Frequently Asked Questions   

Video CD containing Interview of Mr. B.S. Malik, the Supreme Court Advocate as well as Our Client available from us:- This video interview will be immensely useful to industrialists, borrowers, guarantors and bank litigants in DRTs. 

Our Client files damage suit of Rs. 1825 Crores against a bank and a financial institution in Chandigarh:- Our Client, an eminent Supreme Court Advocate (practice more than 25 years in Supreme Court) has filed a damage suit of Rs. 1825 Crores in Chandigarh on 13.01.05 against a bank and a financial institution. The said damage suit was drafted by us and it runs in 118 pages having documents of 537 pages. In a video interview lasting more than 30 minutes on 23.01.05, the said Mr. Malik appreciated our legal concepts, our drafting and our knowledge and experience about application of law of torts to banking, industrial sickness, drt, counter-claim, securitisation act and calculations of damages.

Our Computer Cell for checking of Accounts has started functioning:- Our Accounts Cell headed by an ex-Bank auditor (experience 38 years) has started functioning. You get your entire account checked up and certified by him. Invariably in all cases, the accounts filed by the banks are defective and illegal and thus the very debt due for the purpose of DRT and Securitisation becomes questionable requiring rework and refiling, a difficult task for the banks and financial institutions. Please contact us for the details and charges through e-mail ramkishan@drtsolutions.com  

What is the best legal defence in DRT / DRTs litigations ... ?

(a) The banks and financial institutions are required to file their claims in DRT / DRTs in respect of alleged debts above Rs. 10 lacs.. If the borrowers and guarantors do not defend or do not submit their reply including counterclaims in time, the battle is only one-sided and with passage of time, the said claim of the banks gets legally endorsed. The appeal requires deposit to the extent of 75% of the decree amount, which in case of an industry is impossible. In fact, such condition is ultra-vires the spirit of constitution and the legal validity of the DRT / DRTs Act is questionable on this count. Even if waival of the said 75% is obtained  and if the counterclaim was not originally raised, there is no legal defence in the appeal.

(b) Under these circumstances the borrower is forced to yield to OTS (in short for one time settlement). Our approach and advice is that right from the beginning, the borrower and guarantor should adopt proper legal defence i.e. they should raise their counterclaims. There is always scope for filing counterclaim as the banks in all cases invariably commit mistakes and we have expertise in this area. The counterclaim drafted by us will have tremendous benefits to the borrowers and guarantors. Now such defence has become essential particularly after the Securitisation Act. If you do not submit proper legal defence, your property may be sold out at throw away prices and the banks will file recovery cases for the balance amount with interest. Hence there is no other option but to fight properly using the tool of law.

(c) Kindly go through our articles and Frequently Asked Questions and Answers given in this web site. You will find that the bureaucracy in the banks and financial institutions always and invariably commits several legal defaults resulting into injury, loss and damages to the borrowers and guarantors. Based on these, practically in every case, there is scope for counterclaim. Such counterclaim can be raised even in suit filed accounts. If you have not done so far, you should do it now without further loss of time. We shall suggest that you should speak to us. It will solve all your problems relating to the borrower as well as the guarantors. Some of the visitors desire to meet us in person, they may fix up appointment over phone. In rare cases, we can visit your place provided you bear our professional charges.

(d) The said counterclaim has to be based on the law of torts which alone offers full scope for claiming damages. The law of torts is fully applicable in our country. There are several Supreme Court rulings, some of which are given in this web site and if you need references please click here You will be transported to the page 'News and Views' where such references are given.

(e) We have developed special expertise in this area and our services are always available professionally. Even the senior advocates support our views  Mr. B.S. Malik, Senior Advocate, Supreme Court of India, a famous constitutional lawyer having experience of nearly 30 years, fully supports our approach vide the para 'Interactions with Mr. B.S. Malik, Senior Advocate, Supreme Court of India' in the page 'News and Views' of this web site. To visit this page just now, you may click here

(f) During the last 55 years of our democracy, had we paid proper and serious attention to the application of law of torts along with improving the management of the civil courts, the majority of government bureaucracy and the politicians would have not been so irresponsible, so unaccountable and so corrupt as at present and our nation and our society would have been somewhere else. Our inaction has made our next generation to suffer. At least we should wake up now and exercise our right of legal defence by way of counterclaim. 

(g) In USA, UK and other developed countries, the law of torts occupies topmost position, In USA, there is separate Bar Association of Tort Lawyers. In our country, all the advocates read this law only in their law classes in the college. The famous Indian book on law of torts is more than 100 years old. In modern society when we use modern goods, we will have to use modern law.

(h) The DRT / DRTs Act and the Securitisation Act will compel the troubled industrialists to utilize the effective tool of law of torts against the arrogant bankers who, in all cases, are openly violating the law contained in RBI Guidelines since 1976 as well as several provisions of law of torts . We have located such illegalities. We have legally determined the causal relations of such wrong doings and illegalities with the counterclaim. We know the process by which such claims would be proved.

(i) If we are afraid of bank bureaucracy on filing the counterclaim, the day will not be far when one sided decree will be passed, execution will be enforced, property will be sold out at throw away prices, and there will be no ground of defence in appeal. With  counterclaim filed at proper time, the legal battle in higher courts i.e. ADRT / ADRTs, High Court and Supreme Court will have strong grounds to win. Further with counterclaim, the borrower is in a better position to negotiate, if need so arises. If the banks are filing recovery suits on drop of a pin, the borrower has full authority to exercise his legal right to file counterclaim.

(j) The parties should not hesitate in putting the amount of counterclaim to the largest value because as per law, later on it can not be increased. The parties should not be afraid of bank bureaucracy. Since this is the only legal defence, all the DRT / DRTs litigants, sooner or later,  are going to setup their counterclaims. It is going to be a country wide movement. There is no option and no choice. You are not going to be alone. This has become particularly essential due to Securitisation Act.

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Why do the advocates appreciate your approach and why do they like your legal opinion and drafting of counter-claim by you?

After interactions with us the advocates appreciate our approach due to our vast knowledge of industry and law. Further the approach is based on mastery of facts and mastery of law and the same is applied from the first stage of litigation i.e. the pleadings. This has been lacking so far. This is not possible for most of the advocates as they are extremely busy and are not specialized. The advocates are advising the parties to seek our legal opinion and if needed to get the DRT / DRTs Reply including counter-claim drafted by us. Our clients have started winning the cases. In one of the DRT / DRTs cases, the bank which filed the recovery application in the court of law now has come forward for compromise. For details, please visit the page 'News & Views'. Another of our clients have filed a counter-claim of Rs. 1864 Crores in DRT / DRTs. Other two clients have got their counter-claims prepared by us for Rs. 2487 crores, Rs. 1100 crores, Rs. 446 crores and Rs. 211 crores. All these counter-claims are in the process of filing at DRT Jabalpur, DRT Mumbai and DRT Delhi. There are four seniour DRT / DRTs advocates who appreciate our approach. Our message is spreading throughout the country. The age of negotiated settlement is getting over as the liquid funds are not available with sick industries. The judicial process is also becoming efficient. Hence the borrowers and guarantors have no choice but to fight legal battle. If the battle is to have a winning strategy, it has to be based on sound fundamentals as evolved by us. Our approach is proving to be successful also. After the Securitisation Act, the bankers are acting with full force and speed. Further no sooner new 'National Law Tribunal' starts functioning, the cases will ultimately land at DRT / DRTs. Again the solution is by quickly adopting our approach. Since preparation of draft for the reply including counter-claim takes 3 to 4 months time, the prudent parties are getting their drafts prepared in advance. Now there is no option.  

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How can I seek your legal opinion ?

Please speak to me over phone. I shall answer all your initial queries and have a quick analysis of your case. If I find that something beneficial can be done, I shall ask you to send me copies of all the available documents along with my professional charges for the study. With my exhaustive legal opinion, you will be tremendously benefited and can make your strategy for further action. With our specialized knowledge, we shall devise ways and means to protect the interests of the borrowers and the guarantors. You should go through other questions and answers on this page as well as you can assess our work by clicking here DRT / DRTs Cases Recently Handled by Us so that you have the fair amount of idea as to how we are handling the various types of DRT / DRTs cases. In emergency you can also speak to us on phone nos. off.-cum-res. +91-731-3290201 or Mobile-930-2103689 (Reliance WLLM). Our study fee is quite nominal and with our legal opinion, you get tremendous benefits. 

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At present, my DRT / DRTs case is stayed, what should I do in the intervening period ?

The stay will definitely be lifted after certain period. With the application of the Securitisation Act, the temporary relief enjoyed by the BIFR parties will also go away. Hence the intervening period should not be wasted in idling. It is suggested that you should have continuous review of your case and preferably seek expert opinion from us. Please click here and go through the above question and answer viz. 'How can I seek your legal opinion ? In order to avoid last minute rush, you should get the counter-claim drafted by us in advance and keep it ready so that it can be filed immediately as soon as the stay is lifted. Drafting of the counter-claim requires 3 to 4 months time. On account of our expertise and specialization, you can not get the required quality elsewhere. Many of our clients got the counter-claims drafted from elsewhere and when they sought our opinion, they assigned us redrafting of the entire counter-claim. 

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What are your products and services ?

As per the Law of Torts nobody including a banker has any right to injure others intentionally or innocently. If you feel that you have been injured like this, we can study as to how the said law can be applied and make strategy for obtaining suitable compensation for the injury, loss and damages. At present, in most of the cases the public is getting injured by the wrongful acts of the bureaucracy in the Central Govt., State Govt. and their instrumentalities, agencies and other bodies like banks, financial institutions, electricity boards etc. We handle all such cases if substantial loss and damages are involved. In the arena of business and industry, many of the victims whose cases are in the DRT / DRTs (in short for Debt Recovery Tribunals) and suit filed accounts have approached us for suitable solutions, Many of the sufferers are the Borrowers as well as the Guarantors. Apart from tendering our expert legal opinions, we draft the suit, written statements, countersuits, counterclaims under the law of torts, law of contracts etc. for the injury, loss and damages. We are mostly confined to solicitor services. Our drafts, briefs and opinions are quite exhaustive for the average advocates to contest the cases easily in the court of law. If needed, in DRT / DRTs cases, we can appear before the tribunals/appellate tribunals and conduct arguments,. We examine and inspect the bank documents and locate numerous illegalities, inequities and contradictions. Our services are available online during the course of litigation any time any where. We are only a phone call away.

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Counter-claims prepared by you run in hundreds of crores. Do the DRT / DRTss have powers to decide such counter-claims and that too under the law of torts?

DRT / DRTs have unlimited powers for the claims filed by the banks and financial institutions. Hence they have unlimited powers for the counter-claims by the borrowers and guarantors. The rank of Presiding Officer is equivalent to a District Judge. The District Judge has unlimited powers for the suit amounts and hence the Presiding Officer of the DRT / DRTs have unlimited powers for the claims and counter-claims. As per the DRT Act, counter-claim can be set up for damages also. The Supreme Court has specifically laid down that claim and counter-claim are to be decided together by the DRT / DRTs. As regards the Law of Torts, it is a substantive law. There is no exclusion of this law in any court including that in DRT / DRTs. The famous case of Union Carbide awarding damages of Rs. 750 crores under the law of torts was decided by a District Judge in Bhopal. For the first time in the legal history of the country, in this case interim damages of Rs. 250 crores were awarded.

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Why are the counter-claims prepared by you so huge, running in hundreds of crores?

The counter-claims prepared by us and mentioned in this web site are to the tune of Rs. 2487 crores, Rs. 1864 crores, Rs. 1100 crores, Rs. 446 crores and Rs. 211 crores etc. All these pertain to the injuries caused to the industrial units and their promoters. The calculations are based on law of torts and law of damages. In the 'News & Views' of this web site, we have described a case in Kerala where the party in 1990 filed a damage of Rs. 300 crores against a public sector bank. On the same page we have also mentioned damage cases in USA where even the individual claimed damages to the tune of Rs. 14,000 crores. Considering all the relevant factors, our damage calculations are reasonable, fair and legally correct. 

As per the law of torts and the law of damages, there is no particular limit that can be awarded by a court of law including DRT / DRTs. The amount may rise to almost any sum of money. In India in 1922 a sum of Rs. 2,00,000 was awarded vide Jugal Kishore Marwari vs Babu Homeshwar Singh, A.I.R. (1922) Pat. 79. We calculate the counter-claim as per the law of damages, according to which the injured should get the sum of money which will put him in the same position as he would have been if he had not sustained wrong. For further details please visit the page 'Notes - Damages' of this web site. Our calculations are based on proven performance of the industry as reported in the balance sheets and annual reports. We also consider the business opportunity loss, injury to the property, loss to image and reputation etc. If the damages are caused deliberately, we add aggravated and exemplary damages also. Until and unless, we submit our full claim, the court of law including DRT / DRTs is not going to add from its side. If the violation of law and wrong doings on part of banker virtually kills an industry, it is a great impact on the society and huge loss and damages are caused. Such counter-claims alone will make the bankers responsible and accountable. With such approach only the errant bureaucracy in our country can be corrected. It is a compulsion particularly after the coercive legislation like the DRT Act 1993 and Securitisation Act 2002. The law of torts is the only tool and the counter-claim for damages is the only remedy for the injured citizens including borrowers and guarantors in a democratic set up like ours. Since the benchmarks set by our constitution are one of the highest in the world, the resultant counter-claims will also rise accordingly. Indian industry so far has been using only plain language to express their injury but we have shown its quantum in money value. Kindly visit the page 'DRT Cases Handled by Us' of this web site to have the details of typical counter-claims.      

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What about the court fee in respect of the counter-claims to be filed in DRT / DRTss?

The counter-claim is same as a counter-suit. The court fee charged on counter-suit is same as that for the suite. On the same reasoning  in DRT / DRTs, the scale of fee for counter-claim is same as that for the claims filed by the banks and financial institutions. The maximum court fee is Rs. 1.5 lacs.

Most of the cases pertain to sick industries which are already having balance sheets registering losses. Thus they have no sparable funds for court fee. Further their assets are already mortgaged and hence the same can not be disposed off for arranging court fee. In legal arena such company is called  “an Indigent Person“. There is full fledged legal procedure for filing of suits and exemption of court fee for such persons. The 'News and Views' page of this web site gives a Supreme Court judgment on waiving of court fee of an Indian Company which filed in 1990 a damage suit of Rs. 300 crores on a nationalized bank. To visit the said page of 'News and Views' just now, you may click here  Thus the parties who do not have sparable funds for the said court fee of Rs. 1.5 lacs, they can file their counter-claims  as 'Indigent Persons'.

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What are your views about the deposit of 75% for the appeal in ADRT / DRTs?

The appeal against the final order of DRT / DRTs requires maximum court fee of Rs. 30,000=00. Such appeal also requires a deposit of 75% of the amount of debt due as determined by the DRT / DRTs. The appellate DRT / DRTs may waive or reduce the said deposit. Our views are as under:-

(1) On account of such provision, it is all the more important to have proper pleadings at the very initial stage of DRT / DRTs trials so that it is proved that the borrowers do not have any sparable money for the said deposit. In our drafts we include such pleadings.

(2) Further on account of such provision, it is highly essential that the DRT / DRTs trial has to be exhaustive and complete in all respect. The borrowers must include their counter-claims if there is even a slight possibility of the same otherwise there will be no opportunity in future. The pleadings must contain all the facts for the proposed trial. With our expertize and specialization, all such precautions and safeguards are readily available.

(3) There is scope for questioning the constitutional validity of this provision. We have lot of material and the party desiring to do so may contact us. 

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Will Indian Courts and DRT / DRTss give decisions on the points raised by you ?

(a) This doubt prevails in the minds of the people because of wrong approach to litigation process. If we jump to High Court or Supreme Court in the very beginning, we are bound to fail. Even the consumer forum is not a proper jurisdiction for bank cases. The best place to start the legal battle is the trial court or DRT / DRTs.

(b) The Industrial or business loans involve complex and controversial facts about the working of the industry, business and banking. The important facts are known as material facts. The importance is to be judged in light of the law to be applied. In the context of industrial units being created, promoted, developed and to be maintained in pursuance of the directives and policies of the government operating through the RBI (Reserve Bank of India), the law of torts is the most appropriate law to be applied. The person who prepares the case on behalf of the borrowers and guarantors should be well versed in this law, then only he should examine all the available facts and then sieve out the material facts. Any deficiency or lapse in this recognition and sorting out of the material facts will certainly result into failure. Hence 90% of the battle will prove to be successful if drafting of the pleadings has been done by a person who has thorough grasp of business, industry, banking, legal process and law of torts. Such appropriate pleadings only should be filed in the courts or DRT / DRTss. It is needless to mention that we have exclusive expertise in this area. Rest of the court/DRT / DRTs process can be handled by any advocate as we provide exhaustive brief. If needed, we can also handle arguments in DRT / DRTsand ADRT / ADRTs.

(c) The most important aspect is the cross-examination of the bank officials. On account of our exhaustive draft any advocate can obtain the admissions of various material facts useful for the borrowers and guarantors. With such process, the role of the judge is left with nothing but to give decision in our favour as he has no discretion in respect of the facts admitted by the bank officials. With such legal process, the role of the high court and the supreme court becomes very much limited particularly in respect of the admitted facts.

(d) This winning strategy requires hard work and patience. It is needless to reiterate that the most important aspect is an appropriate drafting of counter-suit or counter-claim. Our approach is result of more than 13 years of practical work on the legal shop floor supported by thorough study of relevant legal material, numerous case laws and supreme court judgments, discussions with the legal experts, advocates, judges, writers of legal books, industrialists etc. Our 2 main articles and more than 70 mini-articles including those on Securitisation Ordinance and Act published in the Financial Express are the solid proof of our experience and knowledge. This is the reason as to why our work has been appreciated by our clients and legal authorities vide their comments, extract furnished in the page About Us-DRT / DRTs Solutions of this web site. We are always available for further clarifications. In case of any difficulty, please make a phone call to us. In respect of DRT / DRTs matters, we provide legal consultancy even on phone.

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How do I get your services particularly when you are situated at outstation at Indore?

We cater to various clients all over the country in respect of solicitor services on all DRT / DRTs matters. We are also available for arguments in DRT / DRTs and ADRT / ADRTs. Our clients first get in touch with us through phone. They, then, send us copies of the available documents, brief history of their case along with a prescribed study fee. After receipt of these, we study their documents in depth and prepare our opinion along with the strategy for future course of action. This is the stage at which, if the client desires, he can have detailed discussions. We have a well developed online computer system for rendering efficient services any time any where. Since we are highly focused on the Law of Torts as applied to business, industry, sick industries and relevant legal aspects, our products and services are qualitatively of highest possible standards. We provide exhaustive briefs i.e. case laws, analysis, strategy and online support so that any advocate of Indian Courts will find it easy to contest in the trial court, DRT / DRTs as well as higher courts. It is needless to mention that on account of expertise and specialization, we provide instant advice even on phone with up to date law on any issue related with DRT / DRTs, ADRT / ADRTs, Securitisation Ordinance, Bank documents etc. Our clients can have arrangements with us for retainership using phone or e-mail.

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Whether Can I prepare my counter-claim? and its pros and cons?

Few parties have enquired as to how can they prepare counter-claim themselves at their own end and if so what are its pros and cons? Preparing counter-claim is a highly skilled job requiring mastery of relevant facts and mastery of relevant laws. In case of DRT / DRTs counter-claims, one should have in-depth knowledge and experience of banking, industry and business, Banking laws, company laws, law of torts, law of damages, procedural laws, Constitution of India, DRT / DRTs laws, law of pleadings, law of evidence, law of contract, Bankers' Books Evidence Act, Securitisation Act, relevant court judgments etc. Normally such specialized knowledge and experience is not possible for the businessmen, industrialists and their advocates. If someone wishes to acquire the same, it needs intensive study for years together. Despite if someone endeavours to do so, the pleadings will be incomplete and inaccurate and such a step brings in serious weakness right from the first step. In fact the battle is lost before it begins. It would be a false saving and suicidal. The expenses involved in getting the counter-claim drafted by experts like us would be worth any cost just like a life saving drug. We have achieved the quality standards of drafting after continuous experience and knowledge past more than 13 years of exposure. Many of our clients with our drafts are now having upper hand over the banks and financial institutions. Despite all these even if you intend to draft the counter-claim yourselves, it would be like inventing the wheel and will prove to be highly injurious. Some of our clients and their advocates attempted to do so and when they had problems, they came running to us and we had to redraft the entire counter-claim as they made fundamental mistakes in choosing proper legal syntax, the categories of damages, calculation of damages as per law etc. (24.10.05)