DRT Legal Solutions
(Debts Recovery Tribunal Legal Solutions) is an India based
Law Firm specializing in DRT, Securitisation, Sarfaesi, IBC, 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 - +91-9691103689, 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
(5) Forthcoming Elections
(a) Swami Ramdevji has declared that next 9 months are very crucial for Indian democracy. During this period, he will not stay in Patanjali, Haridwar and instead will be touring every part of the country to route out Congress Party and support Narendra Modi so that he becomes the next Prime Minister of the country.
(b) Everybody should vote. People around us need to be emphasized so that they must vote.
(c) This are going to be the most important elections in the history of our nation.
(d) Whenever possible please view Aastha TV channel daily from 8 PM to 9 PM, morning 5:30 AM to 7:30 AM; Sanskar TV Channel from 9 PM to 10 PM.
(f) On YouTube, there are several videos of Swami Ramdevji, the latest being titled ’21 Questions from Corrupt Politicians’ vide link
DRT Solutions Weekly Mail – 278th Issue dated 6thSeptember ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) New RBI Governor desires Efficient Loan Recovery through Accelerated Working of DRTs
The following news item is self explanatory:-
Clean-up act: Robust loan recovery takes centre stage
FE BUREAU : MUMBAI, SEP 05 2013, 09:14 IST
On the first day of his appointment as Reserve Bank of India governor, Raghuram Rajan emphasized on the need for an efficient system to recover loans at a time when the bad loan problem in the banking sector continues to aggravate.
“While the resumption of stalled projects and stronger growth will alleviate some of the banking system difficulties, we will encourage banks to clean up their balance sheets, and commit to a capital raising programme, where necessary. The bad loan problem is not alarming yet, but it will only fester and grow if left unaddressed,” Rajan said.
He also said the working of Debt Recovery Tribunals and Asset Reconstruction Companies had to be accelerated and to assure this Rajan, along with deputy governor Anand Sinha, will examine the necessary steps to be taken.
Deputy governor KC Chakrabarty will take a close look at the rising NPAs and the restructuring and recovery process, and necessary steps in the direction will be announced in the coming days, said Rajan. The RBI plans to collect credit data and examine large common exposures across banks to enable the creation of a central repository on large credits, which can be shared with the banks.
“This will enable banks themselves to be aware of building leverage and common exposures,” Rajan said. It will follow the suggestions from Financial Sector Legislative Reforms Commission to set up an enhanced resolution structure for financial firms. The working group on resolution regimes for financial institutions is looking at this and “we will examine its recommendations and take action soon after”, he said.
The gross NPAs in the banking system is currently estimated at 4.2-4.4% at the end of June 30, while restructuring approved through corporate debt restructuring cell in FY13 was over Rs 76,000 crore. In the April-June quarter restructuring cases approved through the cell were worth Rs 21,266 crore.
(a) First the bank officials need to properly trained in appraisal of the projects. They need to have proper outlook towards working and problems of business and finance. The emphasis should be on flow of adequate finance without any delay.
(b) The banks need to have their internal legal audit so that if there are any wrong doings by the banks, instead of referring to the courts and DRTs, the wrong doings should be corrected.
(c) The banks should have a system to provide compensation for the wrong doings.
(d) Ultimately, it should be realized by one and all that the best recovery is by running of the business rather than recovery through legal means.
(e) Till the above is achieved the borrowers should devote time for legal studies so that they can interact gainfully with their advocates. In all cases, the counter-claims and damages must be filed right from the beginning. The cases should be contested seriously on all dates. Mastery of facts and mastery of law should be key words at every moment of time.
(f) A through and repeated study of our web site and weekly mails will achieve the above objectives.
(2) Declining Standards in Lower Judiciary & Costly Higher Courts – Total Denial for Justice
The following article is a stark reality of insensitive Supreme Court and the Govt. On account of these reasons, we have been all along advising the borrowers to pay all time and energy in lower courts to help their advocates otherwise no justice can be achieved.
Nine out of 10 cases of failure of justice do not come to the SC’s notice because people can’t afford the cost.
If the Supreme Court is inaccessible to a large segment of society because of cost barriers, then doesn’t it amount to total denial of justice? The apex court is the last resort for justice, and in my estimate 9 out of 10 cases of failure of justice are not brought to its notice because people simply cannot afford the cost. The misery is compounded by the declining standards prevailing in the lower judiciary. The framers of the Constitution fell into grievous error when in 1950 they did not provide for setting up of benches of the Supreme Court at other major centres—because they ought to have appreciated the fact that India’s population at the time was about 40 crore and its territories extended from Kanyakumari to Ladakh and from Kutch to Calcutta, and that the overwhelming majority of the population were poor or middle-class.
Article 136 of the Constitution creates a right to appeal by Special Leave to the Supreme Court from any judgement, decree, determination, sentence or order in any cause or matter or made by any court or tribunal in the territory of India. How then can the Supreme Court sit only in Delhi? Even so, the Constitution makers did envisage that at some time in the future benches of the Supreme Court at other places would be necessary and, therefore, empowered the Chief Justice of India to set them up from time to time, with the approval of the president. But here too, conferring this power on one authority was again a grave error. The power should have been vested in a body of persons representing all stakeholders.
Unfortunately, the power has not been exercised even after a lapse of 63 years despite the Law Commission of India headed by former CJI A.R. Lakshmanan recommending setting up of benches at four other places in India in its 229th report. The proposal was rejected by the Chief Justice of India on the wholly untenable ground that it would affect the court’s unitary character.
Such an argument was not contemplated by Article 130, which places no impediments on the CJI if he wishes to create SC benches elsewhere. So the decision in the circumstances we see now, in my view, amounts to abdication of power and failure to perform a duty. I agitated this matter by addressing letters dated 27/4/2012 and 11/7/2012 to the then CJI S.H. Kapadia pointing out the gravity of the situation and urging him to set the ball rolling. I did not even receive an acknowledgment. I then addressed a letter to just retired CJI Justice Altamas Kabir, complaining that the SC had shown complete lack of transparency and accountability by ignoring my letters. I received a cryptic reply dated 23/1/2013 from the assistant registrar that the proposal of the Law Commission, which was forwarded by the central government for implementation, had been rejected and therefore no action could be taken on my representations. The learned chief justice surprisingly did not state as to why the issue could not be revisited in the light of recent research done by renowned academicians, which showed that cost was a barrier to approaching the Supreme Court.
The author is a former Additional Solicitor General of India; E-mail your columnist: letters AT outlookindia.com
(3) Stop Consuming Very Dangerous Items in Our Daily Life
Dr V.P. Bansal, M.B.B.S (Gold Medalist), M.D.(Allopathy),D.H.M.S.(Homoeopathy), Mobile: 91-9926020111, Landline: 91-731-2467818,2467819, 09406856868, www.drbansals.com from Indore has sent the following useful mail :-
Stop Consuming Very Dangerous Items in our daily life
Change in Our Mobile No:-
DRT Solutions Weekly Mail – 277th Issue dated 30th August ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Useful and Favourable Court Judgments for Borrowers and Guarantors
Despite our repeated information that we have published full text of several court judgments which are highly useful and favourable to the borrowers and guarantors, still we are getting many queries even from Senior Advocates, borrowers and guarantors asking for citations and text of the said judgments. In this connection the following is proposed:-
(a) Complete list of the said judgments is available at three web pages on our web site as under:-
(i) Home Page i.e. www.drtsolutions.com
(ii) DRT Judgments Favorable for Borrowers & Guarantors i.e. http://www.drtsolutions.com/DRT-Judgments.htm
(iii) DRT Judgments Favorable/Useful to Borrowers i.e. http://www.drtsolutions.com/DRT_Judgments.htm
(b) The above mentioned list is reproduced below:-
◙ DRTS-021 Calcutta High Court judgment on 'Publication of Photos in newspapers' in the matter of 'Ujjal Kumar vs SBI' decided on 03.05.13. The said High Court ruled that the Publication of Photos in newspapers of the borrowers to recover debts can not be resorted to as it is not covered in Securitization Act. Full text of the judgment with our comments and important portion marked in Red is available vide linkhttp://www.drtsolutions.com/Ujjal-Kumar-vs-SBI-2013.htm
◙ DRTS-020 Gujrat High Court judgment on 'Securitization Act not applicable to Co-operative Banks' in the matter of 'Rajendra N Shah vs Unknown' decided on 22.04.13. The said High Court ruled that the Amendment issued by the Govt in January 2013 is ultravires in respect of co-operative banks. Full text of the judgment with our comments and important portion marked in Red is available vide linkhttp://www.drtsolutions.com/Rajendra-Shah-vs-Unknown-2013.htm
◙ DRTS-019 Supreme Court judgment and order on 'Review due to Misconception of Court' in the matter of 'Moran Mar Basselios Catholicos vs Moat Rev. Mar Poulose Athanaslus' decided on 02.05.52. The Supreme Court allowed the appeal, set aside the judgment of the High Court and admit the Review. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Moran-Review-Misconception.htm
◙ DRTS-018 DRT-II Kolkota judgment and order on 'SA No 101 of 2011' in the matter of 'Azmeer Business Pvt Ltd. vs Union Bank of India' decided on 04.06.13. The case has been decided in favour of the borrower. The PO DRT has set aside the Bank's notice u/s 13(2), set aside the auction and ordered restoration of the property to the borrower. Full text of the judgment with our comments is available vide linkhttp://www.drtsolutions.com/Azmeer-UBI-SA-allowed.htm .
◙ DRTS-017 Supreme Court of India Judgment on 'Guarantor's Property - Constitutional and Human Rights' in the matter of 'KSFC vs N. Narasimahaih & Others' decided on 13.03.08. This is highly relevant to get 'Complete justice for Guarantor's Property'. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/KSFC-Narasimahaih.htm Important portions of the judgment have been marked in Red.
◙ DRTS-016 Supreme Court of India Judgment on 'Frivolous and Unjust Litigation by Bureaucracy' in the matter of 'Urban Improvement Trust vs Mohanlal' decided on 30.10.09. This is highly relevant to 'Frivolous, Unjust and Multiple Litigations' filed by banks '. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Urban-Improvement-Trust-Mohanlal.htm Important portions of the judgment have been marked in Red.
◙ DRTS-015 Supreme Court of India Judgment on 'Review and Appeal - Simultaneous Adjudication' in the matter of 'Thungabhadra Industries vs Govt of AP' decided on 20.10.63. This is highly relevant to 'Filing of Review and or Appeal and their adjudication'. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Thungabhadra-GovtAP-Review-Appeal.htm Important portions of the judgment have been marked in Red.
◙ DRTS-014 Supreme Court of India Judgment on 'Natural Justice - Opportunity of Hearing - Fundamental Rights' in the matter of 'Maneka Gandhi vs UOI' decided on 25.01.78. This is highly relevant to 'Magistrate in Sec 14 of Securitization Act to provide opportunity of hearing to Borrowers'. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Maneka-Gandhi-UOI-Natural-Justice.htm Important portions of the judgment have been marked in Red.
◙ DRTS-013 Supreme Court of India Judgment on 'Court, Tribunal, DRT, Transfer from Court to DRT, Counter-claim and Appeal' in the matter of 'Nahar Industrial Enterprises vs Hongkong & Shanghai Banking Corp' decided on 29.07.09. Full text of the judgment with our comments is available vide link www.drtsolutions.com/Nahar-HSBC-Counter-claim-Appeal.htm Important portions of the judgment have been marked in Red.
◙ DRTS-012 Supreme Court of India Judgment on 'DRTs even can go beyond CPC' in the matter of 'ICICI Ltd vs Grapco Industries Ltd' decided on 14.05.99. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/ICICI-Grapco.htm Important portions of the judgment have been marked in Red.
◙ DRTS-011 Supreme Court of India Judgment on 'Counter-claim can be filed even after filing of WS' in the matter of 'Mahendra Kumar vs State of MP' decided on 04.05.87. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Mahendra-MP.htm Important portions of the judgment have been marked in Red.
◙ DRTS-010 Supreme Court of India Judgment on 'Discovery, Production and Inspection of Documents' in the matter of 'H.L. Sethi vs R.P. Kapur' decided on 19.07.72. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Sethi-Kapur.htm Important portions of the judgment have been marked in Red.
◙ DRTS-09 Kerala High Court Judgment on 'Bank's Application to Magistrate u/s 14 is appealable to DRT u/s 17' in the matter of 'Sami vs Bank of India' decided on 22.07.11. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Magistrate-Appeal.htm Important portions of the judgment have been marked in Red.
◙ DRTS-08 Supreme Court Judgment on 'Points Pressed during Arguments have to be mentioned in the Judgment/Order' in the matter of 'Mohd. Akram Ansari vs Chief Election Officer and Others' decided on 04.12.07. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/Points-Pressed.htm Important portions of the judgment have been marked in Red.
◙ DRTS-07 Allahabad High Court Judgment on 'SA u/s 17 and 18 to be decided before any Recovery Action' in the matter of 'Gulshan Rai, Jain and Others vs Debts Recovery Appellate Tribunal and Others' decided on 28.09.11. Full text of the judgment with our comments is available vide http://www.drtsolutions.com/SA-Before-Recovery.htm Important portions of the judgment have been marked in Red.
◙ DRTS-06 DRAT, Delhi Judgment on 'Counterclaim permissible in SA u/s 17 of Securitisation Act' in the matter of 'Vijaya Bank vs B. L. Gupta' decided on 16.03.11. Full text of the judgment with our comments is available vide http://www.drtsolutions.com/counterclaim-SA.htm Important portions of the judgment have been marked in Red.
◙ DRTS-05 Supreme Court Judgment on 'Property Valuation, Sale, Auction and Disposal' in the matter of 'Ram Kishun & Others vs State of UP & Others decided on 24.05.12. Full text of the judgment with our comments is available vide http://www.drtsolutions.com/SC-Property-Disposal.htm Important portions of the judgment have been marked in Red.
◙ DRTS-04 Karnataka High Court Judgment on 'Notice u/s 13(4) is a must before initiating action u/s 14 for approaching to the Magistrate' in the matter of K.R. Krishnegowda vs Authorised Officer decided on 27.03.12. Full text of the judgment with our comments is available vide link http://www.drtsolutions.com/13(4)-14-Magistrate.htm Important portions of the judgment have been marked in Red.
◙ DRTS-03 Patna High Court Judgment on 'Dismissal of the OA' in the matter of Purnea Cold Storage vs State Bank of India decided on 27.08.12. As soon as SA is filed, the existing OA or if OA is filed, the same deserves to be dismissed. Full text of the judgment with our comments is available vide link www.drtsolutions.com/OA_Dismissal.htm Important portions of the judgment have been marked in Red.
◙ DRTS-02 Supreme Court of India on simultaneous proceedings of OA and SA in the matter of Transcore vs Union of India decided on 29.11.06 :- Full text of this judgment is available on this site vide linkhttp://www.drtsolutions.com/sc_judgment_on_drt,_securitisation,_transcore.htm
This judgment is referred to in the above Patna High Court Judgment. Past several years, we have observed that majority of the advocates and the judges are making mistake in interpreting this Transcore Judgment. Patna High Court has supported our line of thinking.
◙ DRTS-01 Bombay High Court Judgment on Condonation of Delay in the matter of Manilal Govindji Khona vs Indian Bank decided on 29.08.12 :- Full text of this judgment with our comments is available on this site vide link www.drtsolutions.com/condonation_delay.htm Important portions of the judgment have been marked in Red. We have been opining past several years that the matter of condonation of delay has to be permitted in the DRTs despite several judgments of the High Courts. Now our contentions have been supported by this Bombay High court judgment.
All the above 21 judgments are favourable and useful for the borrowers and guarantors. Whenever any need is felt for such judgments, the above list may be reviewed. Our comments, extracts given in Red and full text will help.
(2) Enrichment of Our Web Site and Weekly Mails
We get many mails and phone calls for queries about the defence of borrowers and guarantors accordingly we go on modifying and enriching our web site as well as the weekly mails. With passage of time, the web site goes on becoming useful to the visitors. The following recent mail is an example as to how our web site is being used by the borrowers. The name and related details have been suppressed for the sake of professional secrecy:-
exhausted my resources, I wonder whether I will be in a position to take
your professional help as in my thinking your profile leads me to
believe that you may be charging high fees which I may not be in a
position to afford. At the age of 75 years and having retired from a
senior position from a financial institution I have suffered because I
took the risk of entering into Industry, not knowing the method of
dealing with the banks, believing too much which has almost broken me
. I could never imagine that senior officer in banks will back out after
getting more than 50% of the debt due and will not bother to abide by
the notification of the RBI for structuring of the balance loan /or OTS
so that the production in the
We sent the following reply:-
---------- Forwarded message ----------
(1) You should contest your case in the capacity of the individual representing the MD/Partner etc whereas your Company/Firm may be represented by your advocate.
(2) Most of the entrepreneurs in our country do not conserve their reserves and not only invest everything but borrow privately. Ultimately when the banks file cases for recovery, the entrepreneurs do not have resources to fight leave alone survival.
(3) The above is due to all out efforts for promotion of industries. In fact we should have first promotion for entrepreneurship and building up of infrastructure for industries before promotion of industries. On account of such faulty approach, we are endangering the entrepreneurship in the country.
(4) Anyway, keep on fighting. Any human being is a living god with inherent strength unknown to him.
With best wishes,
(3) Respect A Woman
Mr Firoz Poonawalla has sent the following useful mail which is self explanatory:-
Respect A Woman
Change in Our Mobile No:-
DRT Solutions Weekly Mail – 276th Issue dated 23rd August ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Publication of Photos in Newspapers held Illegal by Calcutta High Court
Full text of this judgment with comments and important portion marked in Red may be seen vide linkhttp://www.drtsolutions.com/Ujjal-Kumar-vs-SBI-2013.htm
Ujjal Kumar Das vs SBI decided on 03.05.13 by Calcutta High Court Writ Petition No – 10315 of 2013
Bench: Mr Justice Dipankar Datta
DRT Solutions Citation – DRTS-021-Ujjal Kumar vs SBI-2013
We have now numbered the Judgments published on this web site as DRTS-00. Accordingly all the judgments published so far have been numbered. The judgment on this page is numbered as DRTS-021.
Comments by DRT Solutions
The above mentioned Calcutta High Court Judgment of 2013 lays down that Publication of Photographs of the Defaulting Borrowers in news papers is not permissible in terms of the Securitization Act or any other law
Utility of this Judgment – Whenever the banks threaten to publish the photographs of the borrowers, the law pronounced in this judgment be pointed out to the Banks and in case of disagreement, the matter be put up before the DRT. If there is any adverse decision, matter be taken up in higher courts based on this judgment.
The full text of the judgment is given on our web site vide link http://www.drtsolutions.com/Ujjal-Kumar-vs-SBI-2013.htm which is self explanatory. Important portions have been marked in Red. Our comments are as under:-
(a) Past several years, many of our clients have been facing the threat of the banks to pubish their photographs in the news papers. We have been advising them to file injunction suits in the court of law. In some instances, injunctions have been granted. In some cases when the courts have not granted such injunctions, the Reviews and Appeals have been filed.
(b) Even two High Courts have delivered judgments against our contentions viz MP High Court in the matter of Archana Chauhan and Madras High Court in the matter of K.J. Doraisamy.
(c) But now this judgment has supported our contentions.
(d) Extract from the marked Red portions of the said judgment is reproduced below:-
(18) With the deepest of respect I have for the learned Judges who decided the writ petitions in Archana Chauhan (supra) and K. J. Doraisamy (supra), I have failed to persuade myself to agree with Their Lordships.
(20) In my humble view, the opinions recorded in the paragraph extracted supra are neither backed by any reason nor can be supported with reference to any provision of the SARFAESI Act or the rules framed thereunder.
(25) - - -There is little doubt that the SARFAESI Act confers wide powers on the secured creditors to enforce the security interest without judicial intervention up to the stage of taking measures under Section 13(4) thereof. Classification of a loan account as non-performing asset, computation of the quantum of dues and taking over possession of the secured asset upon rejection of the response to the notice under Section 13(2) are the various steps that are required to be taken for enforcing the security interest. In course thereof, the secured creditors may not ordinarily face interference by the courts, since the vires of the SARFAESI Act has been upheld. It is only at the stage of Section 17(1) thereof that there is scope for a judicial determination of the issues raised by a borrower/guarantor by the Debts Recovery Tribunal having jurisdiction. Till such time the Tribunal is approached and requested to consider a prayer for interim relief, it is a totally one-sided affair. The secured creditor unilaterally decides whether one is a defaulter or not and further as to whether the photograph of such defaulter ought to be published or not. By no stretch of reasoning can I conceive of the SARFAESI Act conferring on the secured creditor the unfettered power to act in such manner. If it were accepted that the secured creditor enjoys the unfettered power of publishing the photograph of a defaulting borrower/guarantor and does so even before the Tribunal under Section 17 of the SARFAESI Act could be approached, and quite some time thereafter the Tribunal under sub-section (3) of Section 17 holds that the secured creditor had acted contrary to the other provisions thereof while enforcing the security interest under sub-section (4) of Section 13 and ultimately directs restoration of possession, the damage that could be caused to the reputation and dignity of an honest borrower/guarantor by reason of publication of his photograph in the interregnum would be irretrievable. It may not be possible to compensate such damage by money, if a borrower/guarantor, who has been proceeded against contrary to law by the secured creditor and whose photograph is published, is unable to bear the ignominy and takes a drastic step. Since publication of photograph of a defaulting borrower/guarantor has the potential of exposing him to irreparable loss, injury and prejudice, publication of photograph cannot be resorted to in the absence of an express power or an agreed term in this behalf.
(2) Loan Defaults spark Rangarajan-Ranjit Sinha Debate; CBI Boss smells Fraud in Rising NPAs
The following news item published in net edition of ET dtd 22.08.13 is useful. As per Mr Rangarajan the rising NPAs could also be on account of grim state of the economy rather than frauds. This can be pleaded or included in the arguments before the court. Under such facts and circumstances, the mindless pressure for recovery is unwarranted and if required it should be with due application of mind:-
Loan defaults spark Rangarajan-Ranjit Sinha debate; CBI boss smells fraud in rising NPAs
By Aman Sharma, ET Bureau | 22 Aug, 2013, 05.01AM IST
NEW DELHI: A plain-vanilla conference of PSU vigilance chiefs saw the unusual spectacle of two senior government officials openly disagreeing on the reason for the rising quantum of loan defaults.
While CBI Director Ranjit Sinha on Wednesday pitched for fixing criminal accountability of public sector bank officials in case of loan defaults, he was contradicted by veteran economist C Rangarajan, who pointed out that the rise in non-performing assets of banks could also be on account of the grim state of the economy rather than frauds.
Rangarajan, a former RBI governor and chairman of the Prime Minister's Economic Advisory Council, was the chief guest at the 5th Annual Conference of Central Vigilance Officers of government PSUs and officers from CBI on Wednesday.
"While judging the increase in NPAs, CBI must also take note of what is happening in the economy," Rangarajan said.
Director invokes Mark Twain
...not all NPAs are attributable to suspect behaviour of those giving loans but many are also related to how the economy behaves," Rangarajan said.
The veteran policymaker was responding to remarks by Sinha, who in his opening remarks referred to the high amount of NPAs of public sector banks and said they were a cause for concern. NPAs, said the CBI director, had risen substantially in the last two years, from Rs 59,924 crore in 2010 to Rs 1,17,262 crore in 2012.
"The bulk of the NPAs is from the top 30 accounts, which is learnt to be running into thousands of crores. CBI has already initiated investigation or enquiries in some of the big defaulter accounts," Sinha revealed. He also said the amount involved in bank frauds had increased 324% in the last three years while large-value fraud cases involving amounts of Rs 50 crore and above had increased almost tenfold.
The CBI chief director also complained of "reluctance" on the part of banks to declare bad accounts as frauds despite there being clear-cut manifestation of malfeasance, saying this hampered probes by his organisation. "There is need to realise that the delay in reporting of a fraud will adversely affect the tracking and recovery of proceeds of crime as the initiative is lost due to delays. Another issue is the fixing of accountability of staff and there are often differences of opinion between CBI and banks regarding the role of public servants. In my view, there should be no reason for denial of sanction for prosecution wherever mala fide acts by delinquent officials caused huge losses to the bank. CVOs present here may please keep this in mind while examining CBI reports in future," he said.
Rangarajan, however, pointed out that a certain amount of "risk-taking" was inherent in the task of banking. "We should not completely eliminate risk-taking of banks. Loans may have been given based on certain growth projections, but the growth did not happen. So the causes and factors behind NPAs may be beyond the control of the banks and individual officers cannot be held responsible (in every case). You need to go behind the reasons for NPA... you will have to see if the act of officials was motivated for personal benefit. If it is so, the action must be punished but every NPA is not due to motivated actions of bank employees," he said.
The CBI director quoted Mark Twain to stress his point that timely criminal investigations into the cause of NPAs were the need of the hour. "A humorous definition of a banker in words of Mark Twain is: 'A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain'. If we see the figures of NPAs and number of high-value frauds, it seems to be raining quite heavily. The question is whether the bankers will be able to get their umbrellas back or not? And further, even if they get it, will it be in its original shape?" Sinha asked.
Rangarajan, however, cautioned that CBI had a "very delicate task" at hand while dealing with NPAs. "Banking system is based on two attributes - safety and soundness. Banks deal with other people's money, so it is important that this money remains safe but banks cannot offer extreme security, which may mean doing nothing with the deposits. Banking should hence be sound too, so banks should be able to earn," he said.
(3) CM Inaugurates City’s First e-Court
Mr U.C. Desai, ex-banker and a critical reader of our web site has made reference to the following news item published in news papers:-
CM inaugurates city’s first e-court
Mumbai Mirror | Aug 16, 2013, 12.00 AM IST
Chief Minister Prithviraj Chavan inaugurated the first electronic court, which is part of the Bombay High Court, on Thursday.
After the inauguration, a case was taken up for hearing in court room number 47 in the Bombay High Court building and the Chief Minister, the Chief Justice and other judges watched proceedings in the central hall where a screen was put up.
(4) How to make Happiness a Habit
Mr Firoz Poonawalla has sent the following useful piece:-
How to make happiness a habit
I'm not one who believes you can be happy all the time, but I have learned you can be happy much of the time. And that's not something that depends on how your day is going or how others treat you -- it depends on what you do on a regular basis.
I remember being unhappy most days, at one point in my life. It wasn't because I hated the people in my life -- I have a lovely wife,(GOD'S OWN GIFT) other wonderful family members and friends. It was because I was unhappy with myself, and that caused growing debt problems, unhappiness with my job, health problems and more. I felt like I couldn't change any of that.
Then one day I sat down and made a list. I make a lot of list -- it's one of my favourite habits -- but this list seemed to have a magical power. It was a list of the things I was grateful for. Amazingly, there were a lot of things on the list, from things about my wife, relatives, and friends, to things about my job, about nature around me, about my life. This list was magical because I went from feeling a bit depressed about everything, and hopeless and helpless, to much happier. My mindset shifted from the things I didn't like or didn't have, to the things I was really happy I had. And I was in control.
Since then I've experimented with a number of habits and have found a couple things to be true:
1. A handful of activities can actually make you happy.
2. If you incorporate them into your life on a regular basis (make them into habits), you'll be happier regularly.
And those might seem to be small realizations, but actually they're huge.
The Habits That Make You Happy
So what habits make you happy? Try doing these on a daily basis, and see if you get the same results:
7 Steps to Happiness
Think Less, Feel More
Frown Less, Smile More
Talk Less, Listen More
Judge Less, Accept More
Watch Less, Do More
Complain Less, Appreciate More
Fear More, Love More
3. Meditate. I've called this a Fundamental Habit, because it affects everything else. Meditate for just two minutes a day, and you'll create a habit that will allow you to notice your thoughts throughout the rest of the day, that will help you to be more present (unhappiness comes from not being present), that will help you notice the source of anxiety and distraction. That's a lot that can be accomplished in two minutes! Sit every morning when you wake, and just notice your body, and then your breath. Notice when your mind wanders, and gently return to your breath. You become the watcher of your mind, and you'll learn some useful things, I promise.
4. Exercise. Everyone knows you should exercise, so I'm not going to elaborate on this point. But it really does make you happier, both in the moment of exercise (I'm exerting myself, I'm alive!) and throughout the rest of the day. Exercise lightly, if you're not in the habit yet, and just for a few minutes a day to start out. Who doesn't have a few minutes a day? If you don't, you need to loosen up your schedule a bit.
There are a number of other habits that also help: mindful eating, drinking tea, doing yoga, socializing with others. But these incorporate meditation (they're more active forms of meditation), and exercise, and helping others, and gratitude (if you're doing it right). So I wanted to list the most basic habits, and then you can expand to other areas.
How do you form these habits? One at a time, starting as small as possible, with some social accountability. Set these habits in motion. You'll notice yourself becoming more present, more grateful, more other-focused. The shift that results is nothing short of a miracle.
DRT Solutions Weekly Mail – 275th Issue dated 16th August ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Bombay HC’s First Paperless Court to Start Today
The following news item published in net edition of DNA is informative and useful:-
Bombay HC's first paperless court to start today
Thursday, Aug 15, 2013, 10:57 IST | Agency: DNA
On Independence Day, the Bombay high court will start its first paperless court. Petitions will be filled on pen drives and advocates will argue their cases by referring to information stored in laptops.
The Bombay high court, will be India’s second high court, after Delhi, to have an e-court.
The e-court, presided over by Justice Nitin Jamdar, will commence from August 15, and will take up company matters to start with. Later, it will also take up other cases.
Prothonotary, senior master, DV Sawant said, “This is a pilot project and it will be extended to other courts soon.”
The Bombay high court has already started e-payment of court fees which
has received good response.
The e-court programme is a central government initiative to computerise district and subordinate courts and to upgrade ICT infrastructure of the Supreme Court and high courts.
Under the project, 2,249 courts in 969 court complexes are expected to be computerised by March 31, 2014.
(2) SMS Case Tracking System Launched in Tripura High Court
The following news item is self explantory:-
Lokur said, "It will facilitate day to day requirements of the people seeking information about the precedents and the case laws and also provide information through the use of technology about the way courts function and interact with the litigants, lawyers, judges and administrators."
Lokur added that timely availability of information has helped speedy disposal of cases in courts besides helping hundreds of justice-seekers who come to court just to enquire about the date of next hearing.
(3) Law Minister for Audio Recording of Trial Court Proceedings
The following PTI News item published in Economic Times is self explanatory:-
Law Minister for audio recording of trial court proceedings
"...We want that to bring transparency, at least the proceedings are audio recorded but the government cannot do this on its own.
"We will discuss it with judiciary, Chief Justices, because trial courts fall under and till the High Courts approve this, it can not be implemented. But our talks will continue," Sibal told reporters here.
He said although the courts are public places, due to lack of recording facilities, nobody knows what is happening inside them.
"In other countries, proceedings of the trial court are audio recorded but not in India.... What the judge is saying, witness is saying, cross examination is saying, how work is taking place, nobody knows although the courts are public places," Sibal said.
He proposes to use the facility to hold real-time consultations with them on important cases.
Video conferencing facility is available to top bureaucrats to hold interaction while sitting in their offices.
(a) We have been emphasizing the above since past 10 years and covered this topic in several weekly mails as well as in our conferences.
(b) It is reiterated that in US, court room recording is being carried out since 1935. This work is outsourced to outside agencies. They make audio and video record. The audio is transcribed and provided to all concerned including the litigants on the same day, Further the video, audio and transcript is also made available on the court web site on the same day.
(c) Our Law Ministers (including Mr Sibbal), Chief Justice of Supreme Court of India, Chief Justices of the High Courts, Chairman Law Commission, President Bar Association etc have visited US Courts several times and have spent crores of public money on such tours but have no sincere desire to implement such important aspect of court proceedings.
(d) On account of such lethargic attitude only, eminent Justice Krishna Iyer has said that our courts are 200 years behind those in developed countries. It is because of such backwardness, now there are more than 6 crores cases pending in the courts.
(e) Incidentally it is pointed out that we have developed the process of ‘Video Arguments’ first time in India and demonstrated it before the District Judge, Indore in 2007 and have sent the copies of DVDs to High Courts and Supreme Court but nobody has shown any interest so far. We shall still continue our efforts with hope that some day it has to be implemented.
(5) Extract from the Web Site of IASS (International Association for Scientific Spiritualism
The following is the valuable extract from the web site of IASS:-
DRT Solutions Weekly Mail – 274th Issue dated 9th August ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Change in Our Mobile No:-
Please note that our new mobile no is +91 969 110 3689. This has also been displayed on our web site in all the pages in place of the old mobile no. All calls will automatically be diverted to the new number. The change has been necessitated due to technical reasons for better network coverage and efficiency using Samsung Galaxy S4 mobile handset based on GSM technology instead of CDMA. Galaxy S4 is a marvel in smart phones which we are now using as a near replacement for computer, tablet, camera, voice recorder and handycam with most convenient pocket portability due to remarkable convergence in telecom technology.
(2) Advocates to Access their Case Flow via Smartphones.
The following useful news item is self explanatory:-
Advocates to access their case flow via smartphones
HT Correspondent , Hindustan Times New Delhi, August 08, 2013
First Published: 02:15 IST(8/8/2013) | Last Updated: 02:18 IST(8/8/2013)
Advocates and litigants having mobile phones with Android Operating System-based internet connection can now easily access Supreme Court Display Board and know the flow of their case on any particular day.
Chief Justice of India P Sathasivam on Wednesday launched the facility at a function at the apex court in the presence of Law Minister Kapil Sibal, judges and bar leaders.
The CJI also inaugurated some other e-facilities, including SMS on filing and registration of cases. This facility enables an Advocate on Record (who does actual filing of cases in the SC) and parties in person to receive instant update through SMS on their mobile on successful filing or registration of their case.
Details about filing and pendency of courts across the country will also be easily accessible with the inauguration of the National Judicial Data Grid (NJDG) by the CJI.
With the launch of the first phase of NJDG, case data of all the courts, including those at district level, will be available on a single website - . The portal will have data from around 10,000 courts.
"Any visitor to this website can access the status of the case, the cause list of the district courts and in some cases, daily order or judgement of the case, searchable on the basis of case number, party name, advocate name etc.," Justice Madan B Lokur, in-charge of the e-committee which was entrusted with the task of developing the portal, said.
CJI Sathasivam appreciated the effort and said this will go a long way in administration of justice as the Chief Justices of different high courts will have the actual idea of case status of different courts in the state.
Justice Lokur said the data of all the courts will also serve as a "backbone database" for the NJDG which is intended to become a case information storehouse for justice delivery system.
Law Minister Kapil Sibal said it will help in court management and will bring in more transparency.
(3) High Courts asked to give Priority to Old Cases.
The following useful news item is self explanatory:-
High courts asked to give priority to old cases
IANS | New Delhi August 7, 2013 Last Updated at 20:54 IST
Thursday, August 8, 2013 | 01:35 PM IST
Chief Justice of P.Sathasivam Wednesday said that he has asked chief justices of all the high courts to give priority to the old cases pending for years, including those concerning women and children.
Chief justices of the high courts have also been asked to provide details on pendency of cases on monthly basis and those settled by the court in the preceding month, said the CJI while inaugurating a litigant-lawyer friendly apex court portal that would provide instant information on the status of their cases and other information.
He said that laptops have already been provided to 13,000 judicial officers in the country.
The portal would soon have more digital platforms to provide online information to the lawyers and litigants including to the judges. Judges will be able to know in how many other courts, cases are being heard on the laws being considered by them.
Congratulating Justice Madan B. Lokur under whose stewardship the court's e-committee developed the portal, Union Law Minister Kapil Sibal said that it was only through technology that transparency could be achieved. He said that there was always an element of discretion in the human dealings.
Sibal advocated uniformity in software of the portals of all the courts from apex court to subordinate courts to facilitate inter-operatibility and enable information about all the courts to be available easily.
(4) Pending Court Cases – Likely to Touch Six Crores Mark
The following news item is self explanatory:-
Tantia, who was on this post for little less than two years, had regularly expressed concerns about the increasing number of pending cases and had taken certain initiatives to speed up dispensation of justice. It was under his guidance that case management system was introduced at the high court, as a result of which the disposal rate of cases pending for more than ten years increased to 49% from the previous figure of 14% annually.
The pendency of cases is likely to trouble the new chief justice as well because of a shortage of judges in the high court. Sources said the sanctioned strength of judges in Jharkhand high court was increased from 12 to 20 some years ago, but at no point of time there have been more than 14 judges working together.
With the retirement of justice Tantia, the number of sitting judges in the high court has come down to ten, a figure expected to fall to nine after justice , who is attaining superannuation on August 18, retires.
Talking to the media before leaving for Jodhpur, justice Tantia reiterated his concern about the pendency rate.
"The number of pending cases in various courts of the country is likely to touch the six crore mark soon and each and every court has to be cautious about reducing this burden," he said.
Admitting that there has been an increase in the number of public
interest litigations, Tantia said that at times PILs are good for the
cause of common people.
(5) Wonderful Health Books
We found that the following books are really wonderful and most useful in life. All these books are published by IASS (International Association for Scientific Spiritualism) vide details on their web site www.tap-seva-sumiran.com We got all these books from them online:-
(a) Dilemma of Medical Science – Dr SSL Srivastava, MD, FIAMS, FFIACM, FICN, FASI
(b) Food Not the Source of Energy – Authentications from Eminent Doctors
(c) Divine Cure – Dr. Gur Harakh Singh, MBBS
(d) Health Promotion & Disease Prevention through Tap Seva Sumiran – Dr SSL Srivastava and 3 other Doctors
(e) Chikitsa Vigyan ki Bhrantiyan – Dr SSL Srivastava
(f) Jeevani Shakti Kaise Jagayen – Dr Chandra Singh
(g) Yogi aur Yog Sadhna – Akhileshji
(h) Light on the Five Illusions – Madan Mohan Sahai
(i) Dhyan ka Vigyan – Akhileshji
(j) DVDs of Akhileshji on Manas Yog Sadhna
DRT Solutions Weekly Mail – 273rd Issue dated 2nd August ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Gujrat High Court Judgment laying down Securitization Act not Applicable to Co-operative Banks
The full text of the judgment with comments and important portion marked in Red is given on our web site vide link :-
The details are as under:-
Rajendra N. Shah vs Unknown decided on 22.04.13 by Gujrat High Court Writ Petition (PIL) No – 166 of 2012
Bench: Mr Bhaskar Bhattacharya and J.B. Pardiwala
DRT Solutions Citation – DRTS-020-Rajendra Shah vs Unknown-2013
have now numbered the Judgments published on this web site as DRTS-00. Accordingly
all the judgments published so far have been numbered. The judgment on
this page is numbered as DRTS-020.
Comments by DRT Solutions
Gujrat High Court Judgment of 2013 laying down that Securitization Act not Applicable to Co-operative Banks
Utility of this Judgment – Wherever the co-operative banks have invoked
or going to invoke the Securitization Act, such action can be stayed by
The full text of the judgment is given below which is self explanatory. Important portions have been marked in Red and are reproduced below:-
22. Thus, the amendment is violating the basic structure of the Constitution so long as the subject of Co-Operative Societies is in the List II of the 7th Schedule and at the same time, the provisions of Article 368(2) has not been complied with. The Constitution has not permitted curtailment of the power of the State Legislatures over the subject mentioned in List II without taking recourse to Article 368 (2).
27. We, therefore, allow this Public Interest Litigation by declaring that the Constitution [97th amendment] Act, 2011 inserting part IXB containing Articles 243ZH to 243ZT is ultra vires the Constitution of India for not taking recourse to Article 368(2) of the Constitution providing for ratification by the majority of the State Legislatures. This order, however, will not affect other parts of the Constitution [97th amendment] Act, 2011.
(2) Plan to Computerize DRTs put on hold
The following news item appeared in the e-paper of ‘Live Mint & THE WALL STREET JOURNAL’ of ‘Hindustan Times’Dated 01.08.13:-
Plan to computerize debt recovery tribunals put on hold
The finance ministry is reconsidering the move, given the high cost of computerizing these tribunals First Published: Sun, Jul 28 2013. 11 45 PM IST
Sun, Jul 28 2013. 11 47 PM IST
The government has put on hold its plans of fully computerizing debt recovery tribunals (DRTs), a move that may further delay the overhauling of these tribunals saddled with long delays and pending cases.
Given the high cost of computerizing these tribunals, the finance ministry is reconsidering the move, two people familiar with the development said, requesting anonymity.
As on March, there were 40,866 cases pending in the tribunals involving an outstanding amount of Rs.1.41 trillion.
Implementation of electronic governance in DRTs would have helped banks, defendants and recovery officers by automating all processes and procedures and expediting the recovery process of public money, the government had said in an answer to a question in Parliament in March.
It would have ensured applicants and defendants got hassle-free access to information, made it easier for banks and financial institutions to track case-related information and helped recovery officers enforce orders. DRTs would also be able to efficiently manage case records and improve the efficiency of their services through this computerization.
“The approximate cost of this plan is around Rs.200 crore. The question being discussed is whether this will solve the problems plaguing the DRTs,” said one of the people mentioned above.
“DRT should look at appointing judges first before taking up computerization, etc. In key areas, there are no judges in DRT. They are also understaffed and frequently banks send their legal officers on deputation to DRT,” said the chairman of a state-run bank. “Yes, with computerization, things should have improved provided there were judges to pass a speedy judgement.”
Banks can take recourse to DRTs to recover any asset of a borrower, irrespective of whether they are pledged with the bank or not. This is in contrast to recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, where only assets that are mortgaged with the banks can be recovered.
The situation has improved over the last year, said another senior official with another state-run bank. “The staff is being recruited and the situation is much better than before. However, it will take a long time for reducing the number of pending cases,” he said. But because of the long time taken by DRTs, partly due to the delaying tactics used by lawyers of the borrowers, banks prefer the Sarfaesi route, he said. Also, when DRT rules in favour of the banks, it can be challenged with the appellate tribunal in DRT and then at the Supreme Court, which makes it a long process, he added.
The number of pending cases at the end of 2012 was 41,205 involving Rs.1.30 trillion, compared with 54,061 cases involving Rs.1.46 trillion at the end of 2011.
To improve the functioning of DRTs, the government enacted the Enforcement of Security Interest and Recovery of Debt Laws (Amendment) 2012. Under this, a defendant will have to file a written statement in a case within 30 days. The number of adjournment per case was also restricted to three per defendant. DRTs have also been empowered to pass an order acknowledging the settlement reached between banks and borrowers.
Ajay Gautam, an advocate who handles cases in DRTs, said presiding officers take a long time in giving stay orders for applications.
“When we approach the tribunal for getting a stay order for an auction by the bank, the presiding officer does not decide the case in a day or two. Sometimes a stay order is given after the bank auctions the property,” Gautam said. “Because of this, the bank even adds the cost involved in auctioning, like advertisements in newspapers, to the client’s account.”
(3) BRAINY …….Beauty of English Language…..
Mr Firoz Poonawalla has sent the following interesting piece:-
This has got to be one of the cleverest pieces
in awhile. Someone out there Must be “deadly" atScrabble. (Wait
till you see the last one)!!
When you rearrange the letters:
DRT Solutions Weekly Mail – 272nd Issue dated 19th July ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Wilful Defaulter – Declaration – Bombay High Court, Nagpur Bench orders Interim Stay
One of our clients informed that Nagpur Bench of Bombay High Court has ordered issuance of notice before admission and also granted interim relief restraining respondents from publishing including displaying the names of the petitioners under Wilful Defaulters’ List.
The matter of declaration of wilful defaulter has been covered by us in several previous weekly mails wherein it was pointed out that:-
(a) In one case, the district court has granted such stay against the injunction suit.
(b) In another case, during the proceedings of relevant Injunction suit in the district court, the bank itself withdrew declaration of the wilful defaulter.
(c) Few writ petitions in High Courts have been filed and are at various stages of adjudication.
(d) Filing of injunction suit in the civil court is preferable compared with filing writ petitions in High Court as the facts relating to the procedure laid down by the RBI may be ascertained in better manner by trial court compared with writ court. Further much greater time will be consumed in trial court apart from having larger number of higher courts for appeal jurisdiction. As a result the whole intention of harassment by the bank will be totally lost rather the bank officials will get involved in yet another litigation.
(2) ‘The Judgment will Create Awareness’
The following recent interview published in “Frontline’ magazine of ‘The Hindu’ is self explanatory:-
‘The judgment will create awareness’
Interview with advocate Lily Thomas, the petitioner in the Supreme Court case on Representation of People’s Act. By SAGNIK DUTTA
LILY THOMAS, 85, an advocate in the Supreme Court, has worked on constitutional law, women’s rights and issues of personal liberty. She was the petitioner in the Supreme Court case (Lily Thomas vs Union of India and others) where the court struck down Section 8(4) of the Representation of the People Act (RPA) as being unconstitutional. In 2000, in response to a petition filed by her, the Supreme Court came down heavily on conversion to Islam for the express purpose of entering into a second marriage. Lily Thomas spoke toFrontline about her passion for constitutional values, the possible impact of this judgment on the Indian polity, and the enhanced role of the judiciary and civil society. Excerpts:
The Supreme Court judgment striking down Section 8(4) of the RPA has been hailed as charting a path for decriminalization of politics. What objectives did you have in mind when you filed the petition?
The primary aim that we had in mind was to ensure that Parliament and public service should be free of criminals and corruption. This is our job; it’s the duty of the Bar. With my training and education as an advocate, I would consider it a serious dereliction of duty if I did not take up these issues. This petition was filed in 2005. Also, the Supreme Court has played an important role as the custodian of political ethics. It was receptive to this petition. There was an earlier judgment of the Constitution Bench of the Supreme Court inK. Prabhakarn vs P Jayarajan in 2005 which was interpreted by the respondents as upholding the validity of Sub-section(4) of Section 8 of the RPA. In the present judgment, the Supreme Court cited the case but said that the issue of constitutionality of Section 8 was not at all considered by the Constitution Bench.
What ramifications will the judgment have on Indian polity? Also, why did you think the Supreme Court did not apply the judgment retrospectively on politicians who have resorted to the use of this section?
It is for us as a society to make the judgment work. Corruption and criminality have become part of elections. This pattern of democracy has to be changed. All sorts of evils have crept into the practice of fighting elections. Thanks to judgments like these, our civil society is more active now. The civil society is a natural social phenomenon. We must create “centres of leadership”. This is how democracy works. Then only will you become a part of the system. Otherwise, the government becomes an organisation run according to a patron-client system. Citizens do not have access to administration because of corruption. We must create access to an administration and a political system free of corruption.
During the hearing of this case, S.N. Shukla, advocate, cited a passage from the Constituent Assembly debates which clearly provides for disqualification of a Member of Parliament convicted of a crime. Though Article 102 of the Constitution allows Parliament to define disqualification, the right to appeal and the consequent three months’ deferral of disqualification are not allowed by the Constitution. I think it was wise on the part of the Supreme Court not to apply the judgment retrospectively because this would have created a whole lot of practical problems. A huge amount of litigation would have come in then and it would have been a huge burden on the administration.
The judgment has once again brought to the fore the issue of Parliament restricting the powers of the government when legislation violates constitutional principles. Does this pre-empt more conflicts between the judiciary and the executive?
The judgment is a clinical interpretation of law, of what the Constitution says. The judiciary very well knows its own limits. The interpretation of law is the function of the judiciary. This judgment will make people think. It will create awareness about constitutional principles.
Doubts have been raised about the political implications of this judgment on the stability of governments in the long run. For instance, if a number of representatives are convicted on criminal charges, a crisis in the government might arise. What are your thoughts on this critique?
If stability is coming from criminals, it is against natural law. Crime does not give stability. Ethics give stability. Stability comes from natural justice. Politicians are making this argument because of their own vested interests. J.M. Lyngdoh had once referred to corrupt politicians as “cancer of society”. Only a clean, “satvic” image of Parliament can provide stability.
Are there more such petitions in the offing? What issues do they address?
The court will get to know about the petitions first [smiles]. There is no stale news for the court.
(3) 10 Common Habits that Damage the Kidneys
Mr Firoz Poonawalla has sent the following useful information:-
10 Common Habits that damage the kidneys
DRT Solutions Weekly Mail – 271st Issue dated 19th July ’13
All Weekly mails right from 1st Issue to latest, click links on top of this page
(1) Securitization Act not Applicable to Co-operative Banks
In previous mails we covered this item. However there were few queries from the clients as well as recipients of our weekly mails. Our comments are as under:-
(a) The relevant news items are reproduced below after these comments.
(b) The relevant judgment of the Gujrat High Court is available on net vide link http://indiankanoon.org/doc/114669987/
(c) A study of the said judgment reveals that the law relating to co-operative societies and co-operative banks being a subject matter of State Govts, the Central Govt has no powers to enact or relevant central legislations will not govern them.
(d) It is complex legal matter and since 1965, the Supreme Court has been facing several questions on this subject and several writs are still pending in the Supreme Court.
(e) On account of political reasons, the State Govt do not want to lose control on the co-operative banks and therefore the matter becomes further complex.
(f) The management of these banks desire to take advantage of the better Recovery Legislations like DRT and Securitization Acts and hence they are trying to invoke the same but they are bound to fail due to overriding legal considerations based on the ultimate mother law i.e. our constitution.
(g) The borrowers are advised to bring the above to the notice of the banks and despite they continue to take action, the matter may be put up before the DRT or the court of law praying to grant stay. If there is any adverse order, they may appeal to DRAT and or the High Court.
(h) As regards multistate co-operative banks, the above will not apply as they are governed by the central legislation.
Premal Balan | Ahmedabad April 22, 2013 Last Updated at 17:16 IST
Securitisation Act not applicable to cooperative banks: Guj HC
Further says: Securitisation Act would not be applicable to cooperative banks under the union govt notification of Jan 2003
n Monday held that cooperative banks cannot use the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act (SRFAESIA), 2002 or,
for recovery of debts from its defaulters.
gross non-performing assets and restructured loans for the banking
around 10% of the total loan outstanding, which is a big worry, and most
of the bad loans are from PSU banks," says Pankaj Pandey, head of
research at ICICI Securities.
"PSU banks will continue to struggle with asset quality. Also, the Reserve Bank of India's new provisioning norms on bad loans will put PSU banks at further risk," he adds.
"We expect government banks to report disappointing results for the April-June quarter as they may be impacted at the net profit level by higher wage revisions. State-run banks like PNB, BoB, BoI and Canara Bank's headline earnings are expected to come down by 10 to 20% (year-on-year) on higher wage costs and lower loan yields," says Rajeev Varma, research analyst at DSP Merrill Lynch in a note.
Recently, the government asked state-run banks to reduce lending rates, and clear stalled projects. If this happens, it may hit banks' net interest margins adversely and further add to the rising NPAs, fear analysts.
"The pain for PSU banks may continue as non-performing liabilities, coupled with high restructuring, especially in the power sector, may add further pressure," says Manish Karwa, research analyst at Deutsche Bank in a research note.
RBI has issued draft guidelines that would require banks to make higher provisions (standard provisions) and increase risk weightage on exposure to companies that have unhedged foreign-currency exposure. "We believe large PSU banks such as SBI, BoB, BoI and PNB will get impacted as they are involved in lending through foreign currency, especially in long-term loans," says Kotak Institutional Equities in a research note.
The falling rupee has also made things worse for these banks, already grappling with a host of problems.
"Many corporates are under severe stress as the rupee has fallen to 60 against the dollar. We expect the asset quality of PSU banks to deteriorate further as business of many corporates has come under stress," says Amar Ambani, head of research, IIFL.
"We would like to advise investors to avoid PSU banks despite prices falling sharply from their highs," he adds.
(3) Salute to All Parsis
No Indian community internalized the civilizing mission of the British
as did the Parsis. Only 50,000 remain in Bombay today, mainly in South
Bombay, the most disciplined and cultured part of India.
In South Bombay, the cutting of lanes by drivers is punished, jumping a red light is impossible, parking is possible only in allotted areas, roads are clean, service is efficient, the restaurants are unmatched - civilization seems within reach. South Bombay has some of the finest buildings in India, many of them built by Parsis.
The Parsis came to Bombay after Surat's port silted over in the 17th
century. Gerald Aungier settled Bombayand gave Parsis land for
their Tower of Silence on Malabar Hill in 1672. The Parsis made millions
through the early and mid-1800s and they spent much of it on public
The Ambanis built Dhirubhai Ambani International School , where fees are Rs. 348,000 (US $8,000 a year in a country where per capita income is $ 600 per year) and where the head girl is Mukesh Ambani's daughter!!!
The Kingfisher Mallyas gilded the insides of the Tirupati temple with gold.
Lakshmi Mittal, the fourth richest richest man in the world says he's too young to think of charity!! ... He's 57 and worth $45 billion.
The Birla Family built 3 temples in Hyderabad , Jaipur and Delhi .
Hindu philanthropy means building temples. They do not understand social philanthropy.
The Hindus' lack of enthusiasm for philanthropy is cultural. The Hindu cosmos is Hobbesian and the devotee's relationship with God is transactional. God must be petitioned and placated to swing the universe's blessings towards you and away from someone else. They believe that society has no role in your advancement and there is no reason to give back to it because it hasn't given you anything in the first place. Two centuries of British education was unable to alter this.
The Parsis, on the other hand, understood that philanthropy - love of
mankind - recognizes that we cannot progress alone. That there is such a
thing as the common good. They spent as no Indian community had ever
before, on building institutions, making them stand out in a culture
whose talent lies in renaming things other people built.
The Parsis built libraries all over India , they built the National Gallery of Art. The Indian Institute of Science was built in 1911 by Jamshedji Nusserwanji Tata, the Tata Institute of Fundamental Research was built by Dr Homi Bhabha, the Tata Institute of Social Science was built in 1936 by the Sir Dorabji Tata Trust. The Wadias built hospitals, women's colleges and the five great low-income Parsi colonies of Bombay . JJ Hospital and Grant Medical College were founded by Sir Jamsetjee Jejeebhoy.
By 1924, two out of five Indians - whether Hindu, Muslim or Parsi - joining the Indian Civil Services were on TATA scholarships.
They gave Bombay the Jehangir Art Gallery, Sir JJ School of Art , the Taraporevala Aquarium. The National Center for Performing Arts, the only place in India where world-class classical concerts are held is a gift of the Tatas. There are 161 Friends of the Symphony Orchestra of India (SOI) -www.soimumbai.in <http://www.soimumbai.in/> .92 of them are Parsis. For an annual fee of Rs 10,000, Friends of the SOI get two tickets to any one recital in the season, they get to shake hands with artistes after the concert and they get to attend music appreciation talks through the year.
The Parsi dominates high culture in Bombay. This means that a concert experience in the city is unlike that in any other part of India . Classical concerts seat as many as two thousand. Zubin Mehta, the most famous Parsi in the world, is Director of the Israel Philharmonic Orchestra since 1969. He conducts the tenor Placido Domingo, the pianist Daniel Barenboim and the soprano Barbara Frittoli. Four concerts are held at the Jamshed Bhabha Opera House and then one at Brabourne Stadium with a capacity of 25,000.
No other city in India has this appetite for classical music and in Bombay this comes from the Parsis. Despite their tiny population, the Parsi presence in a concert hall is above 50 per cent. And they all come. Gorgeous Parsi girls in formal clothes - saris, gowns - children, men and the old. Many have to be helped to their seats. Most of them know the music.
The people who clap between movements, thinking that the 'song' is over, are non-Parsis. Symphony Orchestra of India concerts begin at 7 pm. Once the musicians start, latecomers must wait outside till the movement ends. The end of each movement also signals a fusillade of coughs and groans, held back by doddering Parsis too polite to make a sound while Mendelssohn is being played. No mobile phone ever goes off as is common in cinema halls: his neighbors are aware of the Parsi's insistence of form and his temper. The Parsis were also pioneers of Bombay's Gujarati theatre, which remains the most popular form of live entertainment in Bombay. Any week of the year will see at least a half dozen bedroom comedies, murder mysteries, love stories and plays on assorted themes on stage.
The Parsis were the pioneers of this, writing and acting in the first plays of Bombay. They also built the institutions that supported this. Bombay 's first theatre was opened by Parsis in 1846, the Grant Road Theatre, donations from Jamshetjee Jejeebhoy andFramjee cowasjee making it possible.
Want to add about the generosity about Ratan Tata who did so much about
the staff of Taj Hotel during the terrorist attack in Mumbai. Not only
that but he also set up camps for all the other victims and their
families who suffered during the attack at Bori Bunder.
The Parsi in Bollywood caricature is a comic figure, but always honest, and innocent as Indians believe Parsis generally to be, rightly or wrongly. In the days before modern cars came to India the words 'Parsi-owned' were guaranteed to ensure that a second-hand car listed for sale would get picked up ahead of any others. This is because people are aware of how carefully the Parsi keeps his things. His understanding and enthusiasm of the mechanical separates him from the rest. Most of the automobile magazines in India are owned and edited by Parsis.
The Parsis are a dying community and this means that more Parsis die each year than are born (Symphony concert-goers can also discern the disappearing Parsi from the rising numbers of those who clap between movements).
As the Parsis leave, South Bombay will become like the rest of Bombay - brutish, undisciplined and filthy.
Preserve this race...You are privileged if you have a Parsi as your friend...He/She is indeed a "Heritage" to be treasured for ever.
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 © 2001-2021 - DRT Legal Solutions, India. All rights reserved.