed over, the secured creditor cannot take the law into his own hands and secure vacant possession by taking recourse to the police machinery. In such an event, the only remedy that is available is to seek an appropriate order from the Chief Metropolitan Magistrate, or as the case may be, the District Magistrate.Parliament has specifically authorised in subsection (2) those authorities to take or cause to be taken such steps and use or caused to be used such force as may be necessary. Authorisation of the use of force for taking possession is therefore a matter which lies in the jurisdiction and power of the authorities prescribed by Section 14. No secured creditor can by seeking assistance of police machinery unilaterally carry out the eviction of the borrower and take over forcible possession of the secured asset.
20 Having said this, it is clear from the record, that the Debt Recovery Tribunal did, as a matter of fact enter a finding of fact that possession was forcibly taken over by a secured creditor in this case. However, the Tribunal clarified that it was not resting its decision on that finding, since quite independently the Tribunal had come to the conclusion that the notice of possession and the sale notice were invalid. When an Appeal was carried by the secured creditor, the Appellate Tribunal reversed the finding of fact of the Tribunal on issues pertaining to the service and delivery of the possession notice under Rule 8(1) and the publication of the possession notice in the newspaper under Rule 8(2). The Appellate Tribunal did not consider the correctness of the finding which was arrived at by the Tribunal that forcible possession was taken by the secured creditor.
21 Whether forcible possession was taken by the secured creditor is essentially a question of fact to be determined on the basis of the material on the record. We are of the view that having regard to the parameters of the jurisdiction under Article 226 of the Constitution, it would only be appropriate and proper if that question is left to be decided by the Appellate Tribunal which has a fact finding jurisdiction. There being no finding of the Appellate Tribunal in that regard, we consider it appropriate and proper to remit the proceeding back to the Appellate Tribunal only on this aspect.”
DRT Solutions Weekly Mail – 161st Issue dated 9th June ’11
(1) Latest ‘Directions for Sale’ laid down by Supreme Court
On 14.03.11 the Supreme Court in the matter of KFC (i.e. Kerala Financial Corporation) vs Vincent Paul & Another has laid down vide following extract, the ‘Direction for Sale’ of the properties by the financial institutions and banks:-
(i) The decision/intention to bring the property for sale shall be published by way of advertisement in two leading newspapers, one in vernacular language having sufficient circulation in that locality.
(ii) Before conducting sale of immovable property, the authority concerned shall obtain valuation of the property from an approved valuer and in consultation with the secured creditor, fix the reserve price of the property and may sell the whole or any part of such immovable secured asset by any of the following methods:
(a) by obtaining quotations from the persons dealing with similar secured assets or otherwise interested in buying such assets; or
(b) by inviting tenders from the public; or
(c) by holding public auction; or
(d) by private treaty.
Among the above modes, inviting tenders from the public or holding public auction is the best method for disposal of the properties belonging to the State.
(iii) The authority concerned shall serve to the borrower a notice of 30 days for sale of immovable secured assets.
(iv) A highest bidder in public auction cannot have a right to get the property or any privilege, unless the authority confirms the auction sale, being fully satisfied that the property has fetched the appropriate price and there has been no collusion between the bidders.
(v) In the matter of sale of public property, the dominant consideration is to secure the best price for the property to be sold. This can be achieved only when there is maximum public participation in the process of sale and everybody has an opportunity of making an offer. It becomes a legal obligation on the part of the authority that property be sold in such a manner that it may fetch the best price.
(vi) The essential ingredients of sale are correct valuation report and fixing the reserve price. In case proper valuation has not been made and the reserve price is fixed taking into consideration the inaccurate valuation report, the intending buyers may not come forward treating the property as not worth purchase by them.
(vii) Reserve price means the price with which the public auction starts and the auction bidders are not permitted to give bids below the said price, i.e., the minimum bid at auction.
(viii) The debtor should be given a reasonable opportunity in regard to the valuation of the property sought to be sold, in absence thereof the sale would suffer from material irregularity where the debtor suffer substantial injury by the sale.
(1) It is interesting to note that this case relates to taking over the firm on 11.09.87 (24 years back) and in this judgment, the Supreme Court has found that the KFC has not followed proper procedure for sale and hence the sale was set aside. KFC was asked to return the deposit given by the buyer with interest @9% within 30 days from the date of deposit till it is repaid. Thus despite litigation past 24 years, the taking over of the assets and sale is still could not be done.
(2) The above ‘Directions for Sale’ are to be scrupulously followed. The borrower should be very vigilant and alert and if there is any violation, it should be raised before DRT and contested till correct decision is obtained. Proper tools of Review, Appeal, Application u/s 151 of CPC should be used in DRT to highest court. If all these measures are taken, it will be very difficult for the financial institutions and banks to take over and sale any property. It will be further extremely difficult when counter-claim or damages have been filed as first the condition of ‘No Debt Due’ is to be decided. That itself will take several years. Our intention is not to cause delay but to achieve justice.
(3) We have repeatedly expressed past more than 10 years that if pleadings are prepared perfectly and case is fought perfectly on every date, the institutions and banks can never win as they commit several wrong doings.
(4) In the above case, the party did not file any counter-claim or damages. Had he done so, he would have been in much stronger position and ultimately would have won the case.
(5) In view of above only we have been repeatedly emphasizing that the litigation in Indian Courts are long drawn, time consuming and expensive as the institutions and banks will fight upto the Supreme Court even for petty matters. At present 70% cases pertain to such litigations only. Judiciary says that there are more than 3 crore cases pending and it will take 320 years to clear the pendency.
(6) In fact our entire democracy is failing because we continue to use the same system established by the British. The system was to loot the country and keep the public under rule. Just after getting independence, had there been proper (i.e. of democratic setup) rule of law, cases could have been decided quickly (In USA all suits are decided within 9 months) and guilty punished. Since the Judicial wing is so inefficient (taking decades), the corruption and black money continue to grow, no body is afraid of violations of law and those occupying the chairs of ruler will continue to loot. Hence the most important issue is ‘Earliest possible Judicial Reforms’ that alone will solve various problems like black money, corruption, police excesses etc.
(7) There is no shortcut to ‘Proper Judicial Reform’ We may learn from the work done and experience gained in USA and UK where they have involved public and applied modern management and technology. Since in our country the Ruler is not doing with application of mind and is against involving public, the public has started forcing it to do so.
(8) We have been dealing with the above in a modest way in our web site since 2001, news paper articles in 2001, conferences in 2007, 2008 and 2011 and weekly mails since 2008.
(2) Our News Feeds in Global Cyber Media
We have published our personal views in form of news feeds in the following global cyber media. The said news feeds are also given below:-
Posted on 06.06.11 at 9:30 PM
Brutal Police Action in India - There were more than 6000 armed policemen. At 12:30 PM in the night of 5th June '11, they entered the 'Ram Lila Ground' in Delhi where nearly 100,000 persons including saints, old, women, children were deep in sleep. They were on fast since morning and came from distance places from all over India. All of a sudden the said police men started beating, abusing and asking these persons to vacate the place immediately. It was a brutal and inhuman lathi charge, tear gas shelling and water jet force were mindlessly used. Incidentally more than 50 media (electronic) persons were also sleeping there. So entire worst incident of its kind was video recorded from all angles. Live telecast was made and is being repeated since then in all TV Channels in India. It was worst than the British days. Old persons, ladies and children were beaten. Clothes of many ladies were torn and removed making them naked. They were made to run to railway station and forced to board in any train. Some of sick persons were forcibly discharged from the hospitals. About 5000 persons are missing. There is wide coverage by the TV Channels for more than 24 hours, there is no effect on the Indian Govt. The reaction of Mr. Manmohan Singh is as if nothing happened. He is the person solely responsible for such police action on fasting persons and worst treatment because he has not taken any action so far. Even in Mahabharat days, there is no attack during night. Even in British days, advance notice is given for such police action. There is country wide agitation and this is the beginning of fall of Mr. Manmohan Singh and his corrupt government. This news feed is based on various videos recorded from different TV news channels. We have kept copies of the said video clips.
Posted on 07.06.11 at 6:37 AM
Shame Manmohan Singh. Attacking mob of fasting old, women and children in sleep at 12:30 PM in night has no parallel even in Mahabharat or British days. Is it their crime to agitate in peaceful manner for important national issues in a democratic country? If you feel any responsibility, please resign immediately.
DRT Legal Solutions
Attorneys at Law of Torts, Injury and IPR Claims
Home│Contents│Products & Services│Frequently Asked Questions│Useful Article-Borrowers│Useful Article-Guarantors│RBI Guidelines│Notes-Law of Torts│Notes-Damages│MiniArticles-Letters to Editor│Useful Interactions with Clients & Visitors│Securitisation Act-Comments│About Us-DRT Solutions│Useful Tips for DRT Advocates|| 138 NI Act Cheque Dishonour Cognizance Acquittal | NCLT, National Company Law Tribunal, BIFR, SICA | Video Interview - BS Malik, Sr. Supreme Court Advocate│Legal Forum of India│Success & Results of Our Guidance│DRT Orders in favour of Borrowers & Guarantors│NPA, Debt due, Rehabilitation of Sick SME Industries│Our Replies to Queries on Current DRT Matters, Court Decisions etc.│Measure of damages & Calculations under Torts & Contracts│Video Interview - GC Garg, Ex-Senior Bank Official│Solar Healing, Yoga, Projector, Rebirth etc.│Swami Ramdev, Yoga Guru, Cure for All Diseases, Medical Science Revolution│Court Technologies IT Presentation Video Arguments│Archive│DRT Solutions Weekly Mail for Borrowers & Guarantors │ All India DRT Conference 2011 at Indore│Article by Ram Kishan on Management & Technology in Indian Judiciary│SARFAESI Securitisation Securitization Actar SA NPA│DRT Judgments Favourable / Useful to Borrowers
Contact Information :- Phones (India):- Mobile- +91-969-1103689, Off. & Res. +91-731-4049358,
Popularity of our web site :- The key word for search of our website is 'drt' or any phrase commencing with 'drt' We are on the top in Google Search for 'drt' among 28,60,000 results globally. In most of the search engines like yahoo, msn, google, excite, altavista, mamma, alexa etc., To verify, you may visit www.yahoo.com, www.msn.com, www.rediff.com, www.indiatimes.com, www.altavista.com, www.google.com, www.excite.com, www.hotbot.com, www.123india.com, www.aol.com, etc. Our reference appears in www.economictimes.com, www.amazon.com, www.financialexpress.com, www.lawcrawler.com, www.findlaw.com, www.law.com, www.supremecourtofindia.com, www.supremecourtonline.com,
(2) We have created a separate web site www.usindolegal.com which deals exclusively with our US joint venture enterprise for activities like BPO, legal BPO, DRT etc. This site has started appearing in the search results of Google, Mamma, Alexa and Yahoo.
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.
Useful link www.WorldVideoBusiness.com :- WorldVideoBusiness-WVB® is a business to business e-marketplace source of international trade leads, and tender opportunities from companies and government organizations around the globe.
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
Disclaimer:- We have no branch or setup other than at Indore. It is observed that some persons are using name of our firm as well as name of our web site. We have not given any such authority to anyone to do so. Under such facts and circumstances, if anybody suffers any loss, we shall not be responsible. If such instance comes to notice of someone, we may kindly be informed.
Last Modified:- Please see the top of the Home Page
Copyright © 2001-2022 - DRT Legal Solutions, India. All rights reserved.