DRT  Legal  Solutions

(Debts Recovery Tribunal Legal Solutions) is an India based

Law Firm specializing in DRT, Securitisation, Sarfaesi, IBC, NCLT, Borrowers and Guarantors Solutions in Debts Recovery Tribunals,

Pioneers in Counter-claims and Damage Suits based on Law of Torts and Law of Damages 

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DRT Solutions Weekly Mail – 300th Issue dated 7th February ’14

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) PO, DRT-1, Chennai dismisses the OA of Indian Bank consequent on Invocation of Securitization Act

 

Mr Ashok Surana (M-9445020956), M.D., Tetrahedron Ltd, Chennai has informed that in his case which he himself pleaded and argued, the PO, DRT-1, Chennai has dismissed the OA filed by the Indian Bank. Our comments are contained in a separate page on our web site vide link http://www.drtsolutions.com/OA-Dismissal-Chennai.htm extract reproduced below.

The said complete judgment of the DRT-1, Chennai is available on our web site vide link http://www.drtsolutions.com/OA-Dismissal-Chennai.pdf

The legal community particularly the litigant borrowers will appreciate the following:-

(a)           The borrower himself has pleaded and argued submitting all the legal aspects

(b)           The PO has noted that the Division Bench of Patna High Court has set aside such judgment of single judge and despite having an adverse verdict from a  division bench of High Court, the said PO, DRT-1 chose to disagree.

Tetrahedron Ltd vs Authorised Officer, Indian Bank  decided on 08.11.13 by PO, DRT-1, Chennai Mr Thiru P.K. Ramaswamy Iyer

DRT Solutions Citation –  DRTS-023-Tetrahedron vs Indian Bank-2013

We have now numbered the Judgments published on this web site as DRTS-00. Accordingly all the judgments published so far have been numbered. The judgment referred to in this page is numbered as DRTS-023.

The copy of the complete judgment is reproduced on this web site vide link:-

http://www.drtsolutions.com/OA-Dismissal-Chennai.pdf

Comments by DRT Solutions

Our contentions past 9 years regarding OA Dismissal (under certain conditions) has now again been proved by the judgment of DRT-1, Chennai. This judgment was sent to us by Mr. Ashok Surana (M-9445020956), Chennai, Party-in-Person, who himself pleaded and argued the case. The said judgment has been reproduced in full vide link given below:-

http://www.drtsolutions.com/OA-Dismissal-Chennai.pdf

The history of our journey past 9 years has been given below. There are several other contentions which we are fighting past 25 years  (e.g. counter-claim, perfect trial, etc) will also be proved with passage of time. We are not surprised because the Indian Judiciary is ranked 74th in the world i.e. there are 73 countries which are having better judiciary . As per Justice Krishna Iyer in 1988, we are 200 years behind. The challenge is to the Bar Counsel of India, Law Colleges, Advocates, Judges and the common men. The entire democracy depends on how soon Indian Judiciary is improved. The present Govt and Political Parties don't want as they prefer to continue the British System which was just to keep the public as their servants and loot the country whereas the Democracy aims at making the public as master and Public Officers as Servants. The public will have to fight for real freedom. The silver lining is that the persons like Swami Ramdevji, Anna Hazare, Kejriwal have spearheaded this fight. Technology is also helping e.g. 400 TV Channels, more than 80 crores mobiles, increasing use of Internet, growing Social Media etc. Anyway, the said history regarding OA Dismissal is as under:-

(a) - 15.12.06 - First application regarding OA Dismissal prepared by us for a client at Mumbai. Since then we have prepared such applications for several of our clients all over the country.

(b) - 05.05.08 - This item was discussed in the First All India DRT Conference held at Indore.

(c) - 26.12.08 - Our Weekly Mail 33rd Issue item no 1 which gives our detailed comments on this topic'

(d) - 19.12.08 - Our Weekly Mail 32nd Issue item no 6 which mentions that application for OA Dismissal prepared by us 2 years back was being contested by one of our clients.

(e) - 09.01.11 - This item was discussed in the Second All India DRT Conference held at Indore.

(f) - 05.12.11 - On this date we had introduced a special web page. We have been repeatedly emphasizing that as soon as the Securitisation Act is invoked and if there is OA pending or OA is initiated, the same should be dismissed. A comprehensive article (reproduced below) has been prepared by Mr. N.K. Sharma, ex-GM (Law) and our Associate. The concepts propounded in this Article have been used by us to prepare and contest relevant application for OA Dismissal. In such circumstances, we have been advising our clients accordingly.

(g) - 01.02.13 - Past 9 years, we have been proposing that just after invoking Securitisation Act, if the bank files OA, the same should be dismissed. Accordingly for our several clients, we have prepared such applications. The said applications were first opposed by their advocates. After filing, the same were opposed by the banks. The DRTs also could not decide the same. Now our such contentions were proved by the Patna High Court vide their judgment delivered on 27.08.12 in the matter of Purnea Cold Storage vs State Bank of India vide citation AIR 2013 Pat 1, also reproduced on this web site vide link:-http://www.drtsolutions.com/OA_Dismissal.htm

(h) - 31.07.13 – The above mentioned judgment of Patna was set aside by the Division Bench in its judgment dated 31.07.13.

(i) - 08.11.13 – The PO DRT-1, Chennai dismissed the OA in the matter of Tetrahedron Ltd vs Authorized Officer, Indian Bank. The entire judgment is reproduced on this web site vide link:-http://www.drtsolutions.com/OA-Dismissal-Chennai.pdf which is self explanatory. This judgment in its Para 19 clearly mentions about both the judgments of Patna High Court.

(j) - 06.02.14 – In view of above, our contentions past 9 years have again been proved.

----------------------------------------------------------------------------------------------------------------------------

(2) Rs 3000 crores loan but Security only 2.4% – Case of Zoom Developers

 

The following news item published at page 17 of the Economic Times, Indore/Bhopal edition dated 05.02.14 as to how huge loans amounting to Rs 3000 crores are sanctioned by top managements of the banks with meager security of only 2.4%. On one hand smaller loans are having multiple securities with margins along with personal guarantees and in this case for recovery of huge loan amount of Rs 3000 crores, the banks are having pitiable situation:-

Lenders may revaluation mortgaged assets of to Zoom Developers

By Atmadip Ray, ET Bureau | 5 Feb, 2014, 12.14PM IST

a.indiatimes.com/news/news-by-industry/banking/finance/banking/lenders-may-revaluation-mortgaged-assets-of-to-zoom-developers/articleshow/29893224.cms 

KOLKATA: Lenders to Mumbai-based Zoom Developers may go for a revaluation of the mortgaged assets that were put on the block since they failed to sell them to recover part of the Rs 3,000-crore outstanding loans. 

A consortium of 25 lenders, led by Punjab National BankBSE -1.88 % (PNB), had put seven assets of the project development and information technology company on sale thrice without any success. United Bank of IndiaBSE -0.70 % had issued a sale notice on behalf of the lenders, but there were no buyers. The last notice was issued on November 18, 2013, and the last date of receiving the tender was December 19. 

"It seems no one's willing to pay the reserve price," said a senior banker involved in the process. "We may need to engage a value afresh to do a valuation again and lower the reserve price of the assets on the block," he said requesting anonymity. 

Total reserve price for the seven properties was fixed at Rs 72.88 crore, which is just about 2.4% of the outstanding dues. It perhaps suggests that banks had lent to Zoom without physical security to cover the risk. 

A section of the lenders has suggested that a revision of the valuation of the properties will probably get buyers, but a final decision will be taken only at the next lenders' meet. Lenders are also free to sell the mortgaged properties in private deals but they need to obtain consent from the borrower if they fail to sell them at a price higher than the quoted reserve price as stipulated under the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest (SARFAESI) Act 2002

The government allows private treaties after one sale notice. Among the seven properties put up for sale, two are at Mumbai's Andheri area with a cumulative reserve price of Rs 33.2 crore and the other five are in Indore where the firm is registered. Bankers said they have managed to sell just one of its property for Rs 1.7 crore outside this list. 

UBI had taken symbolic possession of the mortgaged properties since Zoom's promoters Vijay Choudhary and BL Kejriwal and its guarantors failed to repay the loan. Total dues of the secured lenders are Rs 3,002 crore, plus interest and other expenses to be accrued since September 2011, until banks recover all their dues.

(3) Everybody should Read This - Sam Pitroda’s Convocation Address – Really Inspiring – A Ray of Hope

 

Mr Firoz Poonawalla has sent the   important piece:-

Pitroda’s Convocation Address 

http://www.theprasanthireporter.org/2013/12/sam-pitrodas-convocation-address/

Monday, December 2nd, 2013

Legendary Indian Bureaucrat, a man who is synonymous to success, Mr Sam Pitroda addressed the students of SSSIHL(Sri Sathya Sai Institute of Higher Learning, Bangalore), delivering the 32nd Annual Convocation Address speaking about the nation, nation building and the need for greater changes to have the India of our vision, in the next one decade…

Pl do read this speech of Sam Pitroda. He has a vision.

And no politics here.

 =======================================

This is a very stirring talk, brimming with hope and wisdom. I only knew of Sam Pitroda from the newspapers and now I realise that they have not done justice to the man- not by a long mile!. He is brilliant and what is more important, has his heart in the correct place. Atleast that is the impression one gets from this talk. I wish we had more such men  at the top to guide India into a brighter future. 

I suggest we give the widest possible exposure to this talk- especially among our youth. Over to you.

 Really inspiring. Ray of hope.

It is indeed a special privilege and honour for me to be here with you today to deliver 32nd convocation address. I want to thank the organizers for giving me this opportunity. I must say I have delivered probably over twenty five convocation addresses but I never had a setting like this. It is overpowering, inspirational, emotional, peaceful, pleasant and unbelievably quiet.

This is my first visit to this University. I have been reading and hearing about it on and off for many years. But one of my colleagues who works with me, Vikas Bagri who graduated from here with a degree in Business (MBA) in 2008 has been working with us for five years. He is an example of your ambassador-very sincere, honest, hardworking, courageous, committed, disciplined, creative, ethical, with an ability to analyze things and willing to do everything, like I see here.Everything you can ask for- you see in him and you all should be proud of the institution you have.

You have a great Institute with so many distinguished people. Before wearing this gown we all were together and I was amazed to meet some of these distinguished people whom I have known for many many years as part of my work in the eighties and I had no idea that they were all involved with this Institute. So you are indeed lucky to have the right spirit, right talent of advisors and seniors, proper environment, eco system and you are lucky to be graduating today.

My congratulations to all graduating students. I wish you the best of the best in your journey forward and I hope you make a substantial contribution not only to yourself, your family, your community but also the country and the world.

I can’t help but think of the day I graduated looking at all these beautiful young faces. I graduated from college with a BSc in Physics just about 52 years ago. It seems like yesterday. I was out there sitting, not with your kind of discipline, unfortunately. Young, just coming out of the Indian independence movement fervor – I was born in 1942. Mahatma Gandhi, Pandit Nehru, Sardar Patel and others were our role models. In those days, telephones were hardly available. In fact, I had never used a telephone in my life before going to America in 1964. I had never seen television in my life before going to America in 1964. Life was pretty simple. Needs were very little and goals were very clear.

I want to tell you a little bit about my journey. To give you an example of how we all take different turns in life and no matter how you plan, the journey turns out to be very different. Exciting, at times challenging, but everything you learn in colleges do add up to lot of good experiences.

I was born and raised in a small little village – a tribal village in Orissa. My parents were Gujaratis settled in Orissa and our heroes were again Gandhi, Nehru, Patel and others while growing up. In this village there were no schools, no water, no electricity, no phone, no doctor or no nurse. My mother delivered eight children – all eight at home – zero cost of delivery. All eight turned out to be mentally healthy, physically healthy and all eight went to America because at that time that was the way to get out of poverty.

My father had fourth grade education – he was a carpenter and his dream was to make sure, like every Indian parent, that his children do get good education. I must tell you nowhere else in the world do parents spend so much time, energy, money and resources to educate their children than in India.

So I got my BSc, then I got my Masters in Physics and then read in the newspaper that President Kennedy has decided to send man to the moon. I was young, energetic, little bit stupid, and I decided to go to America. I had no money, no support, didn’t know anybody. So I found some money, borrowed some, and then took a boat from Mumbai to Genova through Karachi, Aden, Port Said, Alexandria, Naples, Genova. Took a train from Genova to London, took a plane from London to New York and took a bus from New York to Chicago. I had never been there, had never seen snow, didn’t know what cold meant and all of a sudden realised that ignorance is going to help. I went to a college to study for a Ph.D. in Physics when my professor told me that it takes seven years to get a Ph.D.

My priorities changed and I did a Masters in Electrical Engineering because I could get that in one year. Then I spent many years calling my family one by one to America, putting them through college, working hard, built a business in 1974, sold the business in 1979 and then came to Delhi in 1980. I had never been to Delhi before. I tried to make a phone call to my wife and I tried and I tried and I couldn’t make a phone call.

So, with a fair amount of arrogance and lot of ignorance I said, ‘I am going to fix this.’ If I had known everything I know today about India, I would have never even tried it. I learned that ignorance is a great asset. If you know too much, sometimes you back off. I went back to Chicago told my wife that I am going to spend ten years fixing India’s telephones. I didn’t know how and I didn’t know with whom.

Finally I had a chance to meet Mrs. (Indira) Gandhi and that is when I met Rajiv Gandhi for the first time. I could convince Mrs. Gandhi and Rajiv Gandhi that telecom would change the face of this country.  I told them, “Information Technology will give us the resource we never had but it will take 10-15 years. We know we can do it, give us a chance to do it.” Mrs. Gandhi believed in technology.

Rajiv was just about my age and we made a good team. But I needed young people like you to get it done because without five hundred young engineers, I couldn’t have done anything. So it required the right kind of combination of political will, domain expertise and young talent. At that time, we had two million telephones. It used to take ten years to get telephone connection. Today we have nine hundred million telephones and we are a nation of a connected billion. This complex country with all its diversity is now connected for the first time in history. Anyone can pick up phone from any corner of the country and talk to anybody else. It is a very powerful fabric that we have created for the unity of this country. It is for development of this country in a very different way. It cuts across all barriers – religion, languages, physical location and customs. This powerful tool now is going to be an instrument to build a new India. Very few really understand the power of connectivity. The first phase of the telecom revolution is over but the second phase of the telecom revolution is about to begin.

Then I had a heart attack, I had a quadruple bypass and I ran out of money. I had worked for ten years and had spent all my money. When Rajiv Gandhi died, I lost my heart and went back to the US to pay for my children’s tuition. I went on a tourist visa as I had given up my US nationality, but I could not work there on a tourist visa. So I spent lot of time restructuring my life. My mother was there, my father had died there and no one in the family knew that I was completely broken in terms of the heart, had lost my friend. Because everyone assumed that I was powerful and had all that was needed. No one could deal with the fact that it was all gone. But you need an inner strength to build again. So I always tell my friends – my highs are very high and my lows are very low. My roller coaster ride is unbelievable.

I came back and worked on the National Knowledge Commission and then decided to focus on building public information infrastructure to really democratize information because I am convinced that the poverty today is the poverty of information. If we can empower our people with knowledge, education, information – they will figure out the rest on their own. Don’t under estimate the power of people in rural India. Don’t under estimate the knowledge of our young. We have not been able to give them tools. To an extent Gandhiji’s dream of Rama Rajya was not possible because we didn’t have the tools and the Internet.

India has taken long strides in development – the fact that we can feed 1.3 billion people today on our own is a great accomplishment by our agricultural scientists. We are a nuclear power, we have just sent a mission to Mars, we are the largest producer of milk in the world, we have eradicated polio, we don’t have guinea worm and millions and millions of our children can go to colleges and schools.

Internet and web has changed everything. It has changed business models, delivery systems, it is changing governance, education, health, agriculture and banking. Almost everything we do today is basically obsolete. Everything we do needs to be done differently keeping in mind Internet, keeping in mind new technology. So when the government introduced right to information, I believe that was the biggest decision in the history of India. Very few people understand the power of right to information. By introducing right to information we said – we are going to empower every human being in this country. It will take time. It will take probably ten or twenty years but the process is on. Whenever we introduce an instrument like that it takes time to settle. It creates confusion. People misuse, people abuse. We have right to information but we don’t have information organised in a manner that it can be used. So our job is to really organize information.

We are creating two major networks – one called knowledge network to connect all our Universities and R & D institutions, libraries and others, with 40 GB bandwidth to transfer large amounts of information so that our scientists can collaborate better, share resources and expedite research and development.

The second network is to connect 250,000 local panchayats through optical fiber. When that happens, all our villages would have huge amount of broadband capacity. These two networks will cost us about 50,000 crores. The first one is already built, the second one will be built in next eighteen months. In addition, we are creating platforms for ID (Aadhar) that Nandan Nilekani is working on; GIS (Geographic Information Systems) – Dr. Kasturirangan, Dr. Ramaswamy, Dr. Nayak are working on; Dr. Gairola in NeGP (National e-Governance Plan) where information on food distribution, driver’s license, passport, income tax – all would be organised. We are computerizing 32 million court cases because it takes fifteen years to get justice today. We need to organise and computerize the police, CBI and prisons.

I came back and worked on the National Knowledge Commission and then decided to focus on building public information infrastructure to really democratize information because I am convinced that the poverty today is the poverty of information. If we can empower our people with knowledge, education, information – they will figure out the rest on their own. Don’t under estimate the power of people in rural India. Don’t under estimate the knowledge of our young. We have not been able to give them tools. To an extent Gandhiji’s dream of Rama Rajya was not possible because we didn’t have the tools and the Internet.

India has taken long strides in development – the fact that we can feed 1.3 billion people today on our own is a great accomplishment by our agricultural scientists. We are a nuclear power, we have just sent a mission to Mars, we are the largest producer of milk in the world, we have eradicated polio, we don’t have guinea worm and millions and millions of our children can go to colleges and schools.

Internet and web has changed everything. It has changed business models, delivery systems, it is changing governance, education, health, agriculture and banking. Almost everything we do today is basically obsolete. Everything we do needs to be done differently keeping in mind Internet, keeping in mind new technology. So when the government introduced right to information, I believe that was the biggest decision in the history of India. Very few people understand the power of right to information. By introducing right to information we said – we are going to empower every human being in this country. It will take time. It will take probably ten or twenty years but the process is on. Whenever we introduce an instrument like that it takes time to settle. It creates confusion. People misuse, people abuse. We have right to information but we don’t have information organised in a manner that it can be used. So our job is to really organize information.

We are creating two major networks – one called knowledge network to connect all our Universities and R & D institutions, libraries and others, with 40 GB bandwidth to transfer large amounts of information so that our scientists can collaborate better, share resources and expedite research and development.

The second network is to connect 250,000 local panchayats through optical fiber. When that happens, all our villages would have huge amount of broadband capacity. These two networks will cost us about 50,000 crores. The first one is already built, the second one will be built in next eighteen months. In addition, we are creating platforms for ID (Aadhar) that Nandan Nilekani is working on; GIS (Geographic Information Systems) – Dr. Kasturirangan, Dr. Ramaswamy, Dr. Nayak are working on; Dr. Gairola in NeGP (National e-Governance Plan) where information on food distribution, driver’s license, passport, income tax – all would be organised. We are computerizing 32 million court cases because it takes fifteen years to get justice today. We need to organise and computerize the police, CBI and prisons.

I get upset when people don’t welcome change. Everyone in India tells you why it can’t be done. Everyone takes great pride in identifying a problem. You don’t need talent to identify a problem nor do you need talent to suggest solutions. You really need courage and talent to go and get it done against all the odds. Dr. Kurien when he started work on milk didn’t wait for anybody. He just went and did it. It took him forty years. All of these things that focus on nation building require long commitment. Nothing happens in less than twenty years.

Building a nation is very complex, very different. It requires different kinds of parameters, a different mindset. Building a company is easy. Productivity, efficiency, cost reductions, rules and regulations and so on and you can do it.

Our collective task is very complex. When I say our task, I mean you all need to build a very strong, secular, united nation which gives direction not only to India but to the world. The world is looking and the world is interested in India’s development. How do we get everybody to rally? If we can’t put our own house in order how do we get everybody to rally? When you look at the media, you feel that everything is falling apart. Morals are going down, work ethics are going bad, and everybody is stealing everything. The rich are becoming richer and the poor are not being paid attention to and it is chaos, confusion and contradictions.

I get upset when people don’t welcome change. Everyone in India tells you why it can’t be done. Everyone takes great pride in identifying a problem. You don’t need talent to identify a problem nor do you need talent to suggest solutions. You really need courage and talent to go and get it done against all the odds. Dr. Kurien when he started work on milk didn’t wait for anybody. He just went and did it. It took him forty years. All of these things that focus on nation building require long commitment. Nothing happens in less than twenty years.

Building a nation is very complex, very different. It requires different kinds of parameters, a different mindset. Building a company is easy. Productivity, efficiency, cost reductions, rules and regulations and so on and you can do it.

Our collective task is very complex. When I say our task, I mean you all need to build a very strong, secular, united nation which gives direction not only to India but to the world. The world is looking and the world is interested in India’s development. How do we get everybody to rally? If we can’t put our own house in order how do we get everybody to rally? When you look at the media, you feel that everything is falling apart. Morals are going down, work ethics are going bad, and everybody is stealing everything. The rich are becoming richer and the poor are not being paid attention to and it is chaos, confusion and contradictions.

(4) Weekly Mail 300th Issue – Your Suggestions and not Appreciations are required

We have received several mails on this occasion of 300th weekly mail. We thank all of them. Most of these mails appreciate our work. There are very few mails which give suggestions.

We now embark upon a new journey with renewed vigor and spirit to render better service to our readers. The next goal is to reach 400th Weekly Mail with the same uninterrupted flow of valuable and useful analysis, commentary and knowledge.

(5) Your Face & Your Health

The following piece from speakingtree.com is quite useful:-

What your face says about your health

http://www.speakingtree.in/spiritual-blogs/seekers/self-improvement/what-your-face-says-about-your-health/?utm_source=topic_newsletter&utm_medium=subscription&utm_campaign=topicnewsletter&suid=MTgxMTMz

By: Meghraj Khedkar on Jan 16, 2014 

An individual’s face not only gives non-verbal signals about someone’s true well-being from unconscious facial expressions, but the state of their skin reveals a great deal about what’s going on inside, both physically and emotionally.

In fact, practitioners of traditional Chinese medicine have used facial analysis as a diagnostic tool for centuries, marrying specific facial areas and features with organs and emotional states.

So when you get a recurring zit on the same part of your chin or have a perpetually congested or flaky forehead, your skin could be trying to tell you that there’s a deeper health concern in need of attention.

Facial diagnosis is not an absolute science, but it could certainly point you in the direction of a healthier lifestyle, Fox News reported.

Mid-Cheeks are linked to the respiratory system, so a slight rash could be an indication that your bodyis starved of oxygen and you need to work on deepening your breath.

The area is also a stomping ground for rosacea, so be sure to seek topical treatment if you have persistent redness that flares up easily. It’s quite possible that too many stimulants like coffee and alcohol could be causing all that flushing.

The mouth correlates to the stomach. Where the actual lips relate to the stomach and intestine, the surrounding area at the sides that run down toward the jowls are linked to the colon. Any spots or discoloration dotted around your lips could, therefore, be a sign of poor bowel movements, bloating or a poor appetite.

Bloody gums indicate an acidic stomach, while dry and flaky lips are a fairly obvious sign of dehydration. Cracks or sores, alternatively, suggest a spleen in need of care.

The kidneys and bladder show up on the chin. Any kind of hormonal imbalance will usually show up here, as guys who were plagued by acne as a teen will know only too well.

If, as an adult, you’ve got congestion around the chin, then there’s a good chance your kidneys are working overtime and you’ve put yourself under an unhealthy amount of stress.

The comparatively large expanse of the forehead accounts for several organs, including the heart, the small intestine network and the bladder. If you’ve been partying hard, all that wear and tear will end up written on your forehead.

Congestion signals poor detoxification, while a red and flaky complexion could indicate a digestive tract in need of a bit of lubrication. If you’ve got both, then your digestive system is crying out for help – a call you’ve probably felt elsewhere.

The liver lies between the eyebrows. Unsurprisingly, too much alcohol or excessive consumption of other toxins are going to show up around here.

Since the liver is inextricably linked with anger in traditional Chinese medicine, a furrowed brow is a good sign you might need to work through some anger issues.

According to the TCM experts at ESPA Life, a stronger right brow can be found on patients who are more likely to express anger outwardly. Those with a stronger left side, however, will have a tendency to suppress their anger.

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DRT Solutions Weekly Mail – 299th Issue dated 31st January ’14

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) DRAT Mumbai on 13.01.14 orders Restoration of Possession of Industrial Unit of which Possession was taken on 25.08.07.

One of our clients from Mumbai informed that DRAT Mumbai vide Appeal No 135/2011 in the matter of Coventry Springs vs Assets Reconstruction Company has held on 13.01.14 that SA is allowed with costs and accordingly the impugned judgment and order dtd 03.06.11 passed by the DRT in SA No 71/2007 is set aside and the SA is allowed. The measures taken by the Authorized Officer in taking over the possession are quashed. The impugned sale of the secured assets is also quashed. The purchasers of the said assets are directed to restore the possession of the secured assets to the appellant within 30 days.

Our Comments

(a)   In this particular case, the secured industrial assets situated at Howrah and Nagpur were taken over by the bank on 25.08.07 and sold to different parties.

(b)   The SA filed in DRT was disallowed on 03.06.11.

(c)   The DRAT however allowed the appeal.

(d)   There have been several wrong doings and violations by the bank which were brought before the DRT and DRAT. On one hand, the DRT dismissed the SA, the DRAT allowed the same. We are studying both the orders with a view to analyze the approach of both the tribunals.

(e)   The possession of secured assets was taken over on 25.08.07 and sold to different parties in October 2007. The said buyers even obtained further loans from the bank and carried out operations during the period of nearly six years. Now the said assets are ordered to restored to the original owner i.e. the borrower. We have advised the said borrower to file case for compensation for loss and damages for the said period of six years during which the assets were in possession with the buyers.

(f)    Interestingly the counter-claim filed by the borrower before the assets were taken over is still under adjudication with the DRT.  

(g)   As a whole this case shows that fight does not end with DRT, one may have to fight even upto Supreme Court with mighty banks under judicial uncertainty. This demands adequate resources in time, knowledge and money. Accordingly we have been advising our clients right from the inception through our web site, weekly mails and personal interactions.

(2) Forthcoming Weekly Mail 300th Issue – Your Suggestions and not Appreciations are required

The following item given in our last mail is reproduced below. Though we have received quite good response, but the same are mainly appreciations which we may not publish. We need your views and suggestions so that we may improve ourselves further:- 

“On 7th February 2014, we shall publish 300th Issue of our weekly mail. It has been a long journey which started from 17.05.08 i.e. more than 5 and half years back. Not a single mail was missed on any Friday during this period whether I was travelling or staying out of Indore. At times there were technical problems in computer or internet, some how or the other, I could maintain the regular publication even I had to travel to nearby city for the same.

The general content of our weekly mails are based on three main categories:-

(i)            Topics dealing with defence of Borrowers and Guarantors – main approach has been to present solutions for present practical problems in DRTs and courts. Such content will not be found elsewhere as it is based on day to day interactions with our clients who are spread over all the DRTs in the country.

(ii)           State of Courts or Judiciary – the present problems and solutions with a view to upgrade the technology or better management with emphasis on giving better service to the users i.e. the litigants.

(iii)         Health matters – How to live a healthy and happy life with emphasis on longevity. Most of the topics are my own selection which I follow in my own life.

Will you please give your feedback as to how you feel about these weekly mails? What benefits could you draw out of them? Any suggestions by which we may improve the same further. We shall try our best during the next 100 issues.”

 

(3) Expanding Waistlines may contribute to Cancer 

 

The following item from speakingtree.com is useful and self explanatory:-

How expending waistlines may contribute to cancer growth

By: Meghraj Khedkar on Jan 28, 2014 

http://www.speakingtree.in/spiritual-blogs/seekers/self-improvement/how-expanding-waistlines-may-contribute-to-cancer-growth/?utm_source=topic_newsletter&utm_medium=subscription&utm_campaign=topicnewsletter&suid=MTgxMTMz

Investigators at The University of Texas Health Science Center at Houston (UTHealth) have found a new link between cancer and obesity.

Their preclinical research findings have suggested that fat progenitor cells may contribute to cancer growth by fortifying the vessels that provide needed blood to tumours.

Studies of groups of people have demonstrated a link between obesity and certain cancers; however, the physiological causes have not been identified.

The world Health Organization reports that in 2008 there were more than 1.4 billion obese adults in the world and that cancer claimed the lives of 7.6 million that year.

Some researchers have theorized that what obese people eat may affect cancer progression. However, although diet is an important factor, the direct effect of excess fat tissue on tumours has to be taken into consideration, said Mikhail Kolonin, Ph.D., senior author and associate professor at the Center for Stem Cell and Regenerative Medicine at the Brown Foundation Institute of Molecular Medicine for the Prevention of Human Diseases at UTHealth.

The UTHealth scientists found a new link between tumor growth and obesity. They report that tumours emit a signal that attracts progenitor cells from white adipose tissue in mouse models of cancer. These cells in turn support the network of blood vessels that nourish tumours – a process called tumour angiogenesis.

“For the first time, we have demonstrated that excess fat is a key factor in cancer progression regardless of the diet contributing to the extra weight,” Kolonin said.

“In an attempt to understand how fat tissue fuels tumour growth, our laboratory has focused on a possible role of adipose stromal progenitor cells. These cells serve as stem cells in fat tissue. We have discovered that they expand in obesity and are mobilized into the systemic circulation,” Kolonin said.

“Our experiments show that fat progenitors are recruited by tumours, where they incorporate into blood vessels and become fat cells,” said Yan Zhang, M.D., Ph.D., the study’s lead author and research scientist at the UTHealth Medical School.

“We found that obese animal fat progenitor cells recruited by tumours improved vascular function and, therefore, increased survival and proliferation of cancer cells,” Zhang explained.

Chieh Tseng, study author and graduate research assistant at the The University of Texas Graduate School of Biomedical Sciences at Houston, said, “Our work has the potential to help a lot of people. Currently, we are investigating the molecular mechanisms of fat progenitor cell homing to tumour. We are also screening for new molecules targeting the pathways through which cells traffic from fat tissue to promote tumour growth.”

“The next step in this research would be to inactivate fat progenitor cells in an effort to slow cancer progression,” said Kolonin, who is on the faculty of the graduate school and is the holder of the Jerold B. Katz Distinguished Professorship in Stem Cell Research at UTHealth.

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DRT Solutions Weekly Mail – 298th Issue dated 24th January ’14

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) During Adjudication of SA, issue of 2nd Notice u/s 13(2) is Objectionable and Illegal

One of our clients informed that during pendency of the SA, the bank has issued another notice u/s 13(2). We told them that such notice is illegal and the client was advised to put up the matter before the High Court. We advised them that it will be better to approach the DRT.

It is needless to mention that the High Court should be approached only in highly exceptional cases where there is pure legal issue and there are no facts to be decided by the Trial Court. Further it should be kept in view that if there is slight chance of not getting favourable decision in the High Court, it needs thorough examination whether it would be financially feasible to appeal to the Supreme Court. Instead, approaching the trial court i.e. DRT will have another advantage of appeal route through DRAT and the deliberations in DRT and DRAT will help the High Court to arrive at a better decision.  

Considering all the factors, our client approached DRT with an application for amendment of pleadings to incorporate the material fact relating to the issue of the second notice. We received an e-mail from the client which is self explanatory and is reproduced below:-

“The Case had been listed on 17/01/2014 before the Hon’ble Debts Recovery Tribunal ------ wherein application for amendment of S. A. had been filed bearing I. A. No. ----- on the ground that issuance of afresh demand notice during pendency of S. A. amounts to admission that first demand notice is illegal and second demand notice is non-est in law as it is issued without seeking leave of the Hon’ble Debts Recovery Tribunal. On motion hearing of the said I. A. No.  ----- , the Hon’ble Debts Recovery Tribunal has expressed oral anguish over the conduct of the bank and passed order thereby directing Assistant General Manager and also the Authorized Officer of the ----   Bank --- to personally remain present before the Court on next date i.e. 20/01/2014.

On 20/01/2014, the bank moved adjournment application on the ground that Assistant General Manager is on leave till 29/01/2014 and also that the legal opinion is given by the counsel to withdraw second demand notice but in-absence of concerned officer, no effective steps could be taken. On your behalf, I have given no objection for short adjournment looking to difficulty of responsible officer of the bank and accordingly, the Hon’ble Debts Recovery Tribunal posted matter on 31/01/2014for appearance of Assistant General Manager and also Authorized Officer to explain why second demand notice without seeking permission from the Court is issued.

Please take note of aforesaid events.

(2) New Roster System in High Court, Indore Bench – Aim & Objective of Judicial System

Recently new Roster System has been introduced in High Court, Indore Bench. It has caused lot problems to the advocates, the Judges and the litigants. The local Bar Association of High Court resorted to two days strike. Our comments are as under:-

(a)           On account of huge pendency in courts i.e. 3 crores to 6 crores cases as well as increasing rate of incoming cases are forcing the Judicial System to augment disposal but all the measures have been temporary and cosmetic.

(b)           To find correct solution one has to start with the fundamentals. There are 76 countries whose judicial systems are better than ours. We are closing our eyes to learn from them. There is no seriousness or urge to improve.

(c)           Famous Justice V.R. Krishna Iyer ( recently completed 100 years of age) has said that we are 200 years behind developed countries.

(d)           The Law Commission of India has done lot of work but we are not interested to implement their recommendations.

(e)           Hence only changing the Roster System, overloading the Judges and random allotment will only create mess and further indirect pendency by way of reviews and appeals due to hurried and incomplete justice.

(f)            We are closely watching the developments and making practical suggestions in our major field of operations i.e. defence of borrowers and guarantors.

(3) Forthcoming Weekly Mail 300th Issue

The following item given in our last mail is reproduced below. Though we have received quite good response, still your views and suggestions are required so that we may improve ourselves further:- 

“On 7th February 2014, we shall publish 300th Issue of our weekly mail. It has been a long journey which started from 17.05.08 i.e. more than 5 and half years back. Not a single mail was missed on any Friday during this period whether I was travelling or staying out of Indore. At times there were technical problems in computer or internet, some how or the other, I could maintain the regular publication even I had to travel to nearby city for the same.

The general content of our weekly mails are based on three main categories:-

(i)            Topics dealing with defence of Borrowers and Guarantors – main approach has been to present solutions for present practical problems in DRTs and courts. Such content will not be found elsewhere as it is based on day to day interactions with our clients who are spread over all the DRTs in the country.

(ii)           State of Courts or Judiciary – the present problems and solutions with a view to upgrade the technology or better management with emphasis on giving better service to the users i.e. the litigants.

(iii)         Health matters – How to live a healthy and happy life with emphasis on longevity. Most of the topics are my own selection which I follow in my own life.

Will you please give your feedback as to how you feel about these weekly mails? What benefits could you draw out of them? Any suggestions by which we may improve the same further. We shall try our best during the next 100 issues.”

 

(4) Enjoy Inexhaustible Source of Energy Every Moment of Time

 

The following article from speakingtree.com is useful and is self explanatory:-

Enjoy inexhaustible source of energy every moment of life!

By: Arvind Upadhyay on Jan 18, 2014 

http://www.speakingtree.in/spiritual-blogs/seekers/wellness/enjoy-inexhaustible-source-of-energy-every-moment-of-life/?utm_source=topic_newsletter&utm_medium=subscription&utm_campaign=topicnewsletter&suid=MTgxMTMz

Tiredness has become an epidemic. Most people feel exhausted every few hours. And thus the billion-dollar industry of stimulants runs to give us the fuel we feel deprived of. Be it tea, coffee, Red-bull, sports drinks, etc etc, they all are required not for taste or health, but to keep us charged.

Just think about the fact that tea or coffee is hardly a century or two old for most parts of the world. Humans had a much tougher life before that and yet never felt need of these stimulants. Please understand that these addictions are merely marketing gimmicks. The commercial mafia thrives and grows only if we are dumb, sick and addicted to them. The marketing frauds will want us to believe in all the rubbish that they produce and would use every moment of our attention to hoodwink us – TV, Newspaper, ads, billboards, music, radio etc etc.

However, here are some excellent tips for you to stay charged throughout the day without taking recourse to these stimulants which only make to addicted and race you faster to old age. They include both do’s and don’ts. Try them at least for 2 weeks and see the change. Use whatever tips you feel is feasible for you right now and share your feedback with us all.

If you find these effective, share the good word around and help others get rid of marketing trap as well.

Some of these tips may sound too simple or insignificant But proof of taste is in its eating. Test out yourself.

Water

  1. Drink lots and lots of plain water (unless you have a medical condition that prohibits you from it). Make sure water is not chilled and near body temperature. Drink at least 2 liters of water in the day. Avoid water for an hour before and after meals.

  2. Do not drink water during meals. If you feel dry in throat, you can sip in not more than a quarter glass of water in total.

  3. Drink one liter of water the first thing in morning. This is separate from the 2 liters you should drink during the day. Drink it before doing for toilet. Resist the urge till you are done with a liter of water.For better results, you can make water slightly lukewarm. Add a pinch of lemon or honey if it suits you.

  4. Do not drink lots of water in the last hour of your going to bed.

TV

  1. Just stop watching the idiot box. Its not only idiot but dangerous as well. The less TV you watch more energetic and smarter you would feel. Optimize accordingly.

  2. Make a rule not to watch TV for at least 2 hours before sleep and 4 hour after waking up. This is worst-case scenario. More you watch TV nearer to your time to bed, closer you approach your agedness. Go to sleep while watching TV only if you hate yourself!

  3. Even if you have to watch TV, avoid shifting channels. The flicker dumbs mind and increases tiredness.

  4. Ensure you take frequent breaks from gazing the screen. Do not be glued to the screen.

Sleep

  1. Take sufficient sleep

  2. Do not change sleep timings frequently.

  3. Do not sleep under high-speed fan. Lower the fan speed

  4. Avoid sleeping in chilled environment. Fresh air is best. But in case you need to sleep in air-conditioner, set the temperature not below 27-28 degree Celsius.

  5. Meditate for 10 minutes before sleep. First sit in lotus position and take few deep breaths. Then give yourself positive vibes. Make positive resolutions. Thank God and meditate for a while. We shall discuss the art of meditation in a subsequent post. Then go to sleep.

  6. Do not sleep straight on back or stomach. Always sleep on one side.

  7. Do not fold your legs tightly while sleeping. Keep body relaxed and straight.

  8. Avoid sleeping in the daytime. If you are drowsy or tired, a 20-minute nap after an hour of lunch is sufficient.

  9. Make a habit of thanking God for another opportunity to make good efforts, the first thing when you wake up.

Food

  1. Say no to spicy, oily, rotten, dirty food.

  2. Avoid meat and egg. They are not food for those who seek bliss in life.

  3. Do not drink cold drinks, packaged drinks, packaged food, bakery products, chocolates and any artificial food, unless its for prevention of death.

  4. Eat non-spicy, simple, natural nutritious food.

  5. Make habit of taking few grams of trifala powder daily once with water, either in night or morning

  6. Eat sprouts every morning in breakfast

  7. Try sucking a piece of ‘Baal Harad’ (Small Harad) after food. It is a great digestive and reverses ageing process

  8. Say no to tea, coffee, tobacco, alcohol, narcotics etc. Your body simply does not need it. In few days, you will realize how much more energetic you actually deserve to be, when you replace these unnecessary stuff with tips listed here and in subsequent postings.

Food is a deep subject. Would write more on it in subsequent posts.

Miscellaneous

  1. There is no parallel to Brahmacharya. Put simply, it means avoiding even the thought of lust or sex in any form –subtle or coarse. For the western society, it may seem that this would rob away all happiness from life.The truth is completely opposite. Only when you stop feeding yourself with junk, can nectar be served to you. The mere practice of trying to control the mind from various attacks of sensuality is an energizing process. There is a saying that its easy to show valour in one-off war. But one who controls his senses for 24 hours, 365 days relentlessly is the true warrior.

Practice Brahmacharya and get following benefits:

-       inexhaustible source of energy

-       warrior like attitude

-       long disease free life

-       sense of purpose and direction

-       ultimate happiness and bliss

Each of these claims can be tested within merely a month of disciplined practice in this direction. The marketing fraudsters may try to tell you that sex and wine is good. They are not wrong. Its good for them if you are dumb and diseased!

  1. Keep your spine straight throughout. A stooping posture makes you lose energy

  2. Do exercise regularly. There are various forms of exercise, and you can choose, mix and match most. We will discuss it in further details in subsequent articles.

  3. Avoid use of mobile phones, earphones and ipods to extent possible. They are worst drainers of energy these days.

  4. Avoid listening to noisy music. Spend time listening to music within. More on this later.

  5. Dream big, plan big and put big efforts. Seek knowledge of life, its purpose, mission, desperately. Nothing is more energizing.

  6. Smile a lot

  7. Understand that death is not the end. It’s the beginning. This life is an opportunity to prepare for that beginning.

Do provide feedback after you test these out. Will keep writing more on these aspects in subsequent posts.

Enjoy inexhaustible source of energy every moment of life!

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DRT Solutions Weekly Mail – 297th Issue dated 17th January ’14

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) Forthcoming Weekly Mail 300th Issue

 

On 7th February 2014, we shall publish 300th Issue of our weekly mail. It has been a long journey which started from 17.05.08 i.e. more than 5 and half years back. Not a single mail was missed on any Friday during this period whether I was travelling or staying out of Indore. At times there were technical problems in computer or internet, some how or the other, I could maintain the regular publication even I had to travel to nearby city for the same.

The general content of our weekly mails are based on three main categories:-

(i)            Topics dealing with defence of Borrowers and Guarantors – main approach has been to present solutions for present practical problems in DRTs and courts. Such content will not be found elsewhere as it is based on day to day interactions with our clients who are spread over all the DRTs in the country.

(ii)           State of Courts or Judiciary – the present problems and solutions with a view to upgrade the technology or better management with emphasis on giving better service to the users i.e. the litigants.

(iii)         Health matters – How to live a healthy and happy life with emphasis on longevity. Most of the topics are my own selection which I follow in my own life.

Will you please give your feedback as to how you feel about these weekly mails? What benefits could you draw out of them? Any suggestions by which we may improve the same further. We shall try our best during the next 100 issues.

 

(2) Amendment of Pleadings

 

Recently we have come across few cases of our clients which virtually were ‘Gone Cases’ when the client approached us. We suggested them to amend the pleadings to incorporate the deficiencies including the loss or damages or counter-claim. We prepared the same and in some cases the advocates did not agree but the client went ahead. With the incorporation of the amended pleadings, the said ‘Gone Case’ got a new life. In one of the cases, the DRT ordered return of the assets to the borrower. We have advised the borrower to file additional claim for compensation for the loss and damages suffered for the period during which the property ahs been in possession with the bank. In another case the bank is after the borrower to settle the case as early as possible.

Amendment can be carried out at any stage if it is in the interest of justice, equity and good conscience. There are numerous supporting judgments of Supreme Court of India. The biggest benefits will accrue to those who incorporate the claim for loss and damages or counter-claim resulting into ‘No Debt Due’ about which we have dealt with in several weekly mails.

 

(3) Plain Language for Lawyers

 

With development of human society, the approach is towards greater use of such language which is easily understood by the litigants avoiding use of legal technical words or phrases. It is needless to mention that the goal and objective for existence of courts or profession of advocacy is to give better service to the customers i.e. the litigants.

In view of above a new movement has started all over the world to simplify the legal language in courts or in the legal documents so that it is easily understood by common man. We should avoid burdening or impressing the client with complex legal terminology as it will be against ‘Customer Service’

The above is nicely illustrated in a book titled “Plain Language for Lawyers” by Michele M Asprey, 2nd Edition, originally published by ‘The Federation Press, Australia’, 1st Indian Reprint by Universal Law Publishing Co Pvt Ltd vide web site www.unilawbooks.com   

(4) Arthritis is the Specialty of Ayurved

 

The following article published in speakingtree.com is self explanatory:-

Arthritis is the specialty of Ayurveda

By: Meghraj Khedkar on Jan 15, 2014

http://www.speakingtree.in/spiritual-blogs/seekers/self-improvement/arthritis-is-the-specialty-of-ayurveda/?utm_source=topic_newsletter&utm_medium=subscription&utm_campaign=topicnewsletter&suid=MTgxMTMz

 

Arthritis is the specialty of Ayurveda. pain can be the largest impediment to a fuller life, the wear and tear of sedentary lifestyles, long working hours, wrong postures and age results in incapacitating arthritic pain and recurring lower back pain degenerates muscular health in our body. Customized treatments from our expert physicians tackles old injuries, heals chronic pains, strengthens muscles and eases aches and pains making the body supple.

When toxins accumulate in the body, they circulate to build up in the joints inhibiting proper joint function, mobility and comfort; the end result is arthritis, pain, loss of free movement etc.

Impurities can develop faster than the body can eliminate them; cleansing alone is not enough for relief from arthritis. The key to preventing toxic build up is to create healthier cells, ones that can effectively eliminate toxins. rVita arthritis and pain management program improves digestion and metabolism, forming pure, easily assimilated nutrient plasma which lubricates and nourishes joint tissue, releasing toxins and impurities for elimination from the body.

In Ayurveda, Vata is the organizing principle for the nervous system. Vata aggravation increases pain and sensitivity. Therefore, balancing and stabilizing Vata is an important part of rVita arthritis treatment program which includes cleansing the channels of circulation, strengthening digestion, lubricating the joints, balancing nervous system function, relaxing the muscular system and improving the naturalhealing habit of the body.

Arthritis treatment is a well planned health pack using all the possibilities of Ayurveda & Yoga to treat various spine and joint problems like spondlitis, slip disc, sciatica, osteo-arthritis, rheaumatoid arthritis, scoliosis, spots injury, etc. the therapies like Pathrapotalaswedam, Choornawsedam, Pizhichil, Kadeevasthy, Greevavasthy, Pichu and

Lepam included in package are directed towards relieving the inflammatory changes, releasing the spam in the affected area, strengthening the supportive tissues holding the spine/joints and nourishing the joints by improving the circulation.

Abhyangam: A Complete body oil application which choice of medicated oils suited for your constitution is recommended for Muscle-Skeleton health, helps tone muscles & removes fatigue, making your body agile.

Abhyangam with Navarakizhi: Tapping blouses of special, medicated rice, known as ‘Navara’, all over the body after dipping it in hot milk or herbal decoction, this nourishing fomentation therapy helps improve blood circulation, prevents degeneration of muscles and bones, strengthens muscles and alleviates muscular fatigue.

Abhyangam with Pichu: Cotton pad soaked in medicated oil is placed on a specific affected body part, kept moist with warm oil for a specified duration of time, reduces inflammation, pain and cramps.

Abhyangam with pizhichil: Involves continuous pouring of warm medicated oil on the specific part alone. Effective in skeletal and muscular diseases, cervical spondylitis, osteoarthritis, lumbago, sciatica and neuropathy

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DRT Solutions Weekly Mail – 296th Issue dated 10th January ’14

All Weekly mails right from 1st Issue to latest, click links on top of this page

(1) Allahabad HC also Stays Proceedings of SARFAESI Act in respect of Co-operative Banks 

Mr Vinod Kumar Agarwal vide his e-mail dated 09.01.14 has communicated the following judgment which  is self explanatory:-

Allahabad HC Judgement stays proceedings of sarfaesi act 23.09.2013

http://elegalix.allahabadhighcourt.in/elegalix/WebShowJudgment.do

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH 

Court No. - 24 
Case :- MISC. BENCH No. - 8486 of 2013 
Petitioner :- Ravi Pratap Singh 
Respondent :- State Of U.P.Thr.Secy.Cooperative Societies,Lucknow & Others 
Counsel for Petitioner :- Santosh Mishra 
Counsel for Respondent :- C.S.C.,Sanjay Kumar Srivastava 

Hon'ble Rajiv Sharma,J. 
Hon'ble Dr. Satish Chandra,J. 
Application for impleadment and application for amendment of the writ petition filed today are admitted to record. 
Counsel for the respondents submits that he has no objection in case both the above applications be allowed. 
Accordingly, both the applications are allowed. Let necessary impleadment and amendment be carried out in the memo of the writ petition during the course of the day. 
Learned Counsel for the petitioner submits that the National Urban Co-operative Bank Ltd., Pratapgarh is under the control of a Co-operative Society registered under the provisions of U.P. Co-operative Societies Act, 1965 and Rules framed thereunder and being a bank is governed by the directions and guidelines issued from time to time by the Reserve Bank of India.
 The petitioner is engaged in the business of tyres in the name of M/s Vikram Tyres. For promoting his business, the petitioner applied to the aforesaid bank for sanction of Cash Credit Limit. Initially in the year 1998, the CC Limit was sanctioned upto Rs.3.5 lacs, which was enhanced from time to time as per terms and conditions of the Bank. It appears that the petitioner defaulted in repayment of advance and failed to pay the amount inspite of notice, therefore,proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Intrerest Act, 2002 [in short referred to as the "Securitization Act"] were initiated against the petitioner.�� In the instant writ petition, the petitioner has challenged the possession notice and auction notice issued under Section 13 (2) and 13(4) of the Securitization Act. The petitioner has also questioned the validity of the Notification dated 28.1.2003 issued by the Central Government bringing Co-operative Bank under the definition of 'Bank' for the purposes of Secruitization Act. 
It has been contended by the learned Counsel for the petitioner that when a mechanism has been provided under the Cooperative Societies Act for recovery of loans and advances then no other mode than prescribed under the Cooperative Societies Act can be adopted. Applying the provisions of Securitization Act in view of the notification dated 28.1.2003 is wholly unjustified and nonest.
 
It has been vehemently argued by the Counsel for the petitioner that the impugned notification dated 28.1.2003 is against the constitutional Scheme as provided under Articles 245 and 246 of the Seventh Schedule of the Constitution wherein the field of legislation by the Parliament and the State has been enumerated under the heading of Union List, State List and Concurrent List. The subject matter of 'Bank' and 'Banking company' comes under Entry 43 and 45 and the 'Coperative Society' is not included therein under the List I.
 The subject matter of cooperative society comes under Entry 32 of the State List i.e. the List II. Therefore, the Parliament has got no jurisdiction to legislate in respect of subject matter, which is enumerated under the State List ( List II). Furthermore, the cooperative society does not fall under the concurrent list. Elaborating his submission, learned Counsel for the petitioner has submitted that the cooperative Bank is basically a cooperative society and not a scheduled bank as per Reserve Bank of India, whereasthe Nationalised Banks, Corporate Banks and other Financial Institutions are scheduled banks. 
To strengthen his arguments, a reference has been made to the decision rendered in Great Bombay Cooperative Bank Ltd. Vs United Yarn Tex Pv. Ltd (2007) 6 SCC 236 wherein the Apex Court has discussed the provisions of the Securitisation Act, 2002, the Banking Regulation Act, 1949 and the RDBI Act, 1993 as compared to the respective State Cooperative Societies Act by taking note of the Notification dated 28.1.2003 and held in unambiguous words that by the NOtification dated 28.1.2003, the Cooperative Bank has been brought under the Supervision and control of the Reserve Bank of India under the machinery provided in the Banking Regulation Act, 1949 and not for other purposes. 
Learned Counsel for the petitioner has also invited our attention towards the judgment
 dated 22.4.2013 rendered in Shri Dhakdi Group Cooperative Cotton Seed and others vs. Union of India and others (Special Civil Application NO. 930 of 2011). By this judgment, the Gujrat High Court has declared the notification dated 28.1.2003 as ultra vires, unconstitutional and void ab initio. 
In contrast, on behalf of the respondents it has been argued that initiation of recovery proceedings under the Securitization Act cannot be said to unjust or illegal, which as a matter of fact were issued when the petitioner failed to deposit the amount inspite of notice. As far as the judgment of Gujrat High Court is concerned, it has no binding value upon this Court and the notification dated 28.1.2003 still holds the field in the State of Uttar Pradesh.
 Learned Counsel for the Bank has further submitted that the said Notification dated 28.1.2003 was also considered by the Bombay High Court and it had taken a different view. The Karnataka High Court, by the judgment and order dated 19.12.2011, has declared that the Notification dated 28.1.2003 is perfectly valid and legal. 
After careful sifting of the matter on record, prima-facie we are of the view that arguments advanced by the Counsel for the petitioner have force. It will be wholly incorrect to say that notification dated 28.1.2003 issued by the Central Government still holds the field in the State of U.P.
 as an order passed on a writ petition questioning the constitutionality of a parliamentary Act, whether interim or final keeping in view the provisions contained in clause (2) of Article 226 of the Constitution of India, will have effect throughout the territory of India subject of course to the applicability of the Act. [See: Kusum Ingots & Alloys Ltd. Union of India (2004) 6 SCC 254]. The Gujrat High Court in the aforesaid judgment has held that authorities are not entitled to invoke the provisions of the Securitization Act on the members of a Cooeprative Society but we are not going into the question of genuineness of the default, and if the petitioners are really defaulters, the Cooperative Banks are free to proceed in accordance with law laid down by the State Legislature but certainly not under the provisions of the Securitization Act. It may be added that the Gujrat High Court, while deciding the controversy, has taken into consideration the judgment of the Bombay High Court rendered in Shaikh Mehmood Shailh Bibhan Vs. The Authorized Officer, Narayan G. Mendon the Mogaveera Coop. Bank Ltd. and others reported in MANU/MH/0047/2011 and came to the conclusion that the Division Bench did not notice the paragraph 98 and 99 of the judgment of the Hon'ble Supreme Court rendered in Greater Bombay Co-operative Bank Ltd. We would also like to point out that the judgment of the Kerala High Court is of the year 2011 and the same was being respected but recently in the year 2013, the Gujarat High Court, after taking into consideration the provisions of Securitization Act, constitutional scheme and the various judgments, have declared the Notification dated 28.1.2003 as ultra vires. Prima facie, we are in full agreement with the view expressed by the Hon'ble Gujrat High Court in the judgment of Shri Dhakdi Group Cooperative Cotton Seed (supra). 
In the backdrop of the aforesaid facts, prima facie, a case for interim relief is made out. 
Admit. 
Issue notice to learned Attorney General of India. 
Notice on behalf of opposite parties Nos. 1, 3 and 4 has been accepted by the learned Chief Standing Counsel, whereas notice on behalf of opposite parties Nos. 5 and 6 has been accepted by Sri Sanjay Kumar Srivastava and on behalf of opposite party No.7 by Sri I.H. Farooqui, learned Assistant Solicitor General of India. 
Let reply be filed within six weeks. Rejoinder affidavit may be filed within next four weeks. 
List thereafter, showing the name of the Counsel mentioned above. 
Till the next date of listing, the operation and implementation of the impugned notice of auction dated 26.8.2013,
 issued on the basis of the proceedings initiated under SARFASI Act, in view of the notification dated 28.1.2003 of the Central Government, shall remain in abeyance. However, it is provided that pending disposal of the writ petition, the petitioner is restrained from alienating or transferring or altering the status of the property mortgaged to the Bank.�� 
Order Date :- 23.9.2013 
Ajit/-  

(2) RBI’s Discussion Paper on Early Recognition of Financial Stress, Prompt Steps for Resolution and Fair Recovery for Lenders

 

The said Paper is reproduced below:-

 

http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=715

 

Discussion Paper on Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy

 

Introduction

1.1 With the slowdown of the Indian economy, a number of companies/projects are under stress. As a result, the Indian banking system has seen increase in NPAs and restructured accounts during the recent years. Not only do financially distressed assets produce less than economically possible, they also deteriorate quickly in value. Therefore, there is a need to ensure that the banking system recognises financial distress early, takes prompt steps to resolve it, and ensures fair recovery for lenders and investors. This Paper outlines a corrective action plan that will incentivize early identification of problem cases, timely restructuring of accounts which are considered to be viable, and taking prompt steps by banks for recovery or sale of unviable accounts.

1.2 The main proposals are:

      i.        Early formation of a lenders’ committee with timelines to agree to a plan for resolution.

     ii.        Incentives for lenders to agree collectively and quickly to a plan – better regulatory treatment of stressed assets if a resolution plan is underway, accelerated provisioning if no agreement can be reached.

    iii.        Improvement in current restructuring process: Independent evaluation of large value restructurings mandated, with a focus on viable plans and a fair sharing of losses (and future possible upside) between promoters and creditors.

    iv.        More expensive future borrowing for borrowers who do not co-operate with lenders in resolution.

     v.        More liberal regulatory treatment of asset sales.

a.     Lenders can spread loss on sale over two years provided loss is fully disclosed.

b.    Takeout financing/refinancing possible over a longer period and will not be construed as restructuring.

c.     Leveraged buyouts will be allowed for specialised entities for acquisition of ‘stressed companies’.

d.    Steps to enable better functioning of Asset Reconstruction Companies mooted.

e.     Sector-specific Companies/Private equity firms encouraged to play active role in stressed assets market.

1.3 Going forward, while some regulatory and governmental measures may be required to address the factors that are leading to deteriorating asset quality, there is an equal need for proper credit discipline among lenders. That is, however, not the focus of this Paper.

2. Corrective Action Plan to Arrest Increasing NPAs

2.1 Early Recognition of Stress and Setting up of Central Repository of Information on Large Credits (CRILC)

2.1.1 Before a loan account turns into an NPA, banks should identify incipient stress in the account by creating a new sub-asset category viz. ‘Special Mention Accounts’ (SMA) in line with instructions issued vide RBI CircularDBS.CO.OSMOS/B.C./4/33.04.006/2002-2003 dated September 12, 2002. Further, within SMA category there should be three sub-categories as given in the table below:

SMA Sub-category

Basis for classification

SMA-NF

Non-financial (NF) signals of incipient stress (Please see Annex)

SMA-1

Principal or interest payment overdue between 31-60 days

SMA-2

Principal or interest payment overdue between 61-90 days

2.1.2 The Reserve Bank of India will set up a Central Repository of Information on Large Credits (CRILC) to collect, store, and disseminate credit data to lenders. The credit information would also include all types of exposures as defined under RBI Circular on Exposure Norms and will therefore, inter alia, include data on lenders’ investments in bonds/debentures issued by the borrower/obligor.

2.1.3 Banks will have to furnish credit information to CRILC on all their borrowers having aggregate fund-based and non-fund based exposure of Rs.50 million and above. While all scheduled commercial banks will mandatorily contribute their credit information on their borrowers/customers as above, systemically important non-banking financial companies (NBFC-SI) will also be asked to furnish such information. In addition, banks will have to furnish details of all current accounts of their customers with outstanding balance (debit or credit) of Rs.10 million and above.

2.1.4 Banks will be required to report, among others, the SMA status of the borrower to the CRILC. Individual banks will have to closely monitor the accounts reported as SMA-1 or SMA-NF as these are the early warning signs of weaknesses in the account. They should take up the issue with the borrower with a view to rectifying the deficiencies at the earliest. However, to start with, reporting of an account as SMA-2 by one or more lending banks/NBFC-SIs will trigger the mandatory formation of a Joint Lenders’ Forum and formulation of Corrective Action Plan (CAP) as envisioned in the subsequent paragraphs. Banks must put in place a proper Management Information and Reporting System so that any  account having principal or interest overdue for more than 60 days gets reported as SMA-2 on the 61st day itself.

2.1.5 It is the intention of the RBI that banks recognise warning signs of weakness in a borrowal account early and in due course would require banks to mandatorily form Joint Lenders’ Forum (JLF) and formulate CAP if an account is reported as SMA-NF for three quarters during a year to date or SMA-1 for any two quarters during a year to date, in addition to reporting as SMA-2 during any time. Banks should, therefore, prepare themselves for this development.

2.2 Formation of Joint Lenders’ Forum

2.2.1 As soon as an account is reported to CRILC as SMA-2, all lenders, including NBFC-SIs, should form a lenders’ committee to be called Joint Lenders’ Forum (JLF) under a convener and formulate a joint corrective action plan (CAP) for early resolution of the stress in the account. While the existing Consortium Arrangement for consortium accounts will serve as JLF and the Consortium Leader as convener, for accounts under  Multiple Banking Arrangements (MBA), the lender with the highest exposure (fund-based plus non-fund based) will convene JLF at the earliest and facilitate exchange of credit information on the account.

2.2.2 Alternatively, the borrower may request its lender/s, with substantiated grounds, for formation of a JLF if it senses imminent stress. When such a request is received by a bank, the account may be reported as SMA-NF under CRILC. The lenders may then form the JLF immediately.

2.2.3 With a view to limiting the number of JLFs to be formed, it is proposed that JLF formation would be made mandatory for distressed corporate borrowers, engaged in any type of activity, with aggregate fund based and non-fund based exposure of Rs.1000 million and above. Lenders, however, have the option of formation of JLFs even when the aggregate fund-based and non-fund based exposures in an account are less than Rs.1000 million.

2.2.4 All the lenders’ should formulate and sign an Agreement (which may be called JLF agreement) incorporating the broad rules for the functioning of the JLF.  The JLF should explore the possibility of the borrower setting right the irregularities/weaknesses in the account. The JLF will have the capability/option to invite representatives of the Central/State Government/Project authorities/Local authorities, if they have a role in the implementation of the project financed.

2.2.5 JLF formation and subsequent corrective actions will be mandatory in accounts having aggregate fund-based and non-fund based exposures of Rs.1000 million and above. Even in other cases lenders have to  monitor the asset quality and take corrective actions for effective resolution as deemed appropriate, under our extant guidelines. 

2.3 Corrective Action Plan (CAP) by JLF

2.3.1 JLF may explore various options to resolve the stress in the account. The intention of this Framework is not to encourage a particular resolution option, e.g. restructuring or recovery, but to arrive at an early and feasible resolution to preserve the economic value of the underlying assets as well as the lenders’ loans. The options under Corrective Action Plan (CAP) by the JLF would generally include:

(a) Rectification - Obtaining a specific commitment from the borrower to regularise the account so that the account  comes out of SMA status or does not slip into the NPA category, within a specific time period acceptable to the JLF without involving any loss or sacrifice on the part of the existing lenders. If the existing promoters are not in a position to bring in additional money or take any measures to regularise the account, the possibility of getting some other investors to the company may be explored by the JLF in consultation with the borrower. These measures are intended to turn-around the company without any change in terms and conditions of the loan.

(b) Restructuring - Consider the possibility of restructuring the account if it is prima facie viable and the borrower is not a wilful defaulter, i.e., there is no diversion of funds, fraud or malfeasance, etc.  At this stage, commitment from promoters for extending their personal guarantees along with their net worth statement supported by copies of legal titles to assets may be obtained along with a declaration that they would not undertake any transaction that would alienate assets without the permission of the JLF. Any deviation from the commitment by the borrowers affecting the security/recoverability of the loans may be treated as a valid factor for initiating recovery process. For this action to be sustainable, the lenders in the JLF may sign an Inter Creditor Agreement (ICA) and also require the borrower to sign the Debtor Creditor Agreement (DCA) which would provide the legal basis for any restructuring process. The formats used by the CDR mechanism for ICA and DCA could be considered, if necessary with appropriate changes. Further, a ‘stand still’ clause as in the case of CDR mechanism could be stipulated in the agreement to enable a smooth process of restructuring. The ICA may also stipulate that both secured and unsecured creditors need to agree to the final resolution.

(c) Recovery - Once the first two options at (a) and (b) above are seen as not feasible, due recovery process may be resorted to. The JLF may decide the best recovery process to be followed among the various legal and other recovery options available with a view to optimising the efforts and results.

2.3.2 The decisions agreed upon by a minimum of 75% of creditors by value and 60% of creditors by number in the JLF would be considered as the basis for proceeding with the restructuring or recovery action of the account, and will be binding on the lenders under the terms of the ICA.

2.3.3 The JLF is required to arrive at an agreement on the option to be adopted for CAP within 30 days from (i) the date of an account being reported as SMA-2  by one or more lending banks/NBFC-SIs, or (ii) receipt of request from the borrower to form a JLF, with substantiated grounds, if it senses imminent stress. The JLF should sign off the detailed final CAP within the next 30 days from the date of arriving at such an agreement.

2.3.4 If the JLF decides on options (a) or (b), but the account fails to perform as per the agreed terms under option (a) or (b), JLF should initiate recovery under option (c) and accelerated provisioning [as indicated in para 6.3.1] will be applicable in these accounts depending on the asset classification. 

3.  Restructuring Process

3.1 RBI’s extant prudential guidelines on restructuring of advances lay down detailed methodology and norms for restructuring of advances under sole banking as well as multiple/ consortium arrangements. Corporate Debt Restructuring (CDR) mechanism is an institutional but voluntary framework for restructuring of multiple/ consortium advances of banks where even creditors who are not part of CDR system can join by signing transaction to transaction based agreements.

3.2 If the JLF decides on restructuring the account as a CAP, it will refer the account to CDR Cell for restructuring after preliminary viability study.

3.3 In cases of accounts referred to CDR Cell by JLF, lenders who are not members of CDR mechanism will be required to sign transaction to transaction agreement under CDR mechanism for restructuring of a particular account.

3.4 Under extant instructions, CDR Cell is required to make the initial scrutiny of the restructuring proposals. As the preliminary viability of account has already been decided by JLF, CDR Cell need not duplicate this process and should directly prepare the Techno-Economic Viability (TEV) study and restructuring plan in consultation with JLF within 30 days from the date of reference to it by JLF.

3.5 For accounts with aggregate exposure of less than Rs.5000 million, the above-mentioned restructuring package should be submitted to CDR Empowered Group (EG) for approval. Under extant instructions, CDR EG can approve or suggest modifications but ensure that a final decision is taken within a total period of 90 days, which can be extended up to a maximum of 180 days from the date of reference to CDR Cell. However, the cases referred to CDR Cell by JLF will have to be finally decided by the CDR EG within the next 30 days. If approved by CDR EG, the restructuring package should be approved by all lenders and conveyed to the borrower within the next 15 days for implementation.

3.6 For accounts with aggregate exposure of Rs.5000 million and above, the TEV study and restructuring package prepared by CDR Cell will have to be subjected to an evaluation by an Independent Evaluation Committee (IEC)1 of experts fulfilling certain eligibility conditions. The IEC will look into the viability aspects after ensuring that the terms of restructuring are fair to the lenders. The IEC will be required to give their recommendation in these aspects to the CDR Cell under advice to JLF within a period of 30 days. Thereafter, considering the views of IEC if the JLF decides to go ahead with the restructuring, the same should be communicated to CDR Cell. Thereafter, CDR EG should decide on the approval/modification/rejection within the next 30 days. If approved by CDR EG, the restructuring package should be approved by all lenders and conveyed to the borrower within the next 15 days for implementation.

3.7 Restructuring cases will be taken up by JLF only in respect of assets reported as Standard, SMA or Sub-Standard by one or more lenders of the JLF.

3.8 Wilful defaulters will normally not be eligible for restructuring. However, the JLF may review the reasons for classification of the borrower as a wilful defaulter and satisfy itself that the borrower is in a position to rectify the wilful default. The decision to restructure such cases should however also have the approval of the board/s of individual bank/s within the JLF who have classified the borrower as wilful defaulter.

3.9 The viability of the account should be determined by the JLF based on acceptable viability benchmarks determined by them. Illustratively, the parameters may include the Debt Equity Ratio, Debt Service Coverage Ratio, Liquidity/Current Ratio and the amount of provision required in lieu of the diminution in the fair value of the restructured advance, etc. Further, the JLF may consider the benchmarks for the viability parameters adopted by the CDR mechanism and adopt the same with suitable adjustments taking into account the fact that different sectors of the economy have different performance indicators. 

4.  Other Issues/Conditions Relating to Restructuring

4.1 The general principle of restructuring should be that the equity holders bear the first loss rather than the debt holders. With this principle in view and also to ensure more ‘skin in the game’ of promoters, JLF/CDR may consider the following options when a loan is restructured:

·         Possibility of  transferring  equity of the company  by promoters to the lenders to  compensate for their sacrifices;

·         Promoters infusing more equity into their companies;

·         Transfer of the promoters’ holdings to a security trustee or an escrow arrangement till turnaround of company. This will enable a change in management control, should lenders favour it.

4.2 In case a corporate has undertaken diversification or expansion of the activities which has resulted in the stress on the core-business of the group, a clause for sale of non-core assets or other assets may be stipulated as a condition for restructuring the account if under the TEV study, the account is likely to become viable on hiving-off of non-core activities and assets. 

4.3   For restructuring of dues in respect of listed companies, lenders may be ab-initio compensated for their loss/sacrifice (diminution in fair value of account in net present value terms) by way of issuance of equities of the company upfront, subject to the extant regulations and statutory requirements. In such cases, the restructuring agreement shall not incorporate any right of recompense clause. For unlisted companies, the JLF will have option of either getting equities issued or incorporate suitable ‘right to recompense’ clause.

4.4 In order to safeguard promoters’ control over companies, the equity so issued may bestow ‘call’ option/‘right of first refusal’ to the promoters group before the banks sell the same. However, such call option/right of first refusal can only be exercised, after the entire loan and the recompense has been repaid. Further, the price of shares under such call has to be equal to the fair value of the shares at the time of exercise.

4.5 If acquisition of such equity shares results in breaching the extant regulatory Capital Market Exposure (CME) limit, RBI will give exemption to the lenders from the CME limit on a case-by-case basis.

4.6 In order to distinguish the differential security interest available to secured lenders, partially secured lenders and unsecured lenders, the JLF/CDR could consider various options like:

·         Prior agreement in the ICA among the above classes of lenders regarding repayments, say, as per an agreed waterfall mechanism;

·         A structured agreement stipulating priority of secured creditors;

·         Appropriation of repayment proceeds among secured, partially secured and unsecured lenders in certain proportion, say, 50%, 30% and 20%.

The above is only an illustrative list and the JLF may decide on a mutually agreed option. It also needs to be emphasised that while one bank may have a better security interest when it comes to one borrower, the case may be vice versa in the case of another borrower. So, it would be beneficial if lenders appreciate the concerns of fellow lenders and arrive at a mutually agreed option with a view to preserving the economic value of assets. Once an option is agreed upon, the bank having the largest exposure may take the lead in ensuring distribution according to agreed terms once the restructuring package is implemented.

4.7   As regards prudential norms and operational details, RBI’s guidelines on CDR Mechanism, including OTS, will be applicable to the extent that they are not inconsistent with this proposed Framework. RBI will also further examine measures to strengthen the capacity under CDR Mechanism.

5. Refinancing of Project Loans

In terms of extant instructions (circular DBOD.No.BP.BC.144/21.04.048-2000 dated February 29, 2000 on ‘Income Recognition, Asset Classification, Provisioning and other related matters and Capital Adequacy Standards - Takeout Finance’), banks can refinance their existing infrastructure project loans by entering into take-out financing agreements with any financial institution on a pre-determined basis. Henceforth, RBI may allow infrastructure and other project loans to be refinanced by other institutions which substantially (60% or more of the outstanding loan by value) take over the loan from the existing set of financing banks of the borrowers and the refinancing institution(s) can fix a repayment period by taking into account the life cycle of the project and cash flows from the project. In such cases, even if the revised repayment period is longer than the residual repayment period in the earlier bank’s books the account will not be considered as restructured, as long as a proper due diligence has been done by the refinancing bank/institution.

6. Prudential Norms on Asset Classification and Provisioning

6.1 While a restructuring proposal is under consideration by the JLF/CDR, the usual asset classification norm would continue to apply. The process of re- classification of an asset should not stop merely because restructuring proposal is under consideration by the JLF/CDR.

6.2 However, as an incentive for quick implementation of a restructuring package, the special asset classification benefit on restructuring of accounts as per extant instructions would be available for accounts undertaken for restructuring under the JLF framework, subject to adherence to the overall timeframe for approval of restructuring package detailed in paragraphs 3.4 to 3.6 above and implementation of the approved package within 120 days from the date of approval. The asset classification status as on the date of formation of JLF would be the relevant date to decide the asset classification status of the account after implementation of the final restructuring package. As advised to banks vide RBI circular dated May 30, 2013, the special asset classification benefit as above will however be withdrawn for all restructurings with effect from April 1, 2015 with the exception of provisions related to changes in Date of Commencement of Commercial Operations (DCCO) in respect of infrastructure and non-infrastructure project loans.

6.3 Penal Measures for non-adherence

6.3.1 In cases where banks/NBFCs-SIs fail to report SMA status of the accounts to CRILC or resort to methods with the intent to conceal the actual status of the accounts e.g., sanctioning additional facilities without genuine reasons, and the accounts subsequently turn into NPAs, RBI may prescribe accelerated provisioning as appended below for these accounts and/or other supervisory actions. The current provisioning requirement and the proposed accelerated provisioning in respect of such non performing accounts are as under:

Asset Classification

Period as NPA

Current provisioning (percentage)

Proposed accelerated provisioning (percentage)

Sub- standard 
(secured)

Up to 6 months

15 No change

6 months to 1 year

15 30
Sub-standard (unsecured ab-initio)

Up to 6 months

25 (other than infrastructure loans) 25
20 (infrastructure loans)

6 months to 1 year

25 (other than infrastructure loans) 50
20 (infrastructure loans)
Doubtful  I

2nd year

25 (secured portion) 50 (secured portion)
100 (unsecured portion) 100 (unsecured portion)
Doubtful  II

3rd & 4th year

40 (secured portion) 100 for both secured and unsecured portions
100 (unsecured portion)
Doubtful III

5th year onwards

100 100

6.3.2 Any of the lenders who has agreed to the restructuring decision under the CAP by JLF and is a signatory to the ICA and DCA, but changes their stance later on, or delays/refuses to implement the package, may also be subjected to accelerated provisioning requirement as indicated at para 6.3.1 above, on their exposure to this borrower i.e., if it is classified as an NPA. If the account is standard in those lenders’ books, the provisioning requirement will be 5%. Further, any such backtracking by a lender might attract negative supervisory view during Supervisory Review and Evaluation Process.

6.3.3 Presently, asset classification is based on record of recovery at individual banks and provisioning is based on asset classification status at the level of each bank. However, if lenders  fail to convene the JLF or fail to agree upon a common CAP within the stipulated time frame, the account will be subjected to accelerated provisioning as indicated at para 6.3.1 above.

6.3.4 If the escrow maintaining bank under JLF/CDR Mechanism does not appropriate proceeds of repayment by the borrower among the lenders as per agreed terms resulting into downgradation of asset classification of the account in books of other lenders, the account with the escrow maintaining bank would attract the asset classification which is lowest among the lending member banks.

7. Wilful Defaulters, Accountability of Promoters / Directors / Auditors

7.1 With a view to ensuring better corporate governance structure in companies and ensuring accountability of independent/professional directors, promoters, auditors, etc. henceforth, the following prudential measures will be applicable:

(a) The provisioning in respect of existing loans/exposures of banks to companies having director/s (other than nominee directors of government/financial institutions brought on board at the time of distress), whose name/s appear more than once in the list of wilful defaulters, will be 5% in cases of standard accounts; if such account is classified as NPA, it will attract accelerated provisioning as indicated at para 6.3.1 above. (In terms of paragraph 2.5 (a) of Master Circular on Wilful Defaulters dated July 1, 2013, no additional facilities should be granted by any bank/FI to the listed wilful defaulters.) This is a prudential measure since the expected losses on exposures to such borrowers are likely to be higher. 

(b) With a view to discouraging borrowers/defaulters from being unreasonable and non-cooperative with lenders in their bonafide resolution/recovery efforts, banks may classify such borrowers as non-cooperative borrowers2, after giving them due notice if satisfactory clarifications are not furnished. Banks will be required to make higher/accelerated provisioning in respect of new loans/exposures to such borrowers as also new loans/exposures to any other company promoted by such promoters/ directors or to a company on whose board any of the promoter / directors of this non-cooperative borrower is a director. The provisioning applicable in such cases will be at the rate of 5% if it is a standard account and accelerated provisioning as per para 6.3.1 if it is an NPA. This is a prudential measure since the expected losses on exposures to such non-cooperative borrowers are likely to be higher.

(c) RBI will create a database of directors on the boards of companies classified as non-cooperative borrowers for dissemination to lenders.

(d) At present, the list of Suit filed accounts of Wilful Defaulters (Rs.2.5 million and above) is submitted by banks to the Credit Information Companies (CICs) of which they are member(s), who display the same on their respective websites as and when received. The list of non-suit filed accounts of Wilful Defaulters (Rs.2.5 million and above) is confidential and is disseminated by RBI among banks and FIs only for their own use. The current system of banks/FIs reporting names of suit filed accounts of Wilful Defaulters and its availability to the market by CICs/RBI will be enhanced to make it as current as possible, as against the current 3-4 months’ time lag from the date of reporting by a bank.

7.2 Banks will have to strictly comply with the existing instructions about formal lodging of complaints with ICAI against company auditors in case of observance of falsification of accounts/wrong certification of stock statement/end-use certificate etc. Pending disciplinary action by ICAI, the complaints will also be received in the RBI for records. The names of the CA firms against whom many complaints have been received from different banks may be flagged for information of all banks. Banks should consider this aspect before assigning any work to them. The names may also be shared with other regulators/MCA/CAG for information.

7.3 Further, banks may seek explanation from advocates who wrongly certify as to clear legal titles in respect of assets or valuers who overstate the security value, by negligence or connivance, and if no reply/satisfactory clarification is received from them within one month, they may report their names to IBA for record and necessary action.  IBA may circulate the names of such advocates/valuers among its members for consideration before availing of their services in future. 

8. Credit Risk Management

8.1 Lenders should carry out their independent and objective credit appraisal in all cases and must not depend on credit appraisal reports prepared by outside consultants, especially the in-house consultants of the borrower company.

8.2 Banks/lenders should carry out sensitivity tests/scenario analysis, especially for infrastructure projects, which should inter alia include project delays and cost overruns. This will aid in taking a view on viability of the project at the time of deciding CAP.

8.3 Lenders should ascertain the source and quality of equity capital brought in by the promoters /shareholders. Multiple leveraging, especially, in infrastructure projects, is a matter of concern as it effectively camouflages the financial ratios such as Debt/Equity ratio, leading to adverse selection of the borrowers. Therefore, lenders should ensure at the time of credit appraisal that debt of the parent company is not infused as equity capital of the subsidiary/SPV.

8.4 While carrying out the credit appraisal, banks should verify as to whether the names of any of the directors of the companies appear in the list of defaulters/ wilful defaulters by way of reference to DIN / PAN etc. Further, in case of any doubt arising on account of identical names, banks should use independent sources for confirmation of the identity of directors rather than seeking declaration from the borrowing company. 

8.5 With a view to ensuring proper end-use of funds and preventing diversion/siphoning of funds by the borrowers, lenders could consider engaging auditors for specific certification purpose without relying on certification given by borrower’s auditors.  However, this cannot substitute bank’s basic minimum own diligence in the matter.

9. Reinforcement of Regulatory Instructions

9.1 RBI reiterates instructions regarding restrictions placed on banks on extending credit facilities including non-fund based limits, opening of current accounts, etc. to constituents who are not their regular borrowers. Banks must take necessary corrective action in case the above instructions have not been strictly followed. Further, RBI will ensure strict adherence by banks to these instructions. As any breaches of RBI regulations in this regard are likely to vitiate credit discipline, RBI would consider penalising the banks in case of breaches.

9.2 Banks are custodians of public deposits and are therefore expected to make all efforts to protect the value of their assets. Banks are required to extinguish all available means of recovery before writing off any account fully or partly. It is observed that many banks are resorting to technical write off of accounts, which reduces incentives to recover. Banks resorting to partial and technical write-offs should not show the remaining part of the loan as standard asset. With a view to bring in more transparency, henceforth banks would be required to disclose full details of write offs including separate details about technical write offs.

10.  Sale of NPAs and ARCs

10.1  ARCs should be construed as a supportive system for stressed asset rather than the last resort to dispose of NPAs by banks. Sale of assets to ARCs at a stage when the assets have good chance of revival and fair amount of realizable value, for rehabilitation and reconstruction is encouraged.

10.2 According to current instructions on sale of financial asset by a bank to ARCs, if the sale is for a value higher than the Net Book Value (NBV), the excess provision is not allowed to be reversed but banks will have to utilise the same to meet the shortfall / loss on account of sale of other financial assets to Securitisation Company (SC) / Reconstruction Company (RC). However, banks are required to provide for any shortfall if the sale value is lower than the NBV. With a view to bringing in uniformity as also incentivising banks to recover appropriate value in respect of their NPAs promptly, the Reserve Bank will allow banks to reverse the excess provision on sale of NPA if the sale is for a value higher than the NBV to its P&L account in the year the amounts are received. Further, as an incentive for early sale of NPAs, the Reserve Bank will allow banks to spread over any shortfall, i.e., if the sale value is lower than the NBV, over a period of two years. This facility of spreading over the shortfall would however be available for NPAs sold up to March 31, 2015 and will be subject to necessary disclosures.

10.3 In terms of extant instructions, floating provisions can be used by banks only for contingencies under extraordinary circumstances for making specific provisions in impaired accounts after obtaining board's approval and with prior permission of RBI. The Reserve Bank will allow banks to use floating provisions towards accelerated provisioning /additional provisions incurred at the time of sale of NPAs as per their approved internal policy without obtaining prior permission of RBI.

10.4 The promoters of the company/defaulting borrowers shall be barred from directly/ indirectly buying back the asset from the ARCs. Legal issues involved, if any, would be examined by RBI. 

10.5 Current restrictions of Government of India (GOI)/Central Vigilance Commission (CVC) on bilateral sale of assets (by way of private treaty) would be taken up with the Government by suggesting controls as follows:

·         Price being not less than the Reserve Price fixed for the asset and after price discovery through one auction.

·         Public advertisements of sale in at least 2 leading newspapers inviting offers from anyone who is willing to offer a higher amount.

·         If the bilateral sale covers the entire dues to the bank and is with the consent of the borrower, the auction process may be dispensed with.

10.6  Sale of assets between ARCs is not permitted under the SARFAESI Act provisions. In order to encourage liquidity and price discovery of stressed assets, sale of assets between ARCs may be permitted. The issue will be taken up with the Government.

10.7 The ability of the ARCs to raise limited debt funds to rehabilitate units will be considered. This will be accompanied by increasing their minimum level of capitalisation in view of recent liberalisation of FDI ceilings and enhancement of working funds. The ARCs will be encouraged to reach certain minimum level of AUM targets.

10.8 Banks using ARCs as a price discovery vehicle should be more transparent, including by disclosing the Reserve Price and specifying clauses for non-acceptance of bids, etc. If a bid received is above the Reserve Price and also fulfils the other conditions specified, acceptance of that bid would be mandatory.

10.9  Methodologies for Independent Valuation of NAVs of Security Receipts (SRs) will  be examined / considered. Further work on this will be done by looking at the valuation methodologies used in this regard and discussion with SEBI, Institution of Valuers, etc.

10.10 Large designated NBFCs could be allowed to assign stressed assets to ARCs. If any of these designated NBFCs are not notified under the SARFAESI Act, the issue of their notification will be taken up with the Government. However, a bank /NBFC cannot sell assets to its own promoted ARC or an ARC where it owns at least 10% equity.

10.11 PE firms and large NBFCs with proven expertise in resolution/recovery may be allowed to participate in auctions through explicit regulatory affirmation. Such entities will have to be provided authority under SARFAESI Act on selective basis to deal with specific assets.

10.12 Appropriate incentive structures (e.g. please see para 10.13 and 11.3) may be built so as to provide greater role to PE firms and other institutions in restructuring of troubled company accounts. These institutions can be expected not only to bring additional funds for restructuring but also bring in expertise for management of the business unit in question.

10.13 In terms of extant instructions, banks are generally not allowed to finance acquisition of promoters’ stake in Indian companies. The underlying reasoning being promoters should acquire equity stake from their own sources and not through borrowings.  The Reserve Bank would allow banks to extend finance to ‘specialized’ entities put together for acquisition of troubled companies. The lenders should however ensure that these entities are adequately capitalised.

10.14 Alternatively (or additionally), a specialized institution may be created with equity/ quasi-equity participation of the above entities or international institutions with the Government of India holding a part of the stake. This institution may participate in restructuring of borrowal accounts along with banks and other lenders. Government may take a view on this matter.

10.15 In terms of extant instructions, an NPA in the books of a bank is eligible for sale to other banks only if it has remained as NPA for at least two years in the books of the selling bank. The Reserve Bank will withdraw this minimum holding period for any initial loan sale. However, the bank purchasing the NPA will, have to hold the asset in its books for at least one year before selling the asset.

11. DRTs and Other Recovery Infrastructure

11.1 The issues of large scale vacancies in DRTs and creating of special cadre of officers will be taken up with the Government. The post of Presiding Officers (POs) can be sought to be filled through experienced ex-bankers fulfilling certain eligibility norms.

11.2 Additional DRT benches at centres with large backlogs may be created. A separate bench for speedy disposal of SARFAESI related cases may be established in DRTs. Further, adequate staffing of Recovery Officers may have to be ensured by the Government.

11.3 It is learnt that certain issues relating to acquisition/restructuring of stressed companies where CLB involvement may help have been taken up by IBA. In cases of companies involved in / potentially involved in frauds etc., special privileges by CLB may be considered to protect the new management. The issue will be taken with the Government.

11.4 Recommendation will be made to the Government for establishing Special Courts/ Tribunals to deal with cases involving Section 138 of Negotiable Instruments Act, 1881. Recommendation may also be made to the Government to expedite setting up of special benches in every High Court for corporate cases.

11.5 Currently security registration, especially registered mortgages, is done at district level and Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is generally used to register equitable mortgages. The Government mandate to register all types of mortgages with CERSAI will have to be strictly enforced among banks and NBFCs.

11.6 To address resource issues of CERSAI, RBI will take up the issue of funding with GOI for enhancing its human resource and technology upgradation.

11.7 The issue of tax claims and other authorities, workers claims etc. getting raised at the last moment and seeking ‘priority’ over secured creditors or getting ‘stay’ order distort the recovery measures initiated by the lenders. The matter will be taken up with Government for fixing ‘limits’ to such claims.

11.8 In case of default in infrastructure project loans, where termination notice is issued to the project authority calling for payment of Debt Due, the termination payment is received after a lengthy procedure.The Government may be requested to review the procedure.

12.  Board oversight

12.1 The Board of Directors should take all necessary steps to arrest the deteriorating asset quality in banks and should focus on improving the credit risk management system. Early recognition of problems in asset quality and resolution envisaged in this paper requires the lenders to be proactive and make use of CRILC as soon as it becomes functional.

12.2 Boards should put in place a policy for timely providing of credit information to and access of credit information from CRILC, prompt formation of JLFs, monitoring the progress of JLFs and periodical review of the above policy.

12.3 The boards of banks should put in place a system for proper and timely classification of borrowers as wilful or/and non-cooperative. Further, boards should review the accounts classified as such.

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Annex

Non-financial Signals of Stress

Illustrative list of any one of the following signals that may lead to categorise an account as SMA-NF:

1. Delay of 90 days or more in (a) submission of stock statement / other stipulated operating control statements or (b) credit monitoring or financial statements or (c) non-renewal of facilities based on audited financials.

2.  Actual sales / operating profits falling short of projections accepted for loan sanction by 40% or more; or a single event of non-cooperation / prevention from conduct of stock audits by banks; or reduction of Drawing Power (DP) by 20% or more after a stock audit; or evidence of diversion of funds for unapproved purpose; or drop in internal risk rating by 2 or more notches in a single review.

3.  Return of 3 or more cheques (or electronic debit instructions) issued by borrowers in 30 days, on grounds of non-availability of balance / DP in the account or return of 3 or more bills / cheques discounted or sent under collection by the borrower.

4. Devolvement of Deferred Payment Guarantee (DPG) instalments or LCs or invocation of BGs and its non-payment within 15 days.

5. Third request for extension of time either for creation or perfection of securities as against time specified in original sanction terms or compliance with any other terms and conditions of sanction.

6. Increase in frequency of overdrafts in current accounts.

7. The borrower reporting stress in the business and financials.

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1The constitution of the IEC and the funding needs for payment of fees for independent experts would be decided by Indian Banks’ Association (IBA) in consultation with RBI.

2A non-cooperative borrower is broadly one who does not provide necessary information required by a lender to assess its financial health even after 2 reminders; or denies access to securities etc. as per terms of sanction or does not comply with other  terms of loan agreements within stipulated period; or is hostile / indifferent / in denial mode to negotiate with the bank on repayment issues; or plays for time by giving false impression that some solution is on horizon; or resorts to vexatious tactics such as litigation to thwart timely resolution of the interest of the lender/s. The borrowers will be given 30 days’ notice to clarify their stand before their names are reported as non-cooperative borrowers. 

(3) True, So True

 

Mr Firoz Poonawalla has sent the following useful piece:- 

TRUE, SO TRUE 

If you want to live a happy life, tie it to a goal, not to people or things.

" I always feel happy. You know why ?
Because I don't expect anything from anyone.
Expectations always hurt. Life is short,
So love your life, Be happy, and keep smiling,
that's life, feel it, live it, love it and enjoy it "
                      (William Shakespeare)

==================================================================
A man died, when he realized it, he saw God coming closer with a suitcase in his hand.
- God said: Alright son its time to go.
- surprised the man responded: Now? So soon? I had a lot of plans...
- I'm sorry but its time to go.

- What do you have in that suitcase? the man asked.
- God answered: Your belongings.
- My belongings? you mean my things, my clothes, my money?
-God answered: Those things were not yours they belonged to the earth.

- Is it my memories? the man asked.
-God answered: those never belonged to you they belonged to Time

- Is it my talents?
-God answered: those were never yours they belonged to the circumstances.

- Is it my friends and family?
-God answered: I'm sorry they were never yours they belonged to the path.

- Is it my wife and son?
- God answered: They were never yours the belonged to your heart.

- Is it my body?
- God answered: that was never yours it belonged to the dust.

-Is it my soul?
God answered: No that is mine.

Full of fear, the man took the suitcase from god and opened it just to find out the suitcase was empty.
- With a tear coming down his cheek the man said: I never had anything???
-God answered: that is correct, every moment you lived were only yours. Life is just a moment. a moment that belongs to you. For this reason enjoy this time while you have it. Don't let anything that you think you own stop you from doing so.
-Live Now
-Live your life
- Don't forget to be happy, that is the only thing that matters.
- Material things and everything else that you fought for stay here.
-YOU CAN'T TAKE ANYTHING

Share this reflection with anyone you love or appreciate. Enjoy every second you live.  

DRT Solutions Weekly Mail – 295th Issue dated 3rd January ’14

All Weekly mails right from 1st Issue to latest, click links on top of this page

 


 

(1) Supreme Sacrifice for Speedy Justice 

The following news item is self explanatory:-

Supreme Sacrifice for Speedy Justice

http://www.newindianexpress.com/thesundaystandard/Supreme-Sacrifice-for-Speedy-Justice/2013/12/29/article1970479.ece

In a step towards creating a speedy justice delivery system, 2014 will see the Supreme Court of India working more than in 2013.

In a bid to lessen the pendency of cases that has already crossed the mark of three crores, Chief Justice of India P Sathasivam has cut down the number of holidays of the Supreme Court from 2014 onwards.

As per the Supreme Court’s calendar for 2014, of the 365 days, the court will work for nearly 200 days whereas in 2013, the court worked for nearly 176 days and 189 days were holidays which included roughly 104 Saturdays and Sundays, and nearly two-and-a-half months of summer vacations.

The British legacy of a nearly two-month-long summer vacation is still a continuing tradition in the apex court.

As per the provisions of the Supreme Court Judges (Salaries and Conditions of Service) Act, 1958, besides the apex court’s holidays and vacations, the individual judges are also entitled to their own quota of leave.

Depending on the number of years a judge puts in the service, he is entitled to certain days of leave on full salary, certain other offs on half salary and some more days off on one quarter salary.

Data from the Department of Justice reveals that the total number of cases pending in the apex court has gone up from last year and has already crossed 65,000 this year.

 In 2009, the Law Commission in its 230th report had stated that vacations in the higher judiciary should be curtailed by at least 10 to 15 days and the court working hours should be extended by at least half an hour.

“Considering the huge pendency of cases at all levels of judicial hierarchy, it has become necessary to increase the number of working days. It has to be introduced at all levels of judicial hierarchy and must start from the apex court.

With the increase in the salaries and perks of the Judges, it is their moral duty to respond commensurately,” the commission report had then stated.

The Law Commission’s report, which is under consideration of Chief Justice of India and all the respective Chief Justices of High Courts, also highlighted the need of ensuring speedy justice. It noted, “Speedy justice is the right of every litigating person. There is no denying the fact that delay frustrates justice. In the present set-up it often takes 10, 20, 30 or even more years before a matter is finally decided.”

Last year, the Delhi High Court had calculated that 464 years would be required to clear the arrears with the present strength of the judges in the high court. The position may not be that gloomy but is still alarming.

In Allahabad High Court, more than eight-and-a-half lakhs of cases are pending which include criminal appeals of the year 1980-82 and criminal revisions of the year 1990-95.

 

(2) A Watershed Year for Supreme Court 

The following news item is self explanatory:-

A watershed year for Supreme Court

December 31, 2013 04:13 IST 

http://www.thehindu.com/news/national/a-watershed-year-for-supreme-court/article5520786.ece

 

For the Supreme Court, 2013 will go down as a watershed year as it put an end to criminalisation of politics, disqualifying convicted MPs/MLAs, ordered electoral reforms and asserted its supremacy and authority in all spheres.

On July 19, Justice P. Sathasivam made his Kadappanallur village in Erode district proud by becoming the 40th Chief Justice of India. Born on April 27, 1949, Justice Sathasivam was the first graduate in his agricultural family. It was after 60 years that someone from Tamil Nadu became CJI. Justice Patanjali Sastri, who was the CJI from 1951 to 1954, had represented the undivided Madras Presidency.

The former Union Law Minister, Ashwini Kumar, had to resign after the court said the CBI was acting like a “caged parrot,” dancing to the tunes of its masters. It criticised the Minister when he accessed the CBI’s status report in the coal scam case, despite the specific order that the report not be shown to anyone, including the Law Officer.

When reports emerged about the involvement of a retired Supreme Court judge in an incident of sexual harassment of a law intern, the CJI ordered a fact-finding probe immediately. It prima facie came to light that Justice A.K Ganguly, who retired in February 2012, had made unwelcome sexual advances to the intern. It has now snowballed into a controversy, with the Centre deciding to seek a Presidential Reference to the Supreme Court for removing Justice Ganguly as Chairperson of the West Bengal Human Rights Commission.

The year started on a bad note for Gujarat Chief Minister Narendra Modi as the Supreme Court upheld the appointment of Justice R.A. Mehta as Gujarat Lokayukta by Governor Kamla Beniwal, who bypassed the government. But Justice Mehta did not take charge.

The court rejected a plea for revisiting the nine-judge ruling in 1993, giving primacy to the Collegium in appointment of Supreme Court and High Court judges. A two-judge Bench had referred the issue to a three-judge Bench, which however, found no merit in the petition.

The court struck down as unconstitutional Section 8(4) of the Representation of the People Act that allowed convicted lawmakers a three-month period for appealing in a higher court. The court made it clear that the ruling would be prospective, and those who had already gone on appeal in the High Courts or the Supreme Court against their convictions would be exempt from it. As a result, RJD leader Lalu Prasad lost his membership of Parliament, after he was sentenced to five years in a fodder scam case.

To bring about purity in elections, the court ruled that a voter can exercise the option of negative voting and reject all the candidates as unworthy of election. The court said he/she could press the ‘None of the Above’ button in the Electronic Voting Machine (EVM) and decide not to vote for any of the candidates.

The court allowed the Election Commission to use Viable Voter Verifiable Paper Audit Trail in the EVMs in phases to ensure transparency in the voting process.

Observing that the right to know about the candidate is a natural right in a democracy, it held that non-disclosure of information by a candidate in his/her affidavit by keeping the columns blank would result in rejection of his nominations by the EC. At present, the EC has no power to reject nominations if candidates either leave some columns in the affidavit blank or gives false information. However, a case can be registered under the Indian Penal Code for giving false information.

The court upheld the ban the Tamil Nadu government imposed on the screening of Dam 999 in the State as the film highlighted the damage being caused to a dam.

The AIADMK government got a major boost when the court refused to interfere with its policy decision to convert the new Tamil Nadu Secretariat complex into a super-speciality hospital. Such a policy could not be termed illegal, it said.

In a relief to two Italian marines, the court said Kerala had no jurisdiction to investigate the incident of shooting on February 15, 2012, in which two fishermen were killed. Only the Union of India had the jurisdiction to proceed with the probe and trial of the two marines, it said. The court asked the Centre to set up a special court to try Massimilano Latorre and Salvatore Girone. But till now, there is no substantial progress in the trial before the special court.

Tamil Nadu scored a major victory when the court directed the Centre to notify the final award of the Cauvery Water Disputes Tribunal, dated February 5, 2007. It criticised the Centre for abdicating its responsibility of notifying the award as per the mandate of the Inter State Water Disputes Act. The award was notified on February 19.

Novartis AG, a multinational pharmaceutical company, suffered a setback when the court held that it was not entitled to a patent in India for the beta crystalline form of its cancer drug marketed as ‘Glivec’ or ‘Gleevec.’ Novartis said this drug deserved a patent because there was a 30 per cent increase in the bioavailability of the medicine in its new form.

In a major relief to the Centre, the court upheld the FDI policy in multi-brand retail, stating that it did not suffer from any unconstitutionality, illegality, arbitrariness or irrationality. “The policy aimed at throwing out the middlemen, who are a curse to Indian economy and who are sucking it, has to be welcomed.”

The court commuted into life imprisonment the death sentence awarded to Mahendra Nath Das, whose mercy petition was rejected by the President after 12 years. But it declined a similar relief to Bhullar, saying such a plea could not be entertained in cases of terrorist activities.

In a major setback to gay activists, the court held that homosexuality or unnatural sex between two consenting adults was illegal under Section 377 of the Indian Penal Code and amounted to an offence, and the provision did not suffer from any constitutional infirmity. This forced the Centre and Naz Foundation to file review petitions.

(3) Asaparagus (Shatavari in Hindi) 

 

Mr Firoz Poonawalla has sent the following useful information:- 

Asparagus (FWD message)

 

When I was in the US navy I was stationed in Key West, FL. I worked at the clinic at Naval Air Station on Big Coppitt Key just a few mile north of Key West. The hospital at Key West was for out patient only for retired armed forces personnel that lived in the area. If you needed to be hospitalized you were sent to Homestead AFB Florida. I had the day off and just went inside the hospital(Corpman barracks were next to hospital). There was a retired navy man that worked in the lab and he was very interesting gentleman to talk with. He was a retired biochemist from the USN. he asked me what was I doing on that day and I  said I had the day off. I wish I was working as the crew on today was taking a sailor to Homestead as he had a very bad kidney infection.

 

Now this elderly gent told me the man should have eaten more asparagus and  he wouldn't have that problem. I asked why? I'll never forget him saying do you eat asparagus and I said yes, I love them.  He replied you notice how your urine stinks after eating asparagus? I said well I never thought it was what I ate but yes it does have a pungent odor.

 

It is because it is detoxifying your body of harmful chemicals!!!

This was back in 1986 when I was stationed there and to read this email again I had to share this story...Eat more asparagus my friends.

 

Asparagus -- Who knew?

 

My Mom had been taking the full-stalk canned style asparagus, pureed it and took 4 tablespoons in the morning and 4 tablespoons later in the day. She did this for over a month. She is on chemo pills for Stage 3 lung cancer in the pleural area and her cancer cell count went from 386 down to 125 as of this past week.

Her oncologist said she will not need to see him for 3 months.

 

THE ARTICLE:


Several years ago I met a man seeking asparagus for a friend who had cancer. He gave me a copy of an article, entitled "Asparagus For Cancer" printed in the Cancer News Journal, December 1979. I will share it here, just as it was shared with me: I am a biochemist, and have specialized in the relation of diet to health or over 50 years.

Several years ago, I learned of the discovery of Richard R. Vensal, D.D.S. that asparagus might cure cancer. Since then, I have worked with him on his project. We have accumulated a number of favorable case histories.

Here are a few examples:

 

Case No. 1, A man with an almost hopeless case of Hodgkin's disease (cancer of the lymph glands) who was completely incapacitated.  Within 1 year of starting the asparagus therapy, his doctors were unable to detect any signs of cancer, and he was back on a schedule of strenuous exercise.

Case No. 2, A successful businessman, 68 years old, suffered from cancer of the bladder for 16 years.  After years of medical treatments, including radiation without improvement, he began taking asparagus.  Within 3 months, examinations revealed that his bladder tumor had disappeared and that his kidneys were normal.


Case No. 3, On March 5th 1971, a man who had lung cancer was put on the operating table where they found lung cancer so widely spread that it was inoperable.  The surgeon sewed him up and declared his case hopeless. On April 5th he heard about the Asparagus therapy and immediately started taking it. By August,
x-ray pictures revealed that all signs of the cancer had disappeared. He is now back at his regular business routine.

Case No. 4, A woman had been troubled for a number of years with skin cancer. She developed different skin cancers which were diagnosed by the acting specialist as advanced. Within 3 months after beginning asparagus therapy, the skin specialist said her skin looked fine with no more skin lesions. This woman reported that the asparagus therapy also cured her kidney disease, which had started in 1949. She had over 10 operations for kidney stones, and was receiving government disability payments for an inoperable, terminal, kidney condition. She attributes the cure of this kidney trouble entirely to the asparagus treatment.

 

I was not surprised at this result as `The elements of materia medica', edited in 1854 by a Professor at the University of Pennsylvania , stated that asparagus was used as a popular remedy for kidney stones. He even referred to experiments, in 1739, on the power of asparagus in dissolving stones. Note the dates!
  

We would have other case histories but the medical establishment has interfered with our obtaining some of the records. I am therefore appealing to readers to spread this good news and help us to gather a large number of case histories that will overwhelm the medical skeptics about this unbelievably simple and natural remedy.

 

For the treatment, asparagus should be cooked before using. Fresh or canned asparagus can be used. I have corresponded with the two leading canners of asparagus, Giant and Stokely, and I am satisfied that these brands contain no pesticides or preservatives.


Place the cooked asparagus in a blender and liquefy to make a puree. Store in the refrigerator. Give the patient 4 full tablespoons twice daily, morning and evening.

Patients usually show some improvement in 2-4 weeks.
It can be diluted with water and used as a cold or hot drink.
This suggested dosage is based on present experience, but certainly larger amounts can do no harm and may be needed in some cases.

 

As a biochemist I am convinced of the old saying that `what cures can prevent.' Based on this theory, my wife and I have been using asparagus puree as a beverage with our meals. We take 2 tablespoons diluted in water to suit our taste with breakfast and with dinner.  I take mine hot and my wife prefers hers cold.

For years we have made it a practice to have blood surveys taken as part of our regular checkups.

 

The last blood survey, taken by a medical doctor who specializes in the nutritional approach to health, showed substantial improvements in all categories over the last one, and we can attribute these improvements to nothing but the asparagus drink.

As a biochemist, I have made an extensive study of all aspects of cancer, and all of the proposed cures. As a result, I am convinced that asparagus fits in better with the latest theories about cancer.

 

Asparagus contains a good supply of protein called histones, which are believed to be active in controlling cell growth. For that reason, I believe asparagus can be said to contain a substance that I call cell growth normalizer. That accounts for its action on cancer and in acting as a general body tonic In any event, regardless of theory, asparagus used as we suggest, is a harmless substance. The FDA cannot prevent you from using it and it may do you much good. It has been reported by the US National Cancer Institute, that  asparagus is the highest tested food containing glutathione, which is considered one of the body's most potent anticarcinogens and antioxidants.

 

Just a side note... In case you are wondering why this has not been made public, there is no profit in curing cancer!

 

Please send this article to everyone in your Address Book. The most unselfish act one can ever do is paying forward all the kindness one has received.

 

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DRT Solutions Weekly Mail – 294th Issue dated 27th December ’13

All Weekly mails right from 1st Issue to latest, click links on top of this page

 


 

(1) Supreme Court Stays Operation of Last Amendment to Securitization Act in respect of Multi-state Co-operative Banks

 

Mr Sanjay Jain, one of our clients from Nagpur and Mr Bharat Gandhi, Lawyer,(AOR) Supreme Court of India  have informed that in the matter of M/s Unistar Forging Pvt Ltd vide WP (Civil) No 1007 of 2013, the Supreme Court in its order dated 03.12.13 has stayed the operation of the Securitization Act with reference to the said Writ Petition which pertained to the last amendment to the Act. Thus specific stay can be obtained accordingly.

Our Comment

 

The legal provisions relating to the Co-operative Banks have been under judicial review with the Supreme Court since 1965. Accordingly few amendments were issued by the Central Govt from time to time. Subsequently few of the said amendments were also became questionable. The matter has a whole relating to the Co-operative Banks has become complex due to involvement of two agencies viz the State Govt and RBI which obviously will take considerable time to determine, to sort out and to lay down appropriate legal provisions.


 

(2) Delay in Implementation of National Litigation Policy

 

The following news item is self explanatory:-

Delay in implementation of National Litigation Policy deplored

http://www.thehindu.com/news/national/other-states/delay-in-implementation-of-national-litigation-policy-deplored/article5494686.ece?homepage=true

Three years after the National Litigation Policy was announced, a Shajapur-based former trade unionist has found that the Centre has not moved an inch to implement it. Kantilal Bafana, the 76-year-old former Secretary-General of the All-India Census Employees Association, fought a year-long battle with the Law Ministry to find out what had become of the National Litigation Policy.

The policy is aimed at reducing pendency of cases and puts checks on government litigation which form the bulk of pending cases. For example, it calls upon government departments not to file appeals in service matters relating to an individual’s grievance or if the matter does not set a precedent. The policy was announced by the former Law Minister, Veerappa Moily, in June, 2010.

The Central Agency Section and the Department of Legal Affairs did not respond to Mr. Bafana’s Right to Information request, filed in July, 2012, and passed the buck within the Law Ministry. Finally, after an order of the Central Information Commission in September this year, the Law Ministry responded that its RTI Cell had been shifted thrice and Mr. Bafana’s file was not traceable.

The Department of Legal Affairs, in its reply, a copy of which is with The-Hindu, said: “... no other circulars have been issued on the subject and the said policy is not yet approved by the Government.”

As of May, the Madhya Pradesh High Court has more than 2.5 lakh cases pending and the Supreme Court as of November has more than 65,000 cases.

In a research paper titled “The Indian Supreme Court by Numbers,” Nick Robinson — a visiting fellow at the Centre for Policy Research at Azim Premji University, Bangalore, found that appeals against statutory bodies had gone up by 475 per cent between 2005 and 2010. His analysis of pendency data of the SC found that tax, company law, mining and public interest litigation cases took the longest to resolve. Also, cases from Punjab and Haryana, Uttaranchal and Himachal Pradesh High Courts, all 400 km from Delhi, are more likely to end up in the SC than cases from other HCs.

Mr. Bafana told this newspaper: “Hundreds of government employees waste their savings unnecessarily running to courts. Crores of public money is wasted on unnecessary litigation. The government not even issued a circular in three years is proof that it wants this wastage and harassment to continue,” he said.

(3) 3.14 Crore Cases Pending

 

The following news item is self explanatory:-

3.14 crore cases pending in the country'

New Delhi: Dec 21, 2013 DHNS

http://www.deccanherald.com/content/376074/039314-crore-cases-pending-country039.html

At least 3.14 crore cases are pending in courts, including the Supreme Court, in the country and Uttar Pradesh tops the list for pendency in lower and high court according to statistics released by the government.

Around 2.69 crore cases are pending in lower courts in India while 44.43 lakh are pending in 21 high courts across the country as on 2012, the Law Ministry informed the Lok Sabha last Thursday. The Supreme Court has 65,661 cases pending as on December 1 this year.

A document on National Court Management Systems (NCMS) released last year by the then chief justice has said that India has one of the largest judicial systems in the world with over three crores  cases and sanctioned strength of some 16,000 judges. It said by 2040, there could be around 15 crore cases in Indian courts.


 

“It is estimated that the number of judges/courts expanded six fold while the number of cases expanded by double that number – twelve fold. The judicial system is set to continue to expand significantly over the next three decades, rising, by the most conservative estimate, to at least about 15 crores cases requiring at least some 75,000 courts/judges,” the document said.

The Supreme Court and high courts maintain the data of pendency of cases.

Union Law Minister Kapil Sibal had said in Parliament that the delay in the disposal of cases affects all sections of society. In order to expedite the trial of court cases, he said, the legislative changes have been made in procedural laws, which include provisions for limiting adjournments of court proceedings in criminal and civil matters.

In lower courts, the highest number of pending cases is in Uttar Pradesh, which has 57.92 lakh in 2012, according to latest figures available with the government. The Allahabad High Court has the highest number of pending cases at 10.08 lakh followed by the Madras High Court, which has five lakh pending cases.

Sikkim has interesting figures as it has 63 pending cases last year while it disposed of 126 cases. It had 67 pending cases in 2011 while it disposed of 119. In 2010, Sikkim disposed of 138 cases leaving just 45 undecided.

An analysis of pending cases shows that over the years the numbers are increasing though the number of cases finalised also increased. 

The number of pending cases in 2010 was 42.29 lakh and it increased to 43.22 lakh the next year and to 44.34 lakh last year.

 

(3) Despite 1000 Fast Track Courts, 3.2 Crore Cases still Pending

 

The following news item is also relevant and self explanatory:-

Despite 1,000 Fast Track Courts, 32 Millions Cases Still Pending

By IANS - NEW DELHI

Published: 23rd December 2013 03:49 PM

Last Updated: 23rd December 2013 03:49 PM

http://www.newindianexpress.com/nation/Despite-1000-Fast-Track-Courts-32-Millions-Cases-Still-Pending/2013/12/23/article1961278.ece

India's over 1,000 fast track courts, set up for moving the wheels of justice faster, have decided more than 3.2 million cases in the past 11 years, but a whopping 32 million cases are still pending, according to available official data.
Law and Justice Minister Kapil Sibal said in the Lok Sabha that a total of 3,292,785 cases were disposed of by the 1,192 Fast Track Courts (FTCs) till March 2011. He said there are more than 32 million pending cases in high courts and subordinate courts across the country.
Leading the chart of cases tackled, Gujarat's 61 fast track courts disposed of 434,296 cases, followed by 153 courts in Uttar Pradesh which decided 411,658 cases. Maharashtra's 51 courts concluded hearing of 381,619 cases while 84 courts in Madhya Pradesh decided 317,363 cases and 49 courts of Tamil Nadu heard 371,336 cases.
During the time of central funding of fast-track courts, between 2000 to 2011, Bihar ran the maximum number of such courts, 179. This also resulted in the disposal of a large number of pending cases in the state -- 159,105 cases till March 2011.
Sibal told the Lok Sabha that FTCs were set up to handle long pending cases on the recommendation of the Eleventh Finance Commission from year 2000.
As per December 2012, there are at least 27.6 million cases pending in subordinate courts while 4.4 million are pending in various high courts.
Retired Delhi High Court judge Justice S.N. Dhingra said the government must "appoint more judges" to try the pending cases. Dhingra told IANS that such courts were established for "clearing the massive backlog in court cases on a priority basis".
"Fast track courts, which are meant to expeditiously clear the colossal scale of pendency in the district and subordinate courts in a time-bound manner, are suffering due to staff crunch," he added.
For speedy disposal of cases, the central government had released funds directly to state governments. An amount of Rs.870 crore was allocated to state governments from 2000-01 to 2010-11, Sibal said.
The highest funding was granted to Uttar Pradesh, at Rs.136 crore while Bihar was given Rs.93 crore.
The funds were sanctioned to states as "upgradation grant for judicial administration" for the 11-year period.
Senior advocate Sushil Kumar feels that one of the reasons for high pendency is "public prosecutors are overburdened". With too many cases one cannot give sufficient time to every case, Kumar told IANS.
Kumar recommended that the government appoint more public prosecutors.
He said most of the cases are progressing at a snail's pace for want of public prosecutors.
"Sometimes a single prosecutor has to appear in two or more cases that are being listed at the same time in different courts. Due to one case the other case suffers," Kumar told IANS.
The government discontinued the fast-track courts scheme on March 31, 2011, after running it for over 11 years.
However, some states have continued FTCs with their own expenditure, Sibal told the Lok Sabha.
A total of 701 fast track courts are working under the funds released by state governments, while 183 courts are functioning in Bihar and 100 courts are working in Maharashtra (till Dec 2012), law ministry said.
Sibal said necessary steps should be taken to establish a suitable number of FTCs to hear "offences against women, children, differently abled people, senior citizens and marginalised sections" of society.
The Supreme Court upheld April 19, 2012, the government's policy to stop funding fast-track courts, which were created a decade ago to speed up trial in pending cases.
The apex court had also directed the centre and states to create 10 percent additional posts in the lower judiciary.

(4) Lead a Good Life 

Mr Firoz Poonawalla has sent the following useful piece:-

Lead a good life.

Did You Know?

1.      Your shoes are the first thing
people subconsciously notice about
you. Wear nice shoes.
2. If you sit for more than 11 hours a
day, there's a 50% chance you'll die
within the next 3 years
3. There are at least 6 people in the
world who look exactly like you.
There's a 9% chance that you'll meet
one of them in your lifetime.
4. Sleeping without a pillow reduces
back pain and keeps your spine
stronger.
5. A person’s height is determined by
their father, and their weight is
determined by their mother.
6. If a part of your body "falls asleep",
you can almost always "wake it up"
by shaking your head.
7. There are three things the human
brain cannot resist noticing - Food,
attractive people and danger
8. Right-handed people tend to chew
food on their right side
9. Putting dry tea bags in gym bags
or smelly shoes will absorb the
unpleasant odour.
10. According to Albert Einstein, if
honey bees were to disappear from
earth, humans would be dead within 4
years.
11. There are so many kind of apples,
that if you ate a new one everyday, it
would take over 20 years to try them
all.
12. You can survive without eating for
weeks, but you will only live 11 days
without sleeping.
13. People who laugh a lot are
healthier than those who don’t.
14. Laziness and inactivity kills just
as many people as smoking.
15. A human brain has a capacity to
store 5 times as much information as
Wikipedia
16. Our brain uses same amount
power as 10-watt light bulb!!
17. Our body gives enough heat in 30
mins to boil 1.5 litres of water!!
18. The Ovum egg is the largest cell
and the sperm is the smallest cell !!
19. Stomach acid (conc. HCl) is
strong enough to dissolve razor
blades
20. Take a 10-30 minute walk every
day. & while you walk, SMILE. It is the
ultimate antidepressant.
21. Sit in silence for at least 10
minutes each day.
22. When you wake up in the
morning, Pray to ask God's guidance
for your purpose, today.
23. Eat more foods that grow on trees
and plants and eat less food that is
manufactured in plants.
24. Drink green tea and plenty of
water. Eat blueberries, broccoli, and
almonds.
25. Try to make at least three people
smile each day.
26. Don't waste your precious energy
on gossip, energy vampires, issues of
the past, negative thoughts or things
you cannot control. Instead invest
your energy in the positive present
moment.
27. Eat breakfast like a king, lunch
like a prince and dinner like a college
kid with a maxed out charge card.
28. Life isn't fair, but it's still good.
29. Life is too short to waste time
hating anyone. Forgive them for
everything !
30. Don't take yourself so seriously.
No one else does.
31. You don't have to win every
argument. Agree to disagree.
32. Make peace with your past so it
won't spoil the present.
33. Don't compare your life to others.
You have no idea what their journey
is all about.
34. No one is in charge of your
happiness except you.
35. Frame every so-called disaster
with these words: 'In five years, will
this matter?'
36. Help the needy,Be generous ! Be a
'Giver' not a 'Taker'
37. What other people think of you is
none of your business.
38. Time heals everything.
39. However good or bad a situation
is, it will change.
40. Your job won't take care of you
when you are sick. Your friends will.
Stay in touch.
41. Envy is a waste of time. You
already have all you need.
42. Each night before you go to
bed ,Pray to God and Be thankful for
what you'll accomplish, today !
43. Remember that you are too
blessed to be stressed.

--------------------------------------------------------------------------------------------------------------------------------

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DRT Solutions Weekly Mail – 293rd Issue dated 20th December ’13

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) DRAT Delhi allows SA Amendment to include Loss & Damages

 

SA amendment prepared by us in respect of one of our clients from Bhatinda was dismissed by the DRT Chandigarh. On appeal the same was permitted by the DRAT Delhi in the matter of Raj & Co vs Authorised Officer, SBI vide citation 2013 (2) DRTC 737. The DRAT stated that it is well settled principle of law that while considering an application for amendment the Court cannot go into the merits of such amendment and the delay in filing the amendment application cannot stand in the way of allowing the prayer for amendment if it passes other tests for allowing such amendment. 
 

(2) Bank Officers to Pay Costs of Rs 1 lac for not taking due Care in Conducting the Auction

 

In the matter of ‘Rekha Sahu vs UCO Bank vide citation 2013 (2) DRTC 637, the Allahabad High Court stated that -  

“ it is clear that the secured creditor does not enjoy the immunity in respect of his action if it is not bona fide. Chief Manager level officer is chosen because with rich experience and maturity of mind he will be able to take action with due care and caution in view of the stringent nature of the provisions of the Act. On account of lapses in not mentioning the encumbrances in the property in the public notice, the auction purchaser suffered and accordingly the Bank is directed to pay the cost of Rs. 1,00,000/- which shall be paid to the Petitioner. The Bank shall also pay municipalities tax and electrical charges which were outstanding against the property till the date of issuance of the sale certificate together with interest/penalty. It will be open for the Bank to realize the cost from the officers who participated in the auction proceedings and were not vigilant towards their duties.”  

 

(3) SC Registry Officials held Guilty of Corruption Charges

 

The following news item is self explanatory. The Registry even in SC is a stumbling block to efficiency as well as Corrupt Practices and is resisting online automation. Until and unless all the systems and procedures in courts including the SC are studied by Professional System Analysts and not the legal personals, proper improvements cannot be achieved.  

Saha case: SC registry officials held guilty of graft charge

www.A.com/news/saha-case-sc-registry-officials-held-guilty-of-graft-charge/1207478/

Less than two months after the Supreme Court awarded its highest ever compensation to an NRI doctor in a medical negligence case, two of its officials were convicted by a city court for demanding bribes from the doctor.

In October this year, a US-based AIDS researcher, Kunal Saha, was awarded a record compensation of Rs. 5.96 crore for the medical negligence of a set of doctors in AMRI hospital, Calcutta, which led to the death of his wife in 1998.

In 2002, Saha had filed a criminal case against the doctors and the trial court had convicted them.

However, the doctors appealed and were acquitted by the Calcutta High Court. Saha then took the matter to the Supreme Court in 2004. But the appeal could not get listed for final hearing for the next four years.

Saha then came to India in January 2009 and announced that he would go on an indefinite hunger strike at Jantar Mantar to protest against the delay in the listing of his matter. However, his lawyer informed him that two of the officials from the apex court's registry had agreed to get the matter listed within 3-4 weeks if they were paid Rs 75,000.

Saha complained to the CBI and the two officials, K S Badrinathan and C Perumal, were caught red-handed by the CBI, which had set a trap to nab them.

On December 3, Special CBI Judge Dinesh Kumar Sharma convicted the two on charges of corruption and criminal conspiracy and sentenced Badrinathan to a two-year-term along with a fine of Rs 5000. Perumal was given three years in jail and a fine of Rs 12,000 was imposed on him.

"If this country has to progress, the corruption has to be dealt with a tough hand and this court is of the firm view that in corruption cases, there is no scope for having a lenient view.... The convicts before this court being the employees of the highest court of this land, deserves appropriate punishment so that message must go to the officials working in the superior courts that any tampering with the administration of justice may cause dearly," Judge Sharma held.

The court was also suspicions that Saha's lawyer R Venkataram had "in cahoots with certain persons in registry... scripted a drama to extort the money from the complainant".

But the CBI did not press charges against Venkataram, who according to the prosecution, was the "kingpin of the entire episode".

The court pulled up the CBI for lacunae in their investigation. "The role of Shri R Venkatraman was quite suspicious but it seems that CBI only half heartedly chargesheeted him and failed to collect any evidence...," the court held.

(4) RBI Paper on Early NPA Recognition

Mr Himanshu Mehta, one of our clients are Mumbai has sent the following useful news item:-

RBI paper on early NPA recognition likely; bankers view

Moneycontrol > News > Business Dec 17, 2013, 11.53 AM IST

RBI paper on early NPA recognition likely; bankers view

The discussion paper is expected to include early recognition of bad loans and their resolution. It is even likely to propose a timeline for the recovery process.

Soundara Kumar, deputy MD-Stressed Assets Management, SBI - I feel there is possibility of some kind of incentive in terms of risk capital allocation which the bank will have to do on loan assets if they identify the NPAs earlier.

Soundara Kumar deputy MD-Stressed Assets Management SBI - The Reserve Bank (RBI) is likely to release a discussion paper on banks’ non-performing assets (NPAs) later in the day. The paper is expected to include ways for early recognition of NPAs, their resolution and is even likely to propose a timeline for the recovery process. RBI is likely to highlight issues on asset sale to ARCs (asset restructuring companies). The paper will deal with non-CDR (corporate debt restructuring) cases. The key focus points are likely to be – asking banks to take a call upfront when loan servicing become overdue, and whether the business is viable or not. “Incentivising could even be on early recognition of NPAs. Banks prefer objective approach to subjective to recognise NPAs. The market views restructured assets as part of the stressed assets. It is difficult to say what the RBI norms will be about, but it should be oriented more towards viability,” said P Sitaram, CFO, IDBI Bank , on CNBC-TV18. Banks’ average gross NPAs for September 2013 stood at 4.25 percent. PSU banks accounted for 86% of total NPAs. Speaking about preventing emergence of bad loans, Soundara Kumar, Deputy MD-Stressed Assets Management, SBI , said all banks should adopt a system that would help early detection of a default. Below is the edited transcript of Soundara Kumar and P Sitaram interview on CNBC-TV18

Q: Is it possible to have early recognition of non-performing loans (NPL)? Since you have been in this business for so long, do you get signs like bounce cheques or companies coming and asking for money too often? Is early recognition of NPLs possible?

Kumar: Absolutely. We do have a system where the computer system identifies NPAs, but that is based on a quantitative basis -- based on the irregularities in the account or non-payment of interest and other things. But it is possible through early warning signal system which the banks can put in place, which we are also working on; right now it is a manual thing, we want to move to a technology platform. The bouncing of cheques, frequent requests for irregularities in the account, devolvement of letter of credits (LC), invocation of guarantees and certain external factors like frequent movement of the finance personnel in the company, the change of audit firms, change in the balance sheet date - even these things should be tracked which is what we are working on, which is now done manually. It is absolutely possible and this should be done, because the earliest signs of stress would not be the quantitative factors, but the qualitative ones which are affecting the industry as well as the unit.

Q: If you agree with Mrs. Kumar that you can recognise NPLs earlier, it kind of begs the question why banks are not doing it already, why should it be coming from the RBI. What incentives can RBI offer?

Sitaram: In India so far we have been following certain objective set of criteria for identification of NPAs. The alternate approach could be a subjective criteria where the bank looks at a host of circumstances and decides whether an asset is performing or not, but this can be subjective. As a country we have avoided a subjective approach and so far we have taken an objective approach and for that we have gradually reduced timing to 90 days. If you look at it from another perspective, this whole question of earlier recognition of NPA, which is in some way linked to the restructuring regime introduced since 2008, probably RBI could also be saying that you do not go ahead with restructuring just because you want to save an NPA. You look at restructuring more on a fundamental basis, that is whether the liability is there or not and on a close look if you feel that there is more probability and that the viability is not established then we better recognise it as NPA. That could also be under interpretation of early recognition of NPA and for that they could perhaps be thinking of some sort of incentivisation. It is not necessarily that they will shorten the period of 90 days or introduce other criteria for identification of NPAs.

Q: What will this eventually do to the NPA situation - will it rise or will it fall? Banks’ average NPAs stand at more than 4 percent in the September quarter versus about 3 percent a year ago. What will this actually do to the NPA situation?

Sitaram: If you look at it from an analyst perspective or from a market’s perspective the bank’s balance sheet has been looked at as a combination of the restructured assets as well as the gross NPA on its books. So to that extent market has already taken into account that the restructured assets to some extent represent a part of the stressed assets of the balance sheets and they have been aggregating it along with NPAs. So now whether out of these restructured assets some assets are early recognised as NPAs instead of being put through the process of restructuring or not is the question. So overall, yes, if we look at that banks will incentivise to not restructure but recognise more NPAs, the gross NPAs reported would go up, but to that extent I think the restructured assets will come down.

Q: So you do not expect the markets will punish bank stocks too much, is that your guess?

Sitaram: Yes, I think the aggregate is anyway being looked at.

Q: Instead of us trying to outguess what the RBI might say later today or tomorrow what is your guess when the RBI tells you that they want to incentivise early recognition of NPLs. What are you expecting to hear from them?

Kumar: I need to clarify a little more on what we talked earlier about. The early warning signals would only show you the stress in the system; that does not mean the account is already an NPA. I think this is something we need to keep in mind. The stress is first seen and then you decide on whether you want to restructure the account or not depending on the viability of the project. What RBI would do, whether I want to guess before the discussion paper is out, the governor has in his speech mentioned about forming a committee which would look at whether a restructuring is required in the first place and a call would be taking and speeding up of the restructuring process. Today, typically if you look at the corporate debt restructuring (CDR) process, it takes anywhere between 6 and 9 months before the entire process gets completed. So I think there will be some incentivisation for speeding up the whole process of restructuring, ensuring that the viability of the unit is properly established. I think that is something they maybe doing. I feel that maybe there is possibility of some kind of incentive in terms of risk capital allocation which the bank will have to do on loan assets if they identify the NPAs earlier, because when an account becomes NPA there is a higher provision. So there is lesser risk capital allocation. If risk weights are reduced then maybe there we could get some benefit, but I am just guessing so and we really need to wait for the discussion paper to come and then see what really comes out.

Q: Do you reckon the RBI could propose a timeline for the recovery of NPAs and if yes what could the impact be?

Sitaram: As I said it is very difficult to say exactly what the RBI discussion paper will be all about. I do not know whether the 90-day norm will now be tweaked or whether they will be looking at restructuring. It should be more oriented towards viability and the less viable should be recognised as NPA. If you look at the other point which has been made on the risk-weighted assets, banks maintain capital on the risk-weighted assets based on the external ratings and where external ratings are not available they go by the unrated exposure, but through Pillar II again, we maintain additional capital based on the inherent weaknesses of these assets. So to that extent, capital is already being maintained on stressed assets whether they are coming through the restructured route or through the NPA route. The question is now whether RBI will do something on that to incentivise banks to recognise assets faster as NPAs rather than put them through the restructuring.

Q: What is the sense? Is the stress ebbing at all for the economy? Should for the system and for State Bank of India ( SBI ) the next NPL number look a little lower than the previous, these rules staying as they are?

Kumar: I do not think I would give any future predictions like that. You have seen our Q2 numbers in terms of slippages were much better than Q1. This is mainly because of our ability to restore last ground on the retail banking side. It is just effort elastic that we are continuing. We are continuing to recover more, upgrade more. The mid-corporate type of accounts and the corporate type of accounts, yes the stress is there, so I would not want to guess any numbers there, but yes overall stress continues. Whether it will be better than Q2 or not I am not in a position to comment on.

Read more at: http://www.moneycontrol.com/news/economy/rbi-paperearly-npa-recognition-likely-bankers-view_1009464.html?utm_source=twitterfeed&utm_medium=twitter
 

Our Comments

The discussion paper by RBI is contained on its web site vide link:-

http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=715

Discussion Paper on Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy

 

(5) Ever Wonder Why?

Mr Firoz Poonawalla has sent the following interesting information:-

Ever Wonder Why?

 Q: Why do men's clothes have buttons on the right while women’s clothes have buttons on the left? 

A: When buttons were invented, they were very expensive and worn primarily by the rich. Since most people are right-handed, it is easier to push buttons on the right through holes on the left. Because wealthy women were dressed by maids, dressmakers put the buttons on the maid's right! And that's where women's buttons have remained since. 

Q: Why do ships and aircraft use ‘mayday’ as their call for help? 

A: This comes from the French word m'aidez -- meaning 'help me' -- and is pronounced, approximately, 'mayday.'

Q: Why are zero scores in tennis called 'love'? 

A: In  France , where tennis became popular, round zero on the scoreboard looked like an egg and was called 'l'oeuf,' which is French for 'egg.' When tennis was introduced in the  US , Americans (mis)pronounced it 'love.'

Q. Why do X's at the end of a letter signify kisses? 

A: In the Middle Ages, when many people were unable to read or write, documents were often signed using an X. Kissing the X represented an oath to fulfill obligations specified in the document. The X and the kiss eventually became synonymous.

Q: Why is shifting responsibility to someone else called 'passing the buck'? 

A: In card games, it was once customary to pass an item, called a buck, from player to player to indicate whose turn it was to deal. If a player did not wish to assume the responsibility of dealing, he would 'pass the buck' to the next player.

Q: Why do people clink their glasses before drinking a toast? 

A: It used to be common for someone to try to kill an enemy by offering him a poisoned drink. To prove to a guest that a drink was safe, it became customary for a guest to pour a small amount of his drink into the glass of the host. Both men would drink it simultaneously. When a guest trusted his host, he would only touch or clink the host's glass with his own.

Q: Why is someone who is feeling great 'on cloud nine'? 

A: Types of clouds are numbered according to the altitudes they attain, with nine being the highest cloud if someone is said to be on cloud nine, that person is floating well above worldly cares.
Q: in golf, where did the term ‘Caddie’ come from? 

A. When Mary Queen of Scots went to France as a young girl, Louis, King of France, learned that she loved the Scots game 'golf.' So he had the first course outside of  Scotland built for her enjoyment. To make sure she was properly chaperoned (and guarded) while she played, Louis hired cadets from a military school to accompany her. Mary liked this a lot and when returning to  Scotland (not a very good idea in the long run), she took the practice with her. In French, the word cadet is pronounced 'ca-day' and the Scots changed it into 'caddie.'

Q: Did you ever wonder why dimes, quarters and half dollars have notches (milling), while pennies and nickels do not? 

A: The  US Mint began putting notches on the edges of coins containing gold and silver to discourage holders from shaving off small quantities of the precious metals. Dimes, quarters and half dollars are notched because they used to contain silver. Pennies and nickels aren't notched because the metals they contain are not valuable enough to shave.

Q: Why are many coin banks shaped like pigs? 

A: Long ago, dishes and cookware in  Europe were made of dense orange clay called 'pygg.' When people saved coins in jars made of this clay, the jars became known as 'pygg banks.' When an English potter misunderstood the word, he made a container that resembled a pig. And it caught on.

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DRT Solutions Weekly Mail – 292nd Issue dated 13th December ’13

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) Oral Arguments in DRTs – Problems faced by Advocates

 

One of our clients from Chandigarh during course of Oral Arguments before the Magistrate observed the following:-

(a)   The Magistrate did not want to listen to the Oral Arguments.

(b)   The Borrower’s Advocate cut short his Oral Argument.

(c)   The Magistrate issued the Order immediately.

(d)   When the matter was discussed with the Advocate, he said that such instances happen quite often in DRTs also and he did not have any solution except filing Appeal.

Our Suggestion

 

The following facts and circumstances are to be kept in view:-

(a)   The litigant borrowers are paying huge court fees such as Rs 1 lac in SA and Rs 1.5 lac for counter-claim in DRT. Further the banks are paying Rs. 1.5 lac in OA which they are debiting to the borrower’s account. As per our Constitution and as laid down in several SC Judgment, the citizen litigant is entitled for complete justice. Hence the DRT Judges and Magistrates are duty bound to listen to the Oral Arguments of the Borrower’s Advocate.

(b)    They are also paying the desired professional fees to their advocates. Hence the Advocates are duty bound to their part in best possible manner as outlined below.

(c)   If the Magistrates and Judges do not listen properly to the Oral Arguments, the Advocate should submit the following:-

(i)            If you are not prepared to listen, please permit me to submit detailed Written Argument within 2 to 3 days.

(ii)           The points pressed in the said written arguments are to dealt with with reasons in the ensuing order. In this connection the relevant SC Judgment to be cited e.g. Mohd Akram Ansari vs Chief Election Officer, 2008(2) SCC 95 ( We have given the full text of this judgment on our web site with comments and important portion marked in Red vide link http://www.drtsolutions.com/Points-Pressed.htm ) When the order is issued and if the points pressed in the oral or written arguments are not covered in the order, an application be submitted to deal with those points. If despite such application, the points are not covered, Review Application be filed.

(iii)         Just after filing Review, Appeal be filed.

(iv)          The above steps are to be repeated in the Review and Appeal.

(v)           Despite above if there is no change in the attitude of the Magistrate and Judge, the matter to be brought before the DRAT and High Court.

(vi)          The litigant Borrowers are advised to apprise their advocates with the above. It will be better if such arguments are rehearsed before the Borrower much before the Arguments so that necessary papers and SC Judgments are kept ready and written arguments, Review and Appeal are made in time.

(vii)        Once the Advocates take up this issue as a challenge, and If there is concerted efforts by the Borrowers and Advocates, the tendency of the Magistrate and Judges will change.

(viii)       One of our clients and a Senior Advocate commented that the Judges are heavily overloaded and they don’t have time to listen to the Oral Arguments properly. But this is no reason to cause injustice or order physical possession without hearing the Advocate. It is high time that entire Oral Arguments be video recorded so that the behavior of the Judges and performance of the Advocates are available to the litigants.

(2) Gujrat High Court sets aside the Order of the Magistrate u/s 14

 

One of our clients from Ahemdabad sent copy of the order of the Gujrat High Court setting aside the order of the Magistrate u/s 14. In the said order the High Court found that the Bank has not furnished the Affidavit properly as per the last amendment of Sec 14 and therefore the order issued by the Magistrate was set aside. The particulars of the said High Court order are ‘Manjudevi R Somani vs Union of India decided on 25.11.13

 

This judgment has validated our approach mentioned in our past weekly mails pertaining to sec 14, wherein we had pointed out that the Affidavit furnished by the bank be thoroughly examined in respect of the nine points mentioned in the Amendment and correct facts be submitted before the Magistrate. In fact it will be very difficult to comply with all the points. Our clients have started following up our approach right from the stage of including relevant facts in the Representation and Objections to notice u/s 13(2), issue of caveats, liaison with the office of the Magistrate, Review and Appeal etc.

 

(3) God’s Accuracy - Beautiful

 

Mr Firoz Poonawallas has sent the following interesting information:-

God’s Accuracy - Beautiful

When GOD solves our problems, we have faith in HIS abilities; 
When GOD doesn't solve our problems HE has faith in our abilities.
=============================
God's accuracy may be observed in the hatching of eggs. . 
-those of the canary in 14 days;
-those of the barnyard hen in 21 days;
-eggs of ducks and geese in 28 days;
-those of the mallard in 35 days;
-The eggs of the parrot and the ostrich hatch in 42 days.

(Notice, they are all divisible by seven, the number of days in a week!)
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God's wisdom is seen in the making of an elephant. The four legs of this great beast all bend forward in the same direction. No other quadruped is so made. 

God planned that this animal would have a huge body, too large to live on two legs. For this reason He gave it four fulcrums so that it can rise from the ground easily.
The horse rises from the ground on its two front legs first. A cow rises from the ground with its two hind legs first. How wise the Lord is in all His works of creation!
====================================
-Each watermelon has an even number of stripes on the rind.
-Each orange has an even number of segments.
-Each ear of corn has an even number of rows.
-Each stalk of wheat has an even number of grains.
-Every bunch of bananas has on its lowest row an even number of bananas, and each row decreases by one, so that one row has an even number and the next row an odd number. Amazing!
======================================
-The waves of the sea roll in on shore twenty-six to the minute in all kinds of weather.
-All grains are found in even numbers on the stalks. 
================================
God has caused the flowers to blossom at certain specified times during the day. Linnaeus, the great botanist, once said that if he had a conservatory containing the right kind of soil, 

moisture and temperature, he could tell the time of day or night by the flowers that were open and those that were closed!
==========================================
The lives of each of us may be ordered by the Lord in a beautiful way for His glory, if we will only entrust Him with 0ur life. If we try to regulate our own life, it will only be a mess and a failure. 

Only God, who made our brain and heart, can successfully guide them to a profitable end.
========================================
I Pray God Bless You In Ways You Never Even Dreamed. I didn't think twice about forwarding this one.

When you carry "the Bible", “Geeta”, “Quran” “Guru Granth Sahib” and/or any of God’s Books, Satan has a headache; when you open it, he collapses; when he sees you reading it, 

he loses his strength, and when you stand on the Word of God, Satan can't hurt you! And did you also know... that when you are about to forward this email to others, 
the devil will probably try to discourage you, but do it anyway.
================================================
Life without God is like an unsharpened pencil - it has no point.

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DRT Solutions Weekly Mail – 291st Issue dated 6th December ’13

All Weekly mails right from 1st Issue to latest, click links on top of this page

 

(1) DRT Litigant Borrowers should help each other

 

Recently one of our new clients desired to ascertain the local court and procedure pertaining to Sec 14 of the Act. He approached the local industrialist who had undergone the process and whose case was pending with the DRT. Instead of furnishing the desired details, the said industrialist proposed something else. We feel that litigant borrowers should help each other so that the new litigants are benefitted from the knowledge and experience of the older ones. With combined efforts as well as team work only, the borrower litigants will be able to secure leading judgments of the Apex Court. Such leading judgments will not only help the borrowers but also improve the banks. It is needless to mention that banks are already having a united front through Indian Banks Association. They are getting preferential support from Ministry of Finance which is not allowing transfer of the DRTs from the control of Ministry of Finance to Ministry of Law despite Supreme court 15 years old verdict. The Ministry of Finance is holding regular meetings with the DRT Judges which is highly against the principles of natural justice. Further the Ministry of Finance is appointing bank officials as DRT Judges and Recovery Officers who are inclined to favour the banks. Despite all these, the borrowers only demand fair and complete trial in DRT so that the counter-claims filed by them are also decided expeditiously. Under these facts and circumstances, the litigant borrowers should help each other. 


 

(2) India Gets Tough on ‘Wilful’ Default

 

Mr Himanshu Mehta, one of our clients from Mumbai has sent the following news item which is self explanatory:-


 

Nov 29, 2013, 09.14 AM IST

As bad loans mount, India gets tough on 'wilful' default 

Read more at: 
http://www.moneycontrol.com/news/business/as-bad-loans-mount-india-gets-tough39wilful39-default_999069.html?utm_source=ref_article

The prevalence of so-called "wilful" defaults is symptomatic of what critics say is a loose credit culture that plagues Asia's third-biggest economy, keeping underperforming companies in business, crowding out other borrowers and leaving taxpayers on the hook to recapitalise state banks.

Read more at: http://www.moneycontrol.com/news/business/as-bad-loans-mount-india-gets-tough39wilful39-default_999069.html?utm_source=ref_article

Kemrock Industries and Exports owns a golf course near its plant in western India and its chairman, Kalpesh Patel, talks of the high salaries he pays employees. Still, the company has defaulted on payments for about USD 250 million in loans and Patel's banks, frustrated that they are unable to seize assets as he fights them in court, say they want to declare him a "wilful defaulter", a fast-growing category in India as bad loans mount. Also Read: Stop lending to defaulting promoters, FinMin tells banks Patel firmly denies he is such a case, saying that the business has hit lean times but he is working to turn it around. The prevalence of so-called "wilful" defaults is symptomatic of what critics say is a loose credit culture that plagues Asia's third-biggest economy, keeping underperforming companies in business, crowding out other borrowers and leaving taxpayers on the hook to recapitalise state banks. The Reserve Bank of India defines a wilful defaulter as a borrower that is able but unwilling to pay, has diverted loan proceeds for other than their initially stated use, or has overstated profits in order to obtain a loan. Policymakers have voiced growing about the problem in recent months, and are urging banks to get tough. "In India, there is no stigma attached to defaulting on bank loans," said Sharad Bhatia, president, stressed assets management, at Axis Bank  Allahabad Bank  Allahabad Bank . "These are not small companies. They dig into money from their own company, and when we move to take charge of the assets they transfer it in the name of their friends or relative or get stay orders from courts." To declare a wilful default, a bank must set up a committee to hear the borrower's story. If it then determines the default is "wilful" it informs the central bank, which circulates a list of "wilful defaulters" to lenders nationwide. State lenders in particular are constrained from moving quickly to pursue dud loans by bureaucratic hurdles and a culture where it can be safer not to make a decision. Paltry legal fees - state banks pay just 40,000 rupees per corporate debt recovery - mean top lawyers have little incentive to take on cases that can drag for months or longer. Private sector banks pay many times more to ensure cases get resolved more quickly, lawyers said. "We need to become more nimble," said Arundhati Bhattacharya, chairwoman at State Bank of India, the country's largest lender. "It takes a long time to make decisions. The government is aware of it and we are trying to see what we can do about it." Kemrock Indus stock price On November 29, 2013, Kemrock Industries and Exports closed at Rs 16.90, up Rs 0.35, or 2.11 percent. The 52-week high of the share was Rs 110.65 and the 52-week low was Rs 14.90. The latest book value of the company is Rs 185.42 per share. At current value, the price-to-book value of the company was 0.09. 

Read more at: 
http://www.moneycontrol.com/news/business/as-bad-loans-mount-india-gets-tough39wilful39-default_999069.html?utm_source=ref_article


 

(3) Cute One – Modern Prayer 

 

Mr Firoz Poonawalla has sent the following cute prayer:-

 

TO:  God.Com 
Dear Lord,   
Every single evening 
As I'm lying here in bed, 
This tiny little Prayer 
Keeps running through my head: 

God bless all my family 
Wherever they may be,  
Keep them warm 
And safe from harm 
For they're so close to me. 

And God, there is one more thing  
I wish that you could do; 
Hope you don't mind me asking, 
Please bless my computer too. 

Now I know that it's unusual 
To Bless a motherboard, 
But listen just a second 
While I explain it to you, Lord. 

You see, that little metal box 
Holds more than odds and ends; 
Inside those small compartments  
Rest so many of my friends. 

I know so much about them 
By the kindness that they give, 
And this little scrap of metal 
Takes me in to where they live. 

By faith is how I know them 
Much the same as you. 
We share in what life brings us 
And from that our friendships grew.. 

Please take an extra minute  
From your duties up above, 
To bless those in my address book 
That's filled with so much love. 

Wherever else this prayer may reach 
To each and every friend, 
Bless each e-mail inbox 
And each person who hits 'send'. 

When you update your Heavenly list  
On your own Great CD-ROM,
Bless everyone who says this prayer 
Sent up to GOD.Com 

Amen 

    

DRT Legal Solutions

 

Attorneys at Law of Torts, Injury and IPR Claims

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E-mail - ramkishandrt@gmail.com and ramkishan@drtsolutions.com

Popularity of our web site :- The key word for search of our website is 'drt'  or any phrase commencing with 'drt'  We are on the top in Google Search for 'drt' among 28,60,000 results globally. In most of the search engines like yahoo, msn, google, excite, altavista, mamma, alexa etc., To verify, you may visit www.yahoo.com, www.msn.com, www.rediff.com, www.indiatimes.com, www.altavista.com, www.google.com, www.excite.com, www.hotbot.com, www.123india.com, www.aol.com, etc. Our reference appears in www.economictimes.com, www.amazon.comwww.financialexpress.com, www.lawcrawler.com, www.findlaw.com, www.law.com, www.supremecourtofindia.com, www.supremecourtonline.com

(2) We have created a separate web site www.usindolegal.com which deals exclusively with our US joint venture enterprise for activities like BPO, legal BPO, DRT etc. This site has started appearing in the search results of Google, Mamma, Alexa and Yahoo.

Application of Law of Torts in claiming Damages from Municipal Corporations for demolition of structures, closure of shops etc:- In many parts of the country, the Municipal Corporations are demolishing structures like shops and houses which existed for number of years. The shops existing for number of years are proposed to be shut down. The affected persons should claim Damages under the Law of Torts, which would be substantial. It is learnt that in Delhi itself about 5 lac shops are to be closed down and about 25 lac persons would be out of jobs. All these persons should file damage suits in the civil court. Since the damages would be substantial, the suits may be filed as Indigent Persons. Since the damages would attract interest, the usual delay by the civil courts will not affect the final outcome. The affected shop owners may discuss the details with us on phone.

Our Articles for Borrowers and Guarantors:- Our articles on DRT matters have been published in the Financial Express. The All India Manufacturers Organisation in its famous web site www.aimoindia.org has reproduced copies of our four articles. These original articles can be searched in the archive of the Financial Express in its web site www.financialexpress.com Two of these articles have been reproduced in other pages of this web site. 

Useful link www.WorldVideoBusiness.com :- WorldVideoBusiness-WVB® is a business to business e-marketplace source of international trade leads, and tender opportunities from companies and government organizations around the globe.

About Us in Brief :-  (1) We specialize in DRT (Debt Recovery Tribunal) and NCLT (National Company Law Tribunal) matters. As a whole you may approach us for all DRT Problems and Solutions as well as matters connected with ARCIL i.e. Asset Reconstruction Company (India) Limited,  We have a Joint Venture with an America based law firm for various activities like BPO, legal BPO and DRT. The details of the said American firm and the joint venture may be seen at the page - Our US Joint Venture with Anand Ahuja Associates or in www.usindolegal.com (2) For your all problems including those in DRT, please phone us or send e-mail. Please give your contact details along with your problems in brief. As a whole you may approach us for all DRT Problems and Solutions.  (2) With our Legal Opinion, you need not worry about the Securitisation Act or other DRT matters or NCLT. Please visit the page Products & Services and Frequently Asked Questions (3) On account of our expertise in the Law of Torts and Banking and experience past 15 years, we can help you to submit suitable defence with winning strategy in DRT cases, Securitisation Act, Guarantors' defence etc.  (4) We need only copies of all available documents  to render our expert 'Legal Opinion' which will be quite useful and valuable to you particularly in DRT i.e. Debt recovery Tribunal. (5) We have also handled assignments for preparation of damage claims against Electricity Boards, Insurance Companies, Municipal Corporations etc. all on the basis of the Law of Torts.  (6) The DRT counterclaims is to be prepared well in advance so that it could be raised at proper time in DRT or other forum to safeguard the securities and assets. (7) Several DRT counterclaims drafted by us are being handled by different advocates at DRT Mumbai, DRT Delhi, DRT Jabalpur etc. Thus DRT advocates are available in these cities. Cases in other Debt Recovery Tribunals are under process. (8) This site is updated monthly mostly on every first Monday of the month or for urgent release on any day with latest material. (9) For further details about us, please visit the page About Us-DRT Solutions As a whole you may approach us for all DRT Problems and Solutions. We hail from the place to which Maharishi Mahesh Yogi and Acharya Rajnish belong and hence this site is dedicated to them.

Our this web site is dedicated to Yoga Rishi Baba Ramdev Ji Maharaj:- Our this web site is respectfully dedicated to Yoga Rishi Baba Ramdev Ji Maharaj whose method of Pranayam has cured even incurable diseases and thus has revolutionized modern medical science. For further details please visit our special page by clicking here Baba Ramdev Ji Maharaj, Yoga Guru, Cure for All Diseases, Medical Science Revolution

Site also dedicated to:-   (1) Swami Ramdevji, Acharya Balkishan and their Guru Pradumn Maharaj.

                                             (2) H.H. Maharishi Mahesh Yogi and Acharya Rajnish, the greatest gurus of all time www.maharishi.com, www.osho.com

                                           (3) Shri Hira Ratan Manek (HRM) for his pioneering work on Solar healing vide his web site www.solarhealing.com and forum at www.lifemysteries.com                                    

We regularly practice TM and SCI of Maharishi Mahesh Yogi. We also regularly practice Hath Yoga including Pranayam based on Baba Ramdev Ji  Maharaj. We daily watch his global TV program on Astha Channel from 05:30 AM to 8AM and 8PM to 9PM Indian Standards Time. On Sanskar channel, we daily view the discourse of Pradumn Maharaj from 4 AM to 5:30 AM. Many chronic diseases such as Cancer, Parkinsons' disease, Polio, Asthma, Hypertension, diabetes etc. have been cured by the said method of Pranayam which can be learnt even by watching his program on TV. Since 30th March '06, we have started practicing Sun Gazing as prescribed by HRM.

                                    (3) Shri Satyanarayan Morya alias 'Babaji' for his praiseworthy service to our nation. Please visit his site www.artistbaba.com 

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