Economy
Law for bad debts recovery good for Indian banks: Moody's
Moody's said on Monday the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions Bill, 2016, and the Insolvency and Bankruptcy Code, 2016 (bankruptcy), will lead to structural improvements in banks dealing with bad assets.
 
While the bankruptcy law has been enacted, the Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, has to be passed by the Rajya Sabha after it was cleared by the Lok Sabha.
 
The Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, is a credit positive for the Indian banks as it aims to expedite the recovery and resolution of bad debts, said a statement issued by Moody's Investors Services.
 
"Weakness in current processes for bad debt resolution has been a key structural credit challenge for Indian banks. There are currently about 70,000 cases pending in debts recovery tribunals (DRTs), and these cases have been pending for many years owing to various adjournments and prolonged hearings," Moody's said.
 
According to Moody's, the provisions relating to promotion of asset reconstruction companies for banks to off-load their non-performing assets (NPA) and prioritise debt due to secured creditors over all other debts and claims (including government claims) are credit positive features for the Indian banks.
 
The Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, proposed electronic filing of all proceedings, time limit for filing appeals against decisions of Debt Recovery Tribunals (DRTs) reduced to 30 days from 45 and debtors to deposit 50 per cent of the amount of debt payable before filing an appeal are positive for Indian banks, said the credit rating agency.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Delta flights grounded after global systems outage
American airline company Delta on Monday said all its flights were grounded because of a global computer system outage.
 
"Our systems are down everywhere," the airlines tweeted in response to disgruntled customers. 
 
"Hopefully, it won't be much longer," CNN quoted the airlines as saying.
 
Passengers on Twitter reported problems -- including the inability to check in or being stuck on the tarmac -- from airports around the world, including San Francisco and Athens.
 
Delta serves nearly 180 million customers a year, employing over 80,000 personnel, according to its website, the BBC said.
 
It has its headquarters at Atlanta, in Georgia state of the US, and began in the 1920s as a crop-dusting company.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Man ordered to pay USD150,000 for defamatory Facebook post
A district court judge in Australia's New South Wales state has ordered a man to pay $150,000 in damages for writing a defamatory Facebook post that ruined a motel owner's life.
 
In March 2014, electrician David Scott wrote the following post on Facebook: "Pedophile [sic] warning:- Nambucca [town] has been used as a relocation for these monsters - blue dolphin -nirvana hotel and above the Indian restaurant! Bus stops are right out front of theses hotels for our children?"
 
When Kenneth Rothe -- owner of those two hotels - requested Scott for a retraction and an apology, he was threatened and beaten up so badly that Rothe was hospitalised for six months.
 
A former school principal, Rothe, 74, offered crisis accommodation for people fleeing family disputes but denied he ever housed paedophiles under any agreement, The Sydney Morning Herald reported on Monday.
 
Now, judge Judith Gibson has asked Scott to pay $150,000 in damages to Rothe.
 
"This Facebook attack was made on him out of the blue, with no prior inquiry of any kind by any person. It has had a devastating effect on him," the judge was quoted as saying.
 
She found there was no factual basis to Scott's claims.
 
"The anonymity, instaneousness and wide ranging reach of the internet and social media make it a dangerous tool in the hands of persons who see themselves as caped crusaders or whistleblowers, or alternatively want to humiliate or 'troll' other members of the community," the judge pointed out.
 
After the defamatory post, people started making anonymous phone calls to Rothe's motels, asking for sex.
 
Even the Nambucca Valley Crime Information Facebook page had republished the allegations.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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