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 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
Contents of the most of the letters below will be
useful in framing legal defence in DRT as well as against the Securitisation Act
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
ramkishan@drtsolutions.com
Subject wise Classification & Reach:-
To reach the text, please click on the dates
of publication as under:-
(1) Lenders' Liability :-
19.12.02, 10.12.02,
7.12.02, 5.12.02, 4.10.02
(2) Counter-claim :- 19.12.02,
7.12.02, 5.12.02,
(3) Securitisation Act :-10.12.02,
7.12.02, 5.12.02,
5.8.02, 24.07.02,
20.7.02
(4) Law of Torts :- 19.12.02,
10.12.02,
7.12.02, 5.12.02, 19.3.02,
7.8.01
Note:- If you desire to go to full 'List of Mini
Articles' please click here
Introduction:- We have been interacting with
industrialists, bankers, advocates, judges, experts in bank litigations, authors
of books and similar concerned authorities throughout the country past more than
13 years.. Our articles on Industrial Sickness date back to 1989 and thereafter.
We have been active on the court rooms since then. The practical knowledge and
experience thus gained equips us to render legal opinion or express our views instantaneously on the
current topics relating to DRT, Securitisation Bill, bank litigations, Bank
documents, counter-claims, banking,
industrial sickness, BIFR and all related legal matters. Subsequently
after publication of my two articles in the Financial Express i.e. first 'Who's
afraid of debt recovery tribunals?' (FE dated 20.6.01, copy
available in one of the web pages of this site, if you desire to read the same,
please click
here
) and second 'Debt Recovery Tribunals: There's a way out for
defence of guarantors' (FE dated 5.7.01, copy available in one of the
web pages of this site, if you desire to read the same, please click
here ) We received tremendous response to these articles
including several queries. We have tried to reply such queries in Our
following Mini Articles which were published in the Financial Express in form of
Letter to the Editor. For your
convenience, you can click the body of the chosen title if you desire to read
the text. The bold title were given by the Financial Express due to its being
prominent and current subject:-
List of Mini Articles
Note:- (1) If you desire to
go to top of the page, please click
here
(2) If you desire to read the text of any or more of the following mini articles, please click on the body of
the relevant title
Date published
Title
(01) 15.06.01
Good Amendment
(02) 07.08.01
Recourse to Law of Torts
(03)
21.08.01
Are DRTs
working well?
(04) 28.08.01
Defiant banks, arrogant
babus
(05)
06.09.01
Reviving sick cos through tribunals
(06) 11.09.01
Implementation holds the key - II
(07) 14.09.01
Old wine in reSICAled
bottles
(08) 01.10.01
Private vs public banks
(09) 03.10.01
Fighting corruption
(10) 11.10.01
Court versus Tribunal
(11) 15.10.01
Access sought for DRT route
(12) 18.10.01
Compromise route is sensible
(13) 20.10.01
FIs at crossroads
(14) 24.10.01
Strength of mind
(15) 27.10.01
Warning signs of SSI sickness
(16) 31.10.01
Backlog in lower courts
(17) 03.11.01
Drive out Satans
(18) 12.11.01
Wilful defaulters
(19) 13.11.01
Sick companies
(20) 20.11.01
Stand-still recoveries
(21) 23.11.01
Rule of law
(22) 01.12.01
Unlikely revival
(23) 05.12.01
Legal reforms
(24) 19.12.01
Chinese model
(25) 20.12.01
Back to 1991
(26) 26.12.01
Legal reforms in banking
(27) 29.12.01
Legal conduct
(28) 03.01.01
Going solo makes sense
(29) 10.01.02
Silver lining
(30) 11.01.02
Enter the dragon
(31) 17.01.02
Filip to industry
(32) 21.01.02
Success needed in banking too
(33) 22.01.02
Fear is the key to governance
(34) 24.01.02
SBI's sorry state of affairs
(35) 28.01.02
DRT litigations
(36) 30.01.02
Reviving sick SSIs
(37) 31.01.02
Agenda needed for good governance
(38)
02.02.02
Beating about the bush
(39)
16.02.02
Free entrepreneurs
(40)
19.02.02
PSBs need privatisation
(41)
27.02.02
Small Sector's Sorry State
(42)
15.03.02
NPA Recovery And Growth
(43)
19.03.02
Law Of Torts
(44) 21.03.02
Wrong Move
(45) 30.03.02
Another Bank Strike
(46) 30.05.02
Meagre Debt Recovery
(47)
20.06.02
Why Blame DRTs Alone
(48)
22.06.02
Best Mode Of Taming NPAs
(49)
25.06.02
DRTs For Big Loans
(50) 26.06.02
Bankers' Wrongdoings
(51) 29.06.02
Ineffective DRTs
(52)
04.07.02
Way To Go With E-court
(53)
13.07.02
Unending Saga Of Scams
(54)
20.07.02
Inequitous
Ordinance
(55) 24.07.02
Debt
Ordinance Plan
(56) 05.08.02
Empowering Lenders - Letter on
Ordinance
(57) 30.08.02
NPA Burden
(58)
18.09.02
IT For Legal Community
(59) 20.09.02
Modern Law Schools
(60)
04.10.02
Lenders' Liability Bill
(61)
11.10.02
Stalled Debt Recovery
(62) 28.11.02
Debt Definition
(63) 02.12.02
DRTs' Performance
(64)
05.12.02
Real Wilful Defaulters
(65)
07.12.02
Lenders' Liability
(66)
10.12.02
When Lenders Act Tough
(67)
19.12.02
Weak Ground
(68) 23.12.02
Petty Corruption
(69)
26.12.02
Blow To India's Pride
(70)
30.12.02
Banking Reforms
(71) 26.03.03
Go by Guidelines
(01) The
following our Mini Article was published in The Financial Express dated 15.06.01
page-6 in the column 'Letters to the Editor'
Good Amendment
In order to provide relief to genuine borrowers at the insistence
of the Supreme Court of India, the central government has already amended the
Debt Recovery Act. The said borrowers can now raise their counterclaims against
the lending bank if there is any wrongdoing such as breach of statutory duties
as laid down in Reserve Banks guidelines or breach of duty of care.
In fact a small scale industrial unit with bank borrowings of Rs
17 lakh had already filed a counter-damage-suit of Rs 29 crores against a
nationalized bank based on the law of torts and the law of damages and
compensation. On account of such well defined legal provisions, bank borrowers
need not be afraid of Debt Recovery Tribunal anymore.
Ram Kishan
On e-mail
[Back to Top]
[Back to above List of Mini Articles]
(02) The
following our Mini Article was published in The Financial Express dated 07.08.01
page-6 in the column 'Letters to the Editor'
Recourse to Law of Torts
APROPOS the article, 'Public FIs dragging the
economy down' by P N Vijay, (FE Aug 2), whatever be the solution, serious
thought is to be first given to the reform of the consciousness of the
bureaucracy in the government and in banks Including other instrumentalities.
The said bureaucracy seems totally free of any
responsibility or accountability. The only way to correct their misconception
and improper conduct is through a possible recourse to the Law of Torts by the
public. According to this law, nobody has the right to injure others
intentionally or innocently, failing which compensation is recoverable.
The victims of banks and the Unit Trust of India
should file their damage suits against the said wrong doers in civil courts
under the Law of Torts claiming compensation for the injury, loss and damages. A
scare of damages alone will make the concerned bureaucracy sit up, stop talking
and instead concentrate on work sincerely with responsibility and
accountability. Any further delay will only spoil the future solutions whether
through the means of directed economy or market economy.
Ram Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(03) The following our Mini Article was published in The
Financial Express dated 21.08.01 page-6 in the column 'Letters to the Editor'
Are DRTs working well?
APROPOS the news Item 'Banks
recover Rs 2,583 crore through DRTs (Aug 17), it is stated therein that the
cumulative amounts under the OTS (one time settlement) system for all state- run
banks stood at Rs 2,111.37 crore at end - June 2001. Obviously, the credit goes
to the said OTS. The real performance of the debt recovery tribunals (DRTs) is
yet to be seen. Progress would have been better had the government followed the
recommendations of the Tiwari Committee which mooted the concept of DRTs in
1984.
The original recommendations
were that the DRTs should be manned by persons having specialized knowledge in
the functioning of banks, institutions and industry; that no court fee ought to
be required; that intermediation of lawyers, except in suitable cases, be
avoided. All these matters are still under consideration of the apex court. Till
such time the final verdict is given, the borrowers and guarantors have no legal
defence except set-offs, counter-claims or counter-suits based on the Law of
Torts. This has become all the more relevant due to the forthcoming Company Law
Tribunal and the abolition of the Board for Industrial and Financial
Reconstruction along with its appellate body.
Ram Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(04) The following our Mini Article was published in The
Financial Express dated 28.08.01 page-6 in the column 'Letters to the Editor'
Defiant
banks, arrogant babus
THIS refers to the article 'Beyond the fiasco in Unit Trust of India' (Aug 25).
It is relevant to quote Mr Kanwal Rekhi's statement that "compared with the US,
the Indian financial sector is in a mess because the US is ruled by
entrepreneurs and India is ruled by bureaucracy". In our country, all efforts
are made to safeguard banks (via the conditions of multiple securities and
numerous other guarantees) but nobody bothers about the safety of entrepreneurs.
Real security is the entrepreneur's freedom to generate productivity, not
documents. A narrow and lopsided approach has made the bureaucracy in banks and
financial institutions arrogant and many of them are even breaking laws. The
Reserve Bank, since 1976 has issued several guidelines which have even been made
statutory by the apex court of the country, but bankers do not always follow the
said guidelines.
When the banks do not listen to RBI, why should
UTI listen to Sebi? Only the application of the Law of Torts by borrowers,
guarantors and investors will usher in the required sense of responsibility and
accountability in the bureaucracy in the financial sector. This is the only
solution. Meetings by the babus in North Block will not be able to find
any effective solution. As a nation we are in deep slumber, waiting for the
worst to happen i.e. the day when the public will be scared of depositing any
money in these banks and institutions.
Ram Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(05) The following our Mini Article was published in The
Financial Express dated 06.09.01 page-6 in the column 'Letters to the Editor'
Reviving sick cos through
tribunals
APROPOS the commentary on 'Companies (amendment)
bill, 2001: speeding up rehabilitation of sick cos' (Sept 3), the proposed
tribunals are intended to replace the Bureau of Industrial and Financial
Reconstruction and its appellate body as well as high courts in respect of
judicial functions and processes relating to sick companies. This is complex and
will involve a heavy workload. The imposition of a time limit of 6 months will
certainly impact the quality of the judgments. The industrial community,
particularly their associations like CII, Ficci and local units, should be very
cautious so that the proposed tribunals are properly headed by competent
technical members and experts.
In this connection, it has been pointed out in
the past that the industrial community was not vigilant at the time of formation
of the debt recovery tribunals, which were also required to be manned by persons
having specialized knowledge in the functioning of banks, financial institutions
and industry. Instead, retired district judges head them. Will the judicial
community accept the heading of district courts by businessman?
Will the government instruct civil courts to
decide the suits instituted by businessmen within 6 months as in DRTs or the
proposed national tribunals?
The principles of justice, equity and good
conscience under the law of torts demand that the matters relating to sick
industrial companies should be heard and decided by reasonable and prudent
persons having knowledge of the field. Then only would the formation of such
high powered tribunals be termed as a step in the right direction. Industry
bodies should vehemently oppose the rehabilitation of sick companies by
unqualified people. If timely action is not taken immediately, the proposed
tribunals will have the same detrimental effects as the BIFR.
Ram
Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(06) The following our Mini Article was published in The
Financial Express dated 11.09.01 page-6 in the column 'Letters to the Editor'
Implementation holds
the key - II
APROPOS ‘Implementation holds the key, concedes
PM' (Sept 8), during the past 54 years the key word was 'freedom' and everybody,
right from a peon to the President of India, enjoyed it. But now we're in
troubled waters. Proper implementation can be carried out only by people who, by
their very nature or thanks to the system they work in, are responsible and
accountable. The latter two, however, are utterly lacking in the entire
implementation machinery of the nation. Only the application of the Law of Torts
can usher in the desired level of responsibility and accountability.
This law, in brief, states that nobody has the
right to injure others and if he does so, intentionally or innocently, he will
have to compensate the injured person. In the developed world, this law occupies
the top most level but in our country it is hardly important. In the US, tort
costs are 2.2 percent of GDP. In India, the nexus between neta and
babu has never liked the Law of torts. But the public can use this tool to
free themselves from the tyranny of excessive bureaucracy.
Ram
Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(07) The following our Mini Article was published in The
Financial Express dated 14.09.01 page-6 in the column 'Letters to the Editor'
Old
wine
in
reSICAled
bottles
THIS refers to the article ‘Unknown vintage in
reSICAled bottle’ (Sept 11) which voices the impressions of the legal community.
The malaise is due to the sub-standard processes of drafting and introduction of
legislation. The babus in the law ministry have never paid any attention
to such processes existing either in British India or in UK or USA. Nowhere are
such frequent legislations or amendments thereof carried out. In this regard, it
was heartening to note that the AP Govt under Mr Chandrababu Naidu engaged a
private law firm to draft an AP Act.
The abolition of the Board for Industrial and
Financial Reconstruction along with its appellate body and assigning their work
to the new Tribunal (which will also handle the winding up of companies),
hitherto being handled by the high courts, is too complex a process to be
carried out successfully particularly when there only procedural and cosmetic
changes have been made in the existing provisions.
The scenario is prima facie defective
until there is ‘no fault insurance’ for business risks and honest implementation
of the ‘law of torts’ for responsibility and accountability. Till such time, the
various time limits would continue to look nice on paper but actual results
would be worse than in the BIFR era.
Ram Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(08) The following our Mini Article was published in The
Financial Express dated 01.10.01 page-6 in the column 'Letters to the Editor'
Private
vs public banks
THIS refers to the news item 'Private banks outdo PSBs in productivity in 2000-01' (Sept 28). The statistics presented therein
should open the eyes of the bureaucrats in the ministry of finance and the
Reserve Bank of India. The management, employees and unions of public sector
banks, as well as the Indian Banks Association, should see the writing on the
wall. The average profit per employee in private banks has gone up by 10.9 per
cent whereas the same has gone down by 11.76 per cent in PSBs despite VRS.
Each employee in a particular private bank
transacted business of Rs 1966.2 7 lakh in 2000-2001 against Rs 148.20 lakh in a
certain PSB. It is high time that the government expedited banking and financial
reforms for the efficient utilization of capital as well as to augment the
competitiveness of Indian industry. Our nation has already paid a very heavy
price since 1969 when banks were nationalized.
Ram
Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(09) The following our Mini Article was published in The
Financial Express dated 03.10.01 page-6 in the column 'Letters to the Editor'
Fighting corruption
THIS refers to 'Kerala pilot-study on corruption
puts borderline cases to shame' (Oct 1). Various developed societies have
devised ways and means to control corruption. In the US, the bribe-giver is
jailed for a longer term than the bribe-taker. In China, corruption cases are
decided in a week and the guilty person is shot dead. In Sweden, the tax returns
of a person can be scrutinized by anybody including the neighbours, enabling
constant supervision of sources of Income and assets. In Singapore, children are
so thoroughly educated about this menace that they do not hesitate to complain
against their corrupt parents. The European countries and the US have accorded
top importance to the law of torts which makes public servants, fearful of legal
action, more responsible.
In India, the neta-babu nexus does not
want corruption to be eliminated. Political parties do not like electoral
reforms by which contributions will be received only through cheques. The
general public prefers corrupt processes so that their job is done quickly by
greasing palms. A serious drawback of the present state of affairs is that
corruption will engulf the entire society soon. We are doing nothing but
creating a hell for our children if we do not develop an anti-corruption mindset
and adopt harsh measures as .other countries have done.
.
Ram Kishan
on e-mail
[Back to Top]
[Back to above List of Mini Articles]
(10) The following our Mini Article was published in The
Financial Express dated 11.10.01 page-6 in the column 'Letters to the Editor'
Court versus Tribunal
THIS refers to the article 'Court vs Tribunal -
the dilemma' (Oct 9). In our country, the government, through its agencies and
instrumentalities, is the major litigant. Public servants are not afraid of
committing actionable wrong-doings because they know that the established
judicial process is very time-consuming as well as expensive. Wherever the
bureaucracy in a particular agency is pitched against the public, the agency
impresses upon the government the need to create a tribunal. With passage of
time, the tussle between the principles of natural justice and procedural law
like the Civil Procedure Code has become an added factor leading to the lax
functioning of tribunals. Ultimately, the entire scenario boils down to the
conduct of the citizens which include the public, bureaucrats and the officers
of the court.
The importance of the law of torts must be
recognized and the law must be implemented. Only then will a minimum standard of
conduct be achieved. Consequently, there will be fewer wrong- doings by public
servants and civil courts will function more efficiently. In that eventuality,
there will be no such dilemma and summary jurisdiction like tribunals will not
be needed to the extent they are needed at present
Ram
Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(11) The following our Mini Article was published in The
Financial Express dated 15.10.01 page-6 in the column 'Letters to the Editor'
Access sought for DRT route
THIS refers to the news item 'NBFCs seek access
to DRT route to recover NPAs' (Oct 12). The tribunals are required to be guided
by the principles of natural justice with due regard to equity, justice and good
conscience. Keeping these aspects in view, the apex court has rightly emphasized
the inclusion of counterclaims and setoffs, which were incorporated by the
government since January 2000.
All these provisions do not preclude the
application and operation of the law of torts. The defendant/borrowers are free
to exercise their right of defence by pleading the relevant facts, circumstances
.and consequences leading to their adverse situation of non-payment or delayed
payment of dues along with injury, damages or impact of wrong doings, if any. The
defence includes wrong appraisals, breach of statutory duties like violations of
RBI guidelines, breach of duty of care, negligence, infringements of rights,
misfeasance, non-feasance and other torts.
The seemingly expeditious process should be
utilized by the consumers of public finance to put across their point of view
particularly in the absence of no-fault insurance and the existence of an
irresponsible and unaccountable bureaucracy. Perhaps the changed judicial
scenario will highlight the real reasons for the generation of non-performing
assets. The conduct and Culture of lenders and borrowers both are expected to
undergo a salutary transformation with a clear impact on the judicial process.
The non-bank financial institution should not be under the impression that its
debt recovery would be a cake walk. Or that the appointment of nodal officers
can mask the wrong doings, if any, of the bank bureaucracy.
Ram
Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(12) The following our Mini Article was published in The
Financial Express dated 18.10.01 page-6 in the column 'Letters to the Editor'
Compromise route is sensible
THIS refers to the news items 'RBI panel on
defaulters to submit report soon' (Oct 13) and 'NBFCs seek access to DRT route
to recover NPAs' (Oct 12). It is informed that under the One Time Settlement
scheme, over 6.5 lakh accounts involving nearly Rs 3,500 crore have been settled
through the compromise route.
Further it is stated that Rs 2,585 crore was
being recovered through debt recovery tribunals. Thus, major recoveries have
been through the OTS and the impact of the DRTs has only been to create
pressure. The real performance of the DRTs cannot be otherwise.
After all, the judicial process, howsoever
expeditious, has its limitations. More so, when the defendant/borrowers are
increasingly aware about the scope of their rights to defence with the
application of the law of torts in the areas of counterclaim and setoffs.
Sensing the same, the banking bureaucracy has
rightly concluded that banks would continue to explore the compromise route for
settlement of dues under their normal policy. The best recovery is out of the
profit's generated from running businesses.
Market forces i.e. continuously falling credit
deposit ratio will force banks to help their wealth- producing-borrowers in all
possible ways. That would be better than either OTS or DRT. The added benefit
would be gainful utilisation of existing resources, prevention of unemployment
and wealth
generation.
Ram
Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(13) The following our Mini Article was published in The Financial Express
dated 20.10.01 page-6 in the column 'Letters to the Editor'
FIs at crossroads
THIS refers to ‘Reincarnation of financial
institutions’ (Oct 17). Controls through market forces, growing exposure to
technologically- savvy competition, and high costs of poor infrastructure have
reduced the value of FIs’ assets. The solutions offered by those who matter are
generally cosmetic and superficial.
Building up qualitatively sound society takes time
but there is no other solution. We have chosen to be a modern democratic
society, which functions properly only if reigns supreme and citizens behave
appropriately. Until we recognize these aspects, we will fail to progress. As
matters stand, there is no conscious effort in this direction and therefore, FIs
and banks will continue pressurizing the government to bear their losses. A tile
will come when the government will be unable to rescue them and only alternative
left will be privatization.
Ram Kishan
on
e-mail
[Back to Top]
[Back to above List of Mini Articles]
(14) The following our Mini Article was published in The
Financial Express dated 24.10.01 page-6 in the column 'Letters to the Editor'
Strength of mind
This refers to article ‘The learning
organization: Getting business value from knowledge' (Oct 18). Modern society is
fast transforming itself into a knowledge society, thanks to the spread of the
internet. Henceforth, knowledge management will be the most sought-after tool.
In this context, the mental capacity of humans interacting with knowledge
machines i.e. computers will be the key limiting factor. The threshold of the
said factor can be enhanced by transcendental meditation, leading to the
ultimate development of consciousness.
Ram Kishan
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(15) The following our Mini Article was published in The
Financial Express dated 27.10.01 page-6 in the column 'Letters to the Editor'
Warning signs of SSI sickness
THIS refers to 'Banks, FIs to spot signals on SSI
sickness' (Oct 24). Way back on December 14, 1978, RBI had proclaimed in its
statutory guidelines that "the problems faced by sick small-scale units and
small entrepreneurs need to be tackled with greater awareness and understanding.
Banks should establish a separate cell at the top level for looking into such
complaints and for taking effective follow-up action." Since there was no
perceptible impact on bank bureaucracy, RBI in another mandatory guideline dated
December 4, 1979 cautioned the chief executives of the banks that "banks were
advised by us in 1976 to set up appropriate machinery... to provide monitoring
and counseling assistance to sick units and to make use of the information
system to detect incipient sickness so that preventive measures could be taken
in time. We, therefore, once again impress upon the chief executives... to give
this matter their personal attention and see that the banks tone up immediately
their machinery for monitoring sick units with a view to restoring them to
health. “Again nothing worthwhile happened and such sermons were repeatedly
issued on 6th Nov 1980, 15th July 1981, 23rd Sept l981, 28th
April 1982, and 12th April 1983.
The banks weren't exactly listening so, on 7th
Oct 1985, the RBI in its statutory guideline stated that "the bank (i.e. RBI)
will view seriously lapses on the part of banks which do not adhere to these
instructions scrupulously". Several circulars followed this one, and the one
under reference is on the same lines as the 1976 circular. The bureaucracy in
public sector banks simply does not bother about RBI's instructions. No action
is taken if its circulars/guidelines are flouted. The entrepreneurs we left with
no alternative but to file damage suits under the law of torts claiming
compensatory, aggravated and exemplary damages for such willful breach of
statutory duties and infringement of rights of the entrepreneurs. The function
which should have been performed by the RBI and central government has to be
performed by the judiciary, as in several other spheres of our society.
Ram Kishan
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(16) The following our Mini Article was published in The
Financial Express dated 31.10.01 page-6 in the column 'Letters to the Editor'
Backlog in Lower Courts
THIS refers to the article 'Delays in lower
courts mess up judicial system' (Oct 23). The Supreme Court has improved its
efficiency by resorting to technology. As for the lower courts most delays there
are on account of wrongful conduct of the advocates, who resort to various legal
provisions in an attempt to prolong cases. Since the judges are overburdened,
they are unable to do much about these delaying tactics.
The litigants are highly ignorant of legalities
and hence the lower courts continue to have huge backlogs. In such a system,
only the financially strong parties are able to use the judicial machinery to
get relatively fast legal redress. With the passage of time, factor like more
educated litigants, greater number of trained judges, application of
information technology, reform in general
conduct due to the application of law of torts for everybody etc. will improve
disposal in lower courts. Judicial pronouncements cannot and should not be
subject to evaluation and correction through parameters like quantum of
disposal, targets, fast-track and summary trials. Otherwise the quality of
decisions will add to the burden of superior courts by way o revisions, appeals
etc.
Ram Kishan
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(17) The following our Mini Article was published in The
Financial Express dated 03.11.01 page-6 in the column 'Letters to the Editor'
Drive out
Satans
THIS refers to ‘Time to drive out Satans from the
temples of modern India’ (Oct 31). While the conclusion – that the Satans be
replaced with private entrepreneurs, and the market forces be allowed to keep
the latter disciplined – is correct, this remedy is incomplete. The bureaucracy
which is a beneficiary, and therefore facilitates wrongdoings, will not change
its ways. A weak system allowed the babus to milk public sector
undertakings for their self-interest. In fact, the front line leaders of our
democratic setup did not pay enough attention to creating a system in which the
politician and the bureaucrat could not indulge in corrupt practices, for fear
of punishment.
If we continue to ignore this aspect, the
wrongdoers will continue their looting and keep enjoying their free lunches.
Modern democracy can survive and develop only when the rule of the law is
supreme amd all citizens, including politicians and bureaucrats, abide by
certain standards of conduct. Such conduct can be achieved by taking recourse to
the law of torts. Damage cases under this law can be filed against the culpable
bureaucrats and politicians. This is the same law under which Captain Satish
Sharma and Mrs Sheila Dixit were personally fined Rs 50 lakh and Rs 60 lakh
respectively by the Supreme Court. It is only when the neta and the babu are
disciplined that the entrepreneur will be able to face market forces fairly.
Ram Kishan
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(18) The following our Mini Article was published in The
Financial Express dated 12.11.01 page-6 in the column 'Letters to the Editor'
Wilful defaulters
THIS refers to the news item 'Willful bank
defaults rise four-fold; amount soars to Rs 4,600 cr' (Nov 9). The Reserve Bank
list is prepared on the basis of the sole version of financial institutions and
banks. The RBI does not make any inquiry, neither does it countercheck their
version with the version of the borrowers.
It is a well-known fact that the public sector
lending institutions and banks are duty bound to obey statutory RBI guidelines
issued since 1976. In many cases, there are open and willful violations of these
guidelines by the banks and FIs. Further, while there is no 'no fault' insurance
of borrowers, the institutions and banks have multiple safeguards and securities
(such as support from the government, mortgages, collaterals, personal
guarantees, institutional credit guarantees, margins etc). This is against all
principles of equity, justice and good conscience. Most security documents are
one sided and hence are liable to be held illegal ab initio even
if signed.
Under the law of torts, the institutions and
banks are bound to discharge their duty of care if there is any prejudice to the
rights of the borrowers under the particular facts, circumstances and
consequences. The legally sound borrowers have full rights to resort to these
defences combined with counterclaims
That is why the institutions, banks, RBI as well
as debt recovery tribunals are inherently more inclined towards settlements
rather than legal battles. Ultimately the bureaucracy in the FIs and banks will
have to act responsibly and display accountability combined with financial
acumen. It must be recognized that production, productivity and utilization of
resources are better modes of recovery than the coercive legal route which may\
boomerang on them.'
Ram Kishan
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(19) The following our Mini Article was published in The
Financial Express dated 13.11.01 page-6 in the column 'Letters to the Editor'
Sick companies
THIS refers to 'The system encourages businesses
to turn sick' (Nov 8). The system comprises of, and is operated by the concerned
people. The permit-license raj and the neta-babu nexus only
enhanced corruption by creating more hurdles. We now desire to transform the
system from being 'bureaucracy-centric' to 'business-centric'. If we want
businesses to face market forces, the bureaucracy will have to be honest, law
abiding and responsible. The moment the bureaucracy is transformed, the said
nexus will break down. The second pre-requisite is an introduction of no-fault
insurance as in developed countries. Finally, we need efficient and independent
judicial machinery, whereby the corrupt and irresponsible businessmen can be
weeded out.
Ram Kishan
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(20) The following our Mini Article was published in The
Financial Express dated 20.11.01 page-6 in the column 'Letters to the Editor'
Stand-still
recoveries
THIS refers to 'Settlement scheme for loan
defaulters to cards' (Nov 13). The first phase of the One Time Settlement scheme
for bigger borrowers is nearly over and hence the government has turned its
attention to smaller borrowers. But the recoveries will be peanuts compared with
those arising from bigger borrowers. Bank recoveries have virtually reached a
stand-still now. This is the right time to pay attention to the law of insurance
and law of damages. All businesses face risks. Insurance companies should
introduce plans for business failures and 'no fault' insurance. Project
appraisers should insist on such provisions. The Reserve Bank should caution
banks and financial institutions about the imposition of damages for breach of
statutory RBI guidelines. If such essential conditions are not created,
entrepreneurs will not be attracted to new business propositions.
Ram Kishan
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(21) The following our Mini Article was published in The
Financial E
