recovery-of-debts-and-bankruptcy-act-faq

FAQ About Various Misc. Matters Under RDB Act

Answer: It has been held by the Supreme Court of India in the case of Indian Bank –Versus- Blue Jaggers Estates Ltd. reported in (2010)8 Supreme Court Cases Page 129 that a borrower cannot challenge the agreed rate of interest.

Answer: It has been held by the Supreme Court of India in the case of State Bank of Bikaner & Jaipur –Versus- Ballav Das and Company reported in (1999)7 Supreme Court Cases Page 539 that the borrower’s liability as principal debtor still remains, even a loan is covered by ECGC guarantee.

Answer: In the case of disobedience of an order made by the Tribunal or breach of any of the terms on which the order was made, the Tribunal may order the properties of the person guilty of such disobedience or breach to be attached and may also order such person to be detained in the civil prison for a term not exceeding three months, unless in the meantime, the Tribunal directs his release.

(See Section 19(17) of RDB Act, 1993)

Answer: The Presiding Officer has the power to correct any clerical or arithmetical mistake in the recovery certificate even after certificate has been issued to the recovery officer. 

                        (See Section 26(2) of RDB Act, 1993)



Answer: The rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority.

 

                          (See Section 31B of RDB Act, 1993)

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