Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: due date for vat payment :: list of goods taxed at 4% :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: form 3cd :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: cpt
 
 
News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

Bench flays `extra constitutional' methods for bank loan recovery
June, 23rd 2007
Banks resorting to "extra constitutional" method, like engaging recovery agents, to recover dues from debtors could not be condoned, and the lender bank had ample power to seek recovery, the Madurai Bench of the Madras High Court has held.

Mr Justice K. Chandru, who heard the petition of Mr S. Ovuraj, a farmer, challenging seizure of his tractor and trailer by State Bank of India, Vilathikulam, Tuticorin district, quoted a Supreme Court order [2007(2) CTC 334] dealing with practice of multi-national banks in engaging recovery agents, and said the impugned action of the first respondent bank, "is shocking" inasmuch as owned by Central Government, the bank was also taking similar mode of recovery by engaging agents.

Stating that the allegation of petitioner was accepted, the judge observed that when petitioner had been deprived of his only property, which he obtained on a loan from bank, by "extra-constitutional method", could not be condoned.

The bank issued notice to petitioner for his default in payment of dues, and he expressed difficulty stating that he did not have money to pay back since there were no agricultural operations in the last two years. The bank had intimated him that it had appointed a recovery agent to take appropriate action including repossessing the vehicles as per terms of agreement signed by petitioner.

The petitioner alleged that vehicles were forcibly removed with help of police, despite his protest. On behalf of the bank, it was submitted that petitioner had voluntarily surrendered the vehicles. The bank said it had appointed a recovery agent as stipulated by the Reserve Bank of India. While allowing the petition, the judge directed the bank to return the tractor and trailer to petitioner within one week. This did not prevent bank from resorting to appropriate legal remedies to recover loan from petitioner, the judge ruled.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions