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Proceedings before DRT is no bar for other proceedings to go on
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 The relation between a banker and a borrower has many facets and multiple agreements for performances of various activities. Return of money by a borrower is just one of them, for which proceedings before the Debts Recovery Tribunal (DRT) either under the RDB Act or the SRFAESI Act is envisaged. That part, disputes between a banker and a borrower on other aspects of their agreement are neither barred by the RDB Act nor limited by the DRT. They can go on simultaneously, without one infringing upon the other
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Guarantors are not protected under provisions of SICA
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An order restraining recovery proceedings against an Industrial Company issued by BIFR under provisions of SICA does not cover guarantors of the company’s loans. Banks are free to move the Debts Recovery Tribunals (DRT) and proceed against the guarantors of the loans to the company even though they cannot proceed against the company in terms of the stay granted by the BIFR u/s 22 of SICA.
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Costing of suits – Court fees should not be included.
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When an account is declared as Non Performing Asset, every kind of expenses is levied on to the account. Lawyer’s fee, advertisement fee, insurance premia paid, Court fees paid etc. etc. While each one of them needs to be examined in the circumstances of the case, but the fee paid to the Debts Recovery Tribunal (DRT) for the purpose of filing an application can form part of the capital and cannot be capitalized as well subjected to contractual rate of interest.
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