Bad debts recovered under which head

Introdution The Debts Recovery Tribunal has been constituted under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The original aim of the Debts Recovery Tribunal was to receive claim applications from Banks and Financial Institutions against their defaulting borrowers. To aid the procedure thereof, the Debts Recovery Tribunal (Procedure) Rules 1993 were also drafted.While initially the Debts Recovery Tribunals did perform well and helped the Banks and Financial Institutions recover substantially large parts of their non performing assets, or their bad debts as they are commonly known, but their progress was stunted when it came to large and powerful borrowers. These borrowers were able to stall the progress in the Debts Recovery Tribunals on various grounds, primarily on the ground that their claims against the lenders were pending in the civil courts, and if the Debts Recovery Tribunal were adjudicate the matter and auction off their … [Read more...] about Debt Recovery Tribunal: A Non-Performing Asset

The European Union has introduced a new procedure to facilitate cross-border debt recovery, which aims to preserve funds and recover bad debt.BackgroundRegulation No. 655/2014 (the Regulation) was introduced to preserve funds and allow recovery of bad debt across EU borders. The European Commission estimated that the Regulation will lead to the recovery of €373 million–€600 million per year. However, this is not the only impact of the Regulation—it also provides shared rules regarding the procedure for issuing an order, a disclosure order relating to banking information, enforcement standards, and available remedies.To achieve its aims, the Regulation has created European Account Preservation Orders (EAPOs) (commonly referred to as “Preservation Orders” in the Regulation text), which are available as an alternative to any instrument available under the relevant national law. EAPOs are separate and standalone Europe-wide orders, which enable creditors … [Read more...] about European Account Preservation Orders: A New Method for Debt Recovery

Consumer attorney Jerry Jarzombek calls them “testaliars.”He’s talking about agents and attorneys representing creditors he says frequently falsify affidavits of service or present erroneous legal documents to his clients and to the court. The paperwork involves unpaid debts from credit cards, payday loans, medical bills and the like.“They are scavengers, buzzards picking at the decaying carcass of a debt,” he says. He recalls one client in recent years whose checking account records proved she was away from home purchasing supplies for her family farm the same day a debt process server swore she was personally served notice of a lawsuit. Another received two separate judgments for the same debt. A third was sued with documentation for a debt originating from a bank other than the one that issued her credit card.Jarzombek, whose Fort Worth, Texas, practice represents a wide range of consumer borrowers, says these are typical of cases he confronts in the … [Read more...] about Attorneys push for change in debt collection

Amidst the ongoing investigation into the Rs. 12,600 crore Punjab National Bank (PNB) fraud, Mumbai Bench of the National Company Law Tribunal (NCLT) has restrained Nirav Modi, Mehul Choksi and 62 others associated with the two diamond dealers from removing, transferring or disposing of funds, assets and properties of entities and individuals. Listing down such entities, the NCLT Bench comprising BSV Prakash Kumar and V. Nallasenapathy ruled, “In view of the same, this Bench, by invoking section 221 of the Companies Act, 2013 and section 43 of LLP Act, 2008, hereby injunct the Respondents and other companies, LLPs, Trusts and individuals mentioned above from removal, transfer or disposal of funds, assets and properties of the entities and individuals mentioned above until further orders.” The ex-parte order was passed on a Petition filed by the Ministry of Corporate Affairs demanding inter alia disclosure of moveable and immovable assets of the Respondent entities, as well … [Read more...] about PNB Fraud: NCLT Prohibits Nirav Modi, Mehul Choksi And 62 Others From Selling Their Assets [Read Order]

NA Standing Committee concludes 29th meeting NA Chairwoman Nguyen Thi Kim Ngan (centre) addresses the NA Standing Committee's session on December 11 The National Assembly Standing Committee wrapped up its 29th session on December 11, completing all items on the working agenda of the two-day meeting.   The committee gave opinions on the outcomes of the NA’s sixth plenum and preparations for the seventh, and discussed amendments to the programme on building laws and ordinances in 2019 and the purchase of additional rice for national reserve as well as the provision of more money to buy animal medicine for stocking. They also evaluated the outcomes of the implementation of the committee’s external relations and international cooperation in 2018, while deciding the programme for the activities in 2019, along with the committee’s working plan for 2019. NA Chairwoman Nguyen Thi Kim Ngan asked the NA General Secretary to note all opinions of the … [Read more...] about Government News 12/12