Explained| Supreme Court’s judgment on classifying borrower’s accounts ‘fraudulent’ by Lender Banks vis-a-vis Audi Alteram Partem
‘Audi alteram partem application cannot be impliedly excluded under the Master Directions on Frauds.’
Borrower
Only a secured property used as agricultural land can be exempted under SARFAESI Act; Supreme Court sets aside Telangana High Court’s order
Supreme Court opined that instead of shifting the burden of proof on the secured creditor to prove that the secured property was not agricultural property, the Telangana High Court should have laid down the burden of proof on the borrowers.
Borrower to pre-deposit 50% of the “debt due” including ‘interest’ under Section 18 of SARFAESI Act: Supreme Court
The Court was called upon to decide as to while calculating the amount to be deposited as predeposit under Section 18 of the SARFAESI Act, 50% of which amount the borrower is required to deposit as pre-deposit and whether while calculating the amount of “debt due”, the amount deposited by the auction purchaser on purchase of the secured assets is required to be adjusted and/or appropriated towards the amount of pre-deposit to be deposited by the borrower under Section 18 of the SARFAESI Act.
Writ petition under Article 226 of the Constitution cannot be filed for seeking alteration in contract: Delhi High Court
The Delhi High Court held that a borrower cannot ask for alteration of contract by way of a writ petition and a contract can only be altered through mutual consent between the parties.
Bombay High Court| S. 14 of SARFAESI Act empowers the Designated Authority only to assist secured creditors in taking possession of secured assets and nothing more
Bombay High Court: While deciding the instantwrit petition wherein the issue was regarding transgression of Additional District Magistrate’s jurisdiction under Section 14
Bombay High Court | Yes Bank-Dish TV Case: Beneficial Owner of pledged shares, contractually entitled to all rights, including voting rights in Annual General Meeting
Bombay High Court: The Division Bench of G.S.Patel and Madhav J Jamdar, JJ. dismissed an appeal ruling that lenders are entitled to
Borrower’s offer to pay Rs.71 lakhs as a purchaser of mortgaged property will not discharge him from entire outstanding liability of approx 1.8 crores: SC
Supreme Court: The Division Bench of M. R. Shah* and Sanjiv Khanna, JJ., held that the entire liability outstanding against the borrower
Del HC | Can ‘Pawnor’ under Ss. 172/176 of Contract Act be made liable for repayment of entire debt, in absence of any guarantee being furnished? Succinct Report
Delhi High Court: The Division Bench of Rajiv Sahai Endlaw and Asha Menon, JJ., held that the pawnor, merely by his act
Ker HC | [SARFAESI Act] Whether the State has better right in comparison to Banks and other Financial Institutions over secured assets for recovery of its dues; legal position reiterated
Kerala High Court: A.M. Badar J., allowing the present petition, quashes the attachment made by the State authorities to recover tax dues.
Causatum of Corona on the Banking Sector
by Arjun Garg* & Rati Tandon**