DELHI HIGH COURT: THERE CAN BE SIMULTANEOUS PROCEEDINGS UNDER SARFAESI AND ARBITRATION ACT FOR RECOVERY OF LOAN ARREARS.

The Delhi High Court, on Thursday, held that arbitration and SARFAESI proceedings can be resorted to simultaneously for recovery of loan arrears.

According to Justice Navin Chawla, “As the SARFAESI Act and the Arbitration /Debt Recovery Act are held to be complementary in nature and the doctrine of election has been held to be not applicable, it cannot be said that if a party has invoked one remedy, it is debarred from invoking the other during the pendency of the first one. Under the SARFAESI Act, especially under Section 13 thereof, the secured creditor will proceed against the security given for the loan. The Arbitration Proceedings and SARFAESI Act proceedings can go hand in hand. It has held that the provisions of SARFAESI Act are a remedy in addition to the provisions of the Arbitration Act. The two Acts are cumulative remedies to the secured creditors. While SARFAESI Act proceedings are in nature of enforcement proceeding, the arbitration proceedings would be in form of an adjudicatory process. In the event that the secured assets are insufficient to satisfy the debt, the secured creditor can proceed against other assets in execution against the debtor, after determination of pending outstanding amount by a competent forum i.e. in this case the arbitration.”

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BANKRUPTCY PROCEEDINGS INITIATED AGAINST ESSAR STEEL AND MONNET ISPAT IN NCLT.

News Date: 28.06.2017

Bankruptcy proceedings at the National Company Law Tribunal (NCLT) against Essar Steel and Monnet Ispat were initiated yesterday. They have become the first of the 12 big bad loans cases identified by the Reserve Bank of India (RBI) against which bankruptcy proceedings have been filed.

Standard Chartered Bank, an unsecured creditor filed the suit in the case of Essar Steel (debt of Rs31, 211 crore) and in Monnet’s case (debt of Rs 10,333 crore), State Bank of India (SBI), which led the lending consortium, filed the case.

RBI TO BANKS: EITHER RESOLVE 55 BAD LOANS OR FACE I&B CODE.

News Date: 23.06.2017

The Reserve Bank of India in its effort to check the deplorable level of non-performing assets has asked banks to either internally resolve the 55 bad loans cases within 6 months or be ready to face the proceedings under the Insolvency and Bankruptcy Code.

The banking sector is saddled with NPAs of over Rs 8 trillion, in which 12 accounts are eligible for insolvency proceedings with each of them having over Rs5,000 crore of outstanding loans, which accounts for 25% of total NPAs of banks.

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BANKING REGULATION ORDINANCE, 2017: RBI GETS POWER TO INITIATE INSOLVENCY PROCESS AGAINST DEFAULTERS

News Date: 05 May 2017

President Pranab Mukherjee has approved Banking Regulation (Amendment) Ordinance, 2017 which gives power to Reserve Bank of India to initiate insolvency resolution process in respect of a default, under Insolvency Code of 2016.

 

SCDRC DIRECTS BANK TO PAY 1L COMPENSATION FOR FAILURE TO INFORM LOAN APPLICANT OF REJECTION

News Date: 02 May 2017

State Consumer Disputes Redressal Commission, Maharashtra has held that failure to inform an applicant about rejection of his loan application constitutes deficiency of service on part of Bank.

Banking-Bonum Lex

STATUS QUO ON MDR: RBI

News Date: 31 Mar 2017
RBI has said that its mid-December 2016 ‘special measures’ on rationalisation of merchant discount rate (MDR) will continue whereby MDR for transactions up to Rs. 1,000, and above Rs. 1,000 and up to Rs. 2,000 were capped at 0.25 per cent and 0.50 per cent, respectively, of the transaction value.

 

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BOMBAY HC: MERE REPAYMENT OF LOAN AMOUNT ‘NO GROUND’ FOR QUASHING CHEATING CASE

News Date: 29 Mar 2017
Bombay High Court has held that re-payment of loan amount will not have any adverse effect on a criminal prosecution and observed that offences involving banking and loan transactions were “offences of serious nature, where the FIR cannot be quashed only on the ground that the loan is repaid”.

 

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ITAT, MUMBAI DIRECTS SHAH RUKH KHAN TO PAY TAX ON NOTIONAL RENT FROM DUBAI VILLA

News Date: 23 Mar 2017
Income-tax Appellate Tribunal, Mumbai (ITAT) has ruled that actor Shah Rukh Khan has to include notional rent from his Dubai villa in his income-tax return filed in India.

 

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GOVERNMENT BID ADIEU TO 1% TAX ON CASH PURCHASE OF ABOVE RS 2 LAKH

News Date: 24 Mar 2017
Government has done away with 1 per cent tax on cash payments of over Rs 2 lakh for purchase of any goods or service after it banned cash dealings above that limit from April 1.