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In the instant case, it is not disputed that three drafts were issued by an NRI from Malaysia for the purchase of three flats. Out of three, one draft was for the sum of Rs. 5 lakhs dated 28.06.1996 and two drafts were for Rs. 3 lakhs & Rs. 6 lakhs dated 18.11.1996. It is also not disputed that the two drafts in question were issued in the name of “D-Cube Construction” and not in the name of “D-Cube Constructions (P) Ltd.” The Current Account No. 3600 was in the name of “D-Cube Constructions (P) Ltd.”, whereas the Current Account No. 4160 was opened on 15.02.1997 in the name of ...
The Chairman & Managing Director, City Union Bank Limited and Another v. R. Chandramohan
March 27, 2023
REED 2023 SC 03003
The civil appeals arise out of a challenge to the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions 2016.1 Issued by the Reserve Bank of India2, these directions were challenged before different High Courts primarily on the ground that no opportunity of being heard is envisaged to borrowers before classifying their accounts as fraudulent. The High Court of Telangana has held in the impugned judgment3 that the principles of natural justice must be read into the provisions of the Master Directions on Frauds. The decision has ...
State Bank of India and Others v. Rajesh Agarwal and Others
March 27, 2023
REED 2023 SC 03002
Approval of a resolution plan did not automatically discharge the personal guarantor of a corporate debtor from their liabilities under the guarantee contract.
In the present case, a writ petition was filed by a petitioner seeking to quash a demand notice issued by Rural Electrification Corporation Limited (REC Ltd.) on 09.12.2022, invoking the petitioner's personal guarantees for the outstanding debt of Rs. 1211.91 crores. The petitioner had acted as a personal guarantor for a loan taken by FACOR Power Ltd. from REC Ltd.
REC Ltd., being a state company under the Ministry of P...
Vineet Saraf v. Rural Electrification Corporation Limited
July 21, 2023
REED 2023 Del 07697
The petitioner's writ petition was dismissed as it sought the same reliefs already pursued through other proceedings, emphasizing the importance of utilizing established statutory remedies for debt recovery.
The petitioner, a guarantor to a loan taken by a borrower company, filed a petition under Article 226 of the Constitution of India, seeking various reliefs related to the loan and the actions taken by the respondent bank. The petitioner's main contentions were centered around the applicability of the Micro, Small and Medium Enterprises Development (MSMED) Act over the Secur...
Latif Yusuf Manikkoth v. The Board of Directors of the Bank of Baroda and Others