Bombay High Court has ruled that police are duty-bound to extend assistance to banks or financial institutions when they are acting under the Act to take possession of liquidated properties
Mumbai: In a significant order for the banking sector, Bombay High Court has ruled that police are duty-bound to extend assistance to banks or financial institutions when they are acting under the Maharashtra Cooperative Societies Act to take possession of liquidated properties, reports PTI.
The recent ruling by the division bench of Justices AM Khanvilkar and RD Dhanuka came on a petition which alleged that police did not provide protection to the officers of Kolhapur-based Ravi Cooperative Bank for taking possession of a property.
Petitioner Tulsidas Narsinga Vhatkar had bought the property in an auction conducted by the bank. According to him, after the auction, the bank requested the Superintendent of Police (SP) to provide protection for the purpose of taking possession from the original owner.
But the SP, relying on a Supreme Court decision, said it would not be possible. The petitioner on the other hand cited Maharashtra Government's circular of January 2008 which directs police authorities to give assistance/protection to the officers of the Cooperative Department.
Agreeing with the petitioner, the judges held: "If Respondent No 1 (liquidator of the Bank) seeks assistance/ protection to enable him to take steps and perform his statutory duties, we fail to understand as to how the decision of the Apex Court would come in the way of the Superintendent of Police to provide assistance and protection to the Government servant for discharging his statutory duty."
"It is not the case of the bank that forcible possession is being taken over by other than a due process," the bench noted.
If the liquidator intends to proceed to effectuate the auction, which has attained finality, he/she being a government servant, necessary protection must be extended by the local police, the court ruled.
The fact that the present petition was filed by the auction-purchaser does not absolve the police from performing their duty to give protection to a public servant, the judges said.
The tribunal also rejected Loop Telecom's plea to restrain DoT from taking any coercive steps as invocation or encashment of guarantees, in case of its non renewal
New Delhi: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has rejected Loop Telecom's application seeking relief against the government's direction of renewal of performance and financial bank guarantees on spectrum in 21 circles, reports PTI.
The telecom tribunal also rejected Loop Telecom's plea to restrain the Department of Telecommunications (DoT) from taking any coercive steps as invocation or encashment of guarantees, in case of its non renewal.
" ...the licensee (Loop) and the licensor (DoT) and the bank guarantees being valid till January 9, 2013 only, I am of the view that Petitioners (Loop) have not made out any case for staying the operations of the impugned letters... or issue of mandatory injunction against the Respondent (DoT) for not taking any coercive action against the Petitioner," TDSAT said.
The DoT had issued letters to Loop in November 2012 in some of the circles asking it to renew the financial bank guarantees and performance bank guarantees. It mentioned that the bank guarantees would be invoked in case of Loop's non-compliance.
Loop Telecom had contended before the tribunal that it has already closed its operations following the 2 February 2012 order of the Supreme Court cancelling its licences.
Hence, there was no need to fulfil any obligations such as renewal of bank guarantees arising from the cancelled licenses, the telecom company said.
However, rejecting the application, the tribunal said as per the license clauses "on termination or expiry of the licence, the bank guarantee shall be released to the licencee only after ensuring clearance of old dues which the licencee is liable to pay to the licensor (DoT).
"In these petitions, the licences have been cancelled by an order of the Supreme Court which can be considered as if the licences are terminated. The validity of the same, it seems, will expire on 14 January 2013," said TDSAT.
Loop's guarantees are expiring on 9 January 2013 and it was not legally bound to renew it, the company had contended.
The central bank is likely to hold a couple of meetings in January before finalising the guidelines with regard to NBFCs
Mumbai: The Reserve Bank of India (RBI) is likely to meet the representatives of non-banking finance companies (NBFC) this month for consultation before finalising the guidelines for the sector, reports PTI.
"The central bank is likely to hold a couple of meetings in January before finalising the guidelines with regard to NBFCs," an industry source said.
The apex bank had released the final draft guidelines on NBFCs, based on the recommendations of Usha Thorat committee report, last month.
The report proposes revision of NPA recognition norm to 90 days (against the existing 180 days), along with adoption of higher provisioning requirements for NPAs.
It also proposes 10 per cent capital adequacy ratio (CAR) for most of the NBFCs and increase in risk weights for some other asset classes.
Referring to the guidelines, another source in the NBFC industry said the sector has already given representations.
"We have already given our feedback to the central bank and pointed out the difficulties with regard to the treatment of NBFCs on par with banks in some of the regulations," the source said.