|
|
Employee Directors could become vicariously responsible for company loans
|
To be designated as a director in a company is a great feeling and does good to ones ego too. But some employees who are designated as directors becomes guarantors to the loans taken by the company and end up virtually as criminals on the run.
Read more...
|
OTS is available only to pending cases.
|
The Benefit of One "Time Settlement Scheme", popularly known as "OTS", is available only to cases which are still pending for adjudication. Cases that have been disposed off are not entitled for benefit of the scheme. This was held by the Hon'ble Delhi High Court while considering a plea that the petitioner has unjustly been denied the benefit of the OTS even though the bank's very own circular says that the scheme should be extended to even those that cases which are before the Debts Recovery Tribunal or the Debts Recovery Appellate Tribunal. The Court has held that the circulars issued by the Bank are not directions within the meaning of the Banking Regulations Act.
Read more...
|
DRTs cannot adjudicate any claim of the bank.
|
DRTs cannot decide any and every claim of a bank. The Bank’s claim must be within the meaning of the word ‘debt’ as defined in the RDB Act. If the claim does not satisfy the definition of ‘debt’, the DRTs are denuded of their jurisdiction to hear such claims and the Banks must be advised to approach the civil courts.
Read more...
|