Press Release : 2007- 08/500 in http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=17340
Revised Draft Circular in http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=966
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Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/ thisisvj@gmail.com
WRITS
I. CERTIORARI – "WE CERTIFY" [ONLY after decision]
By High Court to Inferior Court/Tribunal/Legal Authority;
Grounds – Want to exercise / exercise Excess of Jurisdiction; or violation of procedure or disregard to principles of Natural Justice.
II. PROHIBITION – ON TAKING UP THE MATTER
It commands Legal Authority to REFRAIN from doing something.
III. MANDAMUS – "WE COMMAND"
Ø Judicial remedy;
Ø In the form of ORDER from superior court to Government or Court or Corporation or Public authority;
Ø Order to do/forbear from doing some specific ACT;
Ø ACT àthe body is obliged to do/refrain from doing;
Ø In the nature of Public Duty.
IV. QUO WARRANTO – holding office under "WHAT AUTHORITY"
Ø Public Office;
Ø Holding without Legal Authoriy;
Ø Inquiry as to whether appointment as per law.
V. HABEAS CORPUS – "PRODUCE THE BODY"
An effective means of IMMEDIATE RELEASE from unlawful DETENTION (whether in prison or in control & custody);
Ø When confinement without legal jurisdiction;
Ø High Court order to bring such person before court;
Supreme Court on Indian Drugs & Pharmaceuticals Ltd., v. Workman, Indian Drugs & Pharmaceuticals Ltd., [2007] 79 SCL 21 (SC)
Service matters – Regularisation of TEMPORARY appointees – whether there can be occasions when State or its instrumentalities employ person on temporary or daily wage basis in a CONTINGENCY as additional hands WITHOUT following required procedure, but this does not confer any right on such persons to continue in service or get regular pay; unless appointments are made by following rules, such appointees do not have any right to claim permanent absorption in establishment – HELD, YES;
Whether Courts must exercise judicial restraint, and not encroach into executive or legislative domain; orders for creation of posts, appointment on these posts, regularization, fixing pay scales, continuation in service, promotions, etc…are all executive or legislative functions, and it is highly improper for Judges to step into this sphere, except in a rare and exceptional case – HELD, YES;
Whether therefore, Court/Tribunal cannot direct regularization of temporary appointees de hors recruitment rules, nor can it direct continuation of service of a temporary employee whether called a casual, ad hoc or daily rate employee, or payment of regular salaries to them – HELD, YES.
Supreme Court on Fazilka Co-operative Sugar Mills v. Jatinder Kumar Gupta [2007] 79 SCL 26 (SC)
Section 11A of the Industrial Disputes Act, 1947 – Labour Courts, Tribunal and National Tribunal – Powers of, to give appropriate relief in case of discharge or dismissal of workmen – Respondent-workman, upon his dismissal in year 1992, raised an "industrial dispute" – Meanwhile, workman filed writ petition, wherein appellant was directed to pay subsistence allowance to respondent – As appellant-corporation did not pay said allowance, Labour Court refused to grant opportunity to appellant to lead evidence and directed workman to be reinstated in service with continuity of service along with 50 percent back wages – High Court upheld award passed by Labour Court –
Whether since NO DATE was fixed for payment of said allowance, but dates were fixed in proceedings before Labour Court, payment made by appellant after order of Labour Court closing evidence could not be held arbitrary in any manner – HELD, YES.
Whether after a long passage of time, it would not be proper to direct reinstatement with back wages, and interest of justice would be met, if MONETARY COMPENSATION of Rs. 2 lakhs was to be paid to workman in full and final settlement of his claims – HELD, YES.
In the case of National Insurance Co. Ltd. v Sanjay Shivhare & others à The National Commission reconsiders its own conflicting judgments on "Whether an insurance claim is payable when there is a breach of policy terms" and now settles the law.
HELD that, even if there was a breach of the terms of the policy in respect of its use as a taxi or for hire or reward, the GUIDELINES specifically provided that in such cases 75% OF THE AMOUNT should be paid as a NON-STANDARD CLAIM.
Chief General Manager
MIRSD – DPS III
Securities and Exchange Board of India
SEBI Bhavan, 2nd Floor, A- wing,
Plot No: C – 4A, G Block,
Bandra Kurla Complex,
Mumbai 400 051.
Find full regulation in http://www.sebi.gov.in/Index.jsp?contentDisp=WhatsNewScroll&FilePath=/commreport/inv.html
Thanks & Regards
Alagar
09884731993
Dear All,
Guidelines on Fair Practices Code for Non-Banking Financial Companies
As many of you aware of that the Reserve Bank of India vide its circular DNBS (PD) CC No. 80 / 03.10.042 / 2005-06 dated Sept 28, 2006 has issued a Guidelines on Fair Practices Code for Non-Banking Financial Companies for the purpose of enabling it to regulate the credit system of the country to its advantage, it is necessary to do, hereby, in exercise of powers conferred under Section 45 L of the Reserve Bank of India Act, 1934 ( Act 2 of 1934) and of all the powers enabling it in this behalf, hereby prescribes the broad guidelines on fair practices that are to be framed and approved by the Board of Directors of all Non- Banking Financial Companies (including RNBCs). The fair practices code so framed and approved by the Board of Directors should be published and disseminated on the web-site of the company, if any, for the information of the public
As per this circular, the Guidelines on Fair Practices Code for Non-Banking Financial Companies should contain the following information's.
1. application for loan and their processing
2. Loan appraisal and terms & conditions
3. Disbursement of Loan and changes in the terms and conditions
In this connection, the RBI vide its Circular DNBS.PD/ CC. No. / 03.10.042 /2007-08 dated 10th October 2007 amended the heading "Loan appraisal and terms / Conditions".
Existing Clause "Loan appraisal and terms / Conditions" .
"That the NBFCs should convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record"
After this guidelines tt is understood that in a few cases, borrowers at the time of sanction of loans are not fully aware of the terms and conditions of the loans including rate of interest, either because the NBFC does not provide details of the same or the borrower has no time to look into detailed agreement.
In this connection, we advise that not furnishing a copy of the loan agreement or enclosures quoted in the loan agreement is an unfair practice and this could lead to disputes between the NBFC and the borrower with regard to the terms and conditions on which the loan is granted.
ü When the plaintiff obtains a Decree, he is known as Decree Holder (DH);
ü The defendant is known as Judgment Debtor (JD);
ü The plaintiff DH may execute the decree against the defendant JD;
ü One of the modes of execution is by getting Garnishee Order;
ü A garnishee is a JD's Debtor à "person sought to be warned" (i.e) the banker;
ü Order restraining garnishee from parting with any monies due or accruing due to JD & order for appearance to show cause;
ü The Court may direct the GARNISHEE to pay the money under the decree to the DH;
ü The Garnishee shall be added as a party to the execution proceedings; He shall be given an opportunity for making his representation;
ü 2 types of Garnishee Order:
v Garnishee Order nisi – opportunity to the banker to prove that order could not be enforced;
v Garnishee Order absolute – attaches the account of customer straight away (no opportunity is given to banker).
That's all about Garnishee – a sure shot question in GCL & Banking.
CS – Executive Programme Reference Materials for Company Secretary Exams
The New Syllabus book is available in http://onlythismuch.lawlabz.com or www.learnlabz.com
SNO | SUBJECT | AUTHOR | PUBLICATION |
1. | GCL | KS Anantharaman @ http://www.sitaraman.com/ Try www.dateyvs.com too; | C. Sitaraman & Co. |
2. | CA-CMA | Theory in Study Material; Solve Problems in Guidelines; | ICSI |
3. | TL | Sanjay Mundhra & Vikas Mundra @ http://lawpointkolkata.com/ Try www.dateyvs.com too; | Law Point |
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4. | CL | KS Anantharaman @ http://www.wadhwain.com/ + Guidelines | Wadhwa |
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5. | ELL | VS Datey @ http://www.taxmann.net/ Try www.dateyvs.com too; | Taxmann |
6. | SLC | Corporate Laws & Secretarial Practice by VS Datey with specific reference to chapters like SCRA, SEBI, Listing, etc… | Taxmann |
The Reserve Bank of India vide its AP DIR Circular No.13 dated 6th October 2007 has amended Regulation 4 of Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000. the said Regulations is deals with opening and maintaining in India a Foreign Currency Account known as Exchange Earner's Foreign Currency (EEFC) Account with an authorised dealer subject to the terms and conditions of the Exchange Earner's Foreign Currency Account Scheme specified in the Schedule to the above mentioned Notification.
"8th October 2007 is today"
Credits to Dr. KS Ravichandran
8. Term of office of Chairman, Vice-Chairman and Members.—Except as provided in rule 6 or 7, the Chairman shall hold office till he attains the age of sixty-seven years (the then 65 yrs); the Vice-Chairman shall hold office till he attains the age of sixty-five years (the then 62 yrs)and any other member shall hold office till he attains the age of sixty-two years (the then 60 yrs).
Now, Tamilnadu Urban Finance & Infrastructure Development Corporation Limited and Kerala Power Finance Corporation Limited is added to the list thereby increasing the count to 51 institutions.
Press Release: 2007-2008/473 - check here, http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx
Misuse of banknotes
It has been brought to the Bank's notice that members of public, institutions and others continue to write messages etc. on the watermark window and deface the portraits etc. on the banknotes. The Bank wishes to reiterate that such practices work against the Clean Note Policy of the Bank. All members of public, institutions and others are, therefore, advised not to write/inscribe anything whatsoever on the banknotesRBI/2007-2008/152 DBOD.No.BP.BC.34 /21.04.048 /2007-08
October 4, 2007 -> Thanks to DR. KS Ravichandran
Guidelines on purchase/sale of Non Performing Assets
Please refer to our Circular No.DBOD.BP.BC.16 /21.04.048/2005-06 dated 13 July 2005 on the captioned subject.
All Commercial Banks (excluding RRBs)
All India Term Lending and Refinancing Institutions
All Non Banking Financial Companies (including RNBCs)
2. In terms of the above banks' Boards are required to lay down policies and
guidelines covering among other things, valuation procedure to be followed to ensure that the economic value of financial assets is reasonably estimated based on the assessed cash flows arising out of repayments and recovery prospects. However, it has come to notice that in some cases NPAs have been sold for much less than the value of available securities and no justification has been given.
3. Banks should, while selling NPAs, work out the net present value of the estimated cash flows associated with the realisable value of the available securities net of the cost of realisation. The sale price should generally not be lower than the net present value arrived at in the manner described above.
4. Same principle should be used in compromise settlements. As the payment of the compromise amount may be in instalments, the net present value of the settlement amount should be calculated and this amount should generally not be less than the net present value of the realisable value of securities.
Process for filing Form 32 in cases where Director has died and regular DIN is not available
Thanks to CSMysore
This is with regard to filing of form 32 for cessation of directors due to death, who were appointed prior to 1 st July, 2007 and had not obtained approved DIN
1. Please send an email to appl.helpdesk@mca.gov.in furnishing following details under heading – 'Form 32 – death case, No DIN'
v Name of the company (in which the individual was a director)
v Name of the deceased Director
v Date of birth
v Date of appointment as Director
v Date of filing of Form 32 for appointment
v Date of death (along with certified copy of death certificate issued by competent authority)
(e.g) e-mail address of the company
2. Upon receipt of email, MCA Helpdesk will check and consider the information submitted and if found satisfactory, MCA Helpdesk will intimate the status/ outcome of the ticket to the stakeholder. If MCA Helpdesk needs additional information from the stakeholder, he will send an email to the Company accordingly.
3. Upon receipt of approval email from MCA, stakeholder will be required to file the form directly with the concerned ROC along with - signed form 32, necessary attachments, and a copy of approval e-mail and proof of payment of filing fee, with the respective ROC office. Filing Fee will be paid through ' Pay Miscellaneous Fee' option on MCA portal.
4. ROC will process / approve the form, scan the physical form 32 along with its attachments and upload the same in the electronic records of the company through 'On Demand Scanning' option.
5. ROC will update the relevant records/ data of the company accordingly.
Ashim Investment Co. Ltd.,
"42(3) This section shall not prevent a subsidiary from continuing to be a member of its holding company if it was a member thereof either at the commencement of this Act or before becoming a subsidiary of the holding company, but except in the cases referred to in sub-section (2), the subsidiary shall have no right to vote at meetings of the holding company or of any class of members thereof".
Held that Section 42 provides that a subsidiary company cannot hold shares or be a member of its holding company. Section 42(3) provides an exception to general rule and permits a subsidiary company to continue as member of holding company. Existing shareholding of the subsidiary company in the holding company will be protected under section 42(3), but the subsidiary companies will not have any voting rights.
Supreme Court in Gujarat Bottling Co. Ltd v. Coca Cola, HELD that any NEGATIVE COVENANT in an agreement which was operative during the SUBSISTENCE of a contract was VALID but such negative covenant in an agreement which were purported to be made operative AFTER the expiry of the agreement were VOID being restrictive of trade under Section 27 of The Indian Contract Act, 1872.
