Court : DRAT Madras
Reported in : I(2003)BC92
..... 3095 has observed that "rbi directives have not only statutory flavour, any contravention thereof or any default in compliance therewith is punishable under sub-section (4) of section 46 of banking regulation act, 1949. the court can act on assumption that transactions or dealings have taken place and accounts maintained by banks in conformity with rbi directives." 9. so it cannot ..... on such principal sum i.e. the principal sum adjudged on the date of the suit. it is well settled that the use of the word "may" in section 34 confers a discretion on the court to award or not to award interest or to award interest at such rate as it deems fit. such interest, so far ..... uniform for all the years. that is why the rbi issues guidelines and circulars then and there depending upon the business transactions and money lending. when the bank has acted as per the directions given by the rbi, by no stretch of imagination it can be stated that the respondent bank has charged more interest. even under the .....
Tag this Judgment!Court : DRAT Madras
Reported in : I(2003)BC71
..... standi to file the suit, he further submitted that under the recovery of debts due to banks and financial institutions (rddb&fi) act, 1993, the rbi is not a bank within the definition of section 2(d) of the act and as the amount claimed is due to the rbi, the same will not fall within the jurisdiction of this tribunal.3. ..... -section of section 6 of that act." 11. accordingly, the state bank is the agent of the reserve bank of india and has ..... entrust to it." "other business which the state bank may transact-- subject to the other provisions contained in this act, the state bank may carry on and transact the business of banking as defined in clause (b) of section 5 of the banking regulation act, 1949, and may engage in one or more of the other forms of business specified in sub .....
Tag this Judgment!Court : DRAT Madras
Reported in : II(2004)BC223
..... regard to recovery of the amount must be filed only by the bank. he drew my attention to the provisions of the rddb and fi act, 1993 under section 17 and section 19(1) and (2) of the act. (1) a tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applications from the banks and ..... , it can appoint receiver on the petition so made before it. it is not necessary that only the bank must file the petition for appointment of receiver.9. section 19(25) of the act read that, "the tribunal may make such orders and give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse ..... of its process or to secure the ends of justice." 10. under section 19(25) of the act, the drt is compowered to pass order to secure the ends of justice. in the case on hand, the bank initially filed a petition for appointment of receiver .....
Tag this Judgment!Court : DRAT Madras
Reported in : II(2004)BC228
..... on the discounting of bills which comes in the course of business activity undertaken by the bank and it comes under the definition of debt under section 2(g) of the act. section 2(g) reads as follows: "debt" means any liability (inclusive of interest) which is claimed as due from any person by a bank ..... would come under two different causes of action and jurisdiction of debt recovery tribunal under recovery of debt due to banks and financial institutions act is exclusive and section 18 of said act ousts jurisdiction of other courts." 10. the apex court has further observed that "the settled legal position is that letter of credit constitutes ..... v. material marketing company and ors., special leave petition no. 9298/2000, has held that even under rddb & fi act the tribunal has got discretionary power to award interest under section 19, sub-section 20 of the act. section 19(20) reads as follows: "the tribunal may after giving the applicant and the defendant an opportunity of being heard .....
Tag this Judgment!Court : DRAT Madras
Reported in : I(2005)BC10
..... spirit of the consortium agreement and as per the terms arrived at between themselves, then that amount is certainly a "debt" within the meaning of section 2(g) of the rddb & fi act, for which syndicate bank is entitled to file oa in drt against canara bank to realise its money which rightfully belongs to them as per their ..... syndicate bank. this is in short the case of the syndicate bank.10. now, if one carefully reads the definition of "debt" as stated in the rddb & fi act, the alleged transaction certainly comes within the four comers of the term "debt". forming of consortium, lending money jointly in certain proportion to the borrowers etc. is a transaction ..... cannot seek direction to deposit the alleged amount by the respondent bank and that it is not a "debt" as defined under the provisions of the rddb & fi act, 1993. it is also contended that the appellant bank cannot seek enforcement of the inter se agreement of the financial institutions inter se before the tribunal and the tribunal .....
Tag this Judgment!Court : DRAT Madras
Reported in : IV(2005)BC154
..... notice. there may be some meaningful consideration of the objections raised rather than to ritually reject them and proceed to take drastic measures under sub-section (4) of section 13 of the act. once such a duty is envisaged on the part of the creditor it would only be conducive to the principles of fairness on the part ..... the guarantor and admittedly, no notice was issued to the appellant and, hence, the entire proceedings taken pursuant to the issuance of the notice under section 13(2) of the act are vitiated.5. the learned advocate for the appellant has further submitted that the first respondent-bank has not even complied with the conditions imposed by ..... notice to the second respondent alone are vitiated and liable to be set aside. the appellant also submitted that the definition of borrower as defined in section 2(f) of the act includes the guarantors also, which states, "any person who has been granted financial assistance by any bank or financial institution or who has given any .....
Tag this Judgment!Court : DRAT Madras
Reported in : III(2005)BC193
..... deeds in respect of the property which was purchased by the appellant, the appellant is a necessary and proper party for proper adjudication. incidentally, respondent bank relied upon section 171 of the contract act, which reads, "bankers, factor, wharfingers, attorneys of a high court and policy brokers may, in the absence of a contract to the contrary, retain as ..... contention is that the claim of the respondent bank in the present suit is not a 'debt' within the meaning of definition under clause (g) of section 2 of the rddb&fi act, 1993, and the suit itself is not maintainable and inasmuch as the ta-256/ 2001, is also not maintainable. but whereas, the respondent bank's ..... bank cannot exercise the general lien in respect of the title deeds of the immovable property as the title deeds are not 'goods' as defined under section 171 of the indian contract act, 1872.in any event, the appellant is not liable to answer any of the claims of the respondent bank and, therefore, she is an unnecessary .....
Tag this Judgment!Court : DRAT Madras
Reported in : III(2005)BC181
..... away by the appellant without paying any amount to the respondent bank. it was further stated that the lease was in gross violation of the provisions of section 65(a) of the transfer of property act, 1882 and, therefore, the respondent bank prayed for receiver to take over the properties and monitor the functioning of the business and remit the sale proceeds ..... , without the consent of the bank, has leased out the hypothecated property and the very leasing itself is illegal and the same is in contravention to the section 65(a) of the transfer of property act, 1882. as the lessee is using the plant and machinery to the maximum extent possible, it would definitely impair the value of the properties offered as .....
Tag this Judgment!Court : DRAT Madras
Reported in : III(2005)BC196
..... of guarantee in respect of a past transaction is a sufficient consideration to the surety for giving the guarantee. but, however, illustration (c) to section 127 of the contract act states that if the consideration was passed earlier and the surety agrees to pay the amount in default of the principal debtor without passing consideration contemporaneously, ..... to b.c. afterwards, without consideration, agrees to pay for them in default of b. the agreement is void." on a plain reading of section 127 of the contract act, it would not give room to any doubt, that if the guarantee agreement executed is for the benefit of the principal debtor then it may be ..... sufficient promise made by him for the benefit of the principal debtor and it is a sufficient consideration to the surety for giving guarantee as postulated in section 127 of the contract act, 1872, which reads as under: "consideration for guarantee.--anything done, or any promise made, for the benefit for the principal debtor, may be .....
Tag this Judgment!Court : DRAT Madras
Reported in : IV(2005)BC136
..... be either oral or written as set out in section 126 of the contract act and as such, tripartite agreement between the surety, principal debtor and creditor is not contemplated, as in every contract of guarantee there is an implied ..... guarantees the debt and no doubt, the consideration for the contract may move either from the creditor or from the principal debtor or both. even section 145 of the contract act provides that in every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety. the contract of guarantee may ..... entire liability on the guarantors. it is, therefore, submitted that letters of guarantee in exhs. a21, a23 and a28 are not legal and valid as section 142 of the contract act states, "any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and consent, concerning a material part of .....
Tag this Judgment!