Legal Question in Banking Law in India
The Reserve Bank of India guide lines are statutory and mandatory in nature. The Nationlised banks must follow these guide lines. Though there are specific guide lines by the RBI regarding moratorium period for collection of interest and for reschedulemen and rehabilitation packages the SBI has adopted though approach and declared the industry as NPA there by made the industry sick. Despite of more than sufficient security and despite of repea ted requests to revive the industry the bank officials paid a deaf ear. The industry went into turmoil because of the reasons beyond control ie., because of the spread of virus bird flu. All the prices of the poultry produces touched to the bottom rock and the entire poultry industry in the entire India was effected. The State and Central Governments directed the financial institutions to show a soft corner towards the poultry industry. The RBI announced special relief packages since 2006. Knowing all the facts and despite of coming for rescue the SBI adopted Shakespearean Shylock policy by putting the properties to auction there by causing heavy damage to the reputation of the industry which is very much needed in the business world. There are number of laches in applying the SARFAESI Act also. Now the matter is pending before the DRT. In these circumstances is it possible and to claim for compensation for their gross violations and rehabilitate the industry with their funding.
2 Answers from Attorneys
since the matter is pending in DRT you have to work out your remedies therein. No parallel proceeding will be fruitful.
Better to persue the case at DRT effectively so that result can come in your favour if you really feels that your case is strong. There is no point in talking loud as cases at courts including DRT are judged on merits only.
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