III (2006) BC 47 (DB) (Del.) Administrative Law - Policy decision - Court cannot sit in appeal over policy decision.

III (2006) BC 31 (Jhar.)
Writ jurisdiction - Exercise - Only if order passed by Tribunal is without jurisdiction, arbitrary or violated principle of natural justice.

III (2006) BC 204 (Bom.)
Amendment of Plaint - Amendment which do not change nature of suit, not inconsistent with averments in plaint, to be allowed by Court.

III (2006) BC 82 (Del.)
Injunction - Invocation of Bank guarantee - Granted only in cases of fraud and irretrievable damage.

III (2006) BC 84 (DRAT/DRT) (Delhi) Benami Transaction - Prohibition of right to recover property held Benami under Section 4(1), 4(2) of Benami Transaction Act does not apply to claims made under Sections 4(3)(a) & 4(3)(b) of Act where person holding property in HUF for benefit of coparceners in family.

III (2006) BC 44 (Mad.)
Cheating - Intention to cheat cannot be gone into at initial stage.

III (2006) BC 102 (DB) (Raj.)
Limitation - Application for assessment of damages against delinquent Directors - Period of limitation will commence from date of commencement of winding up of company till date of winding up order and additional one year immediately following date of winding up order shall be excluded.

III (2006) BC 25 (P&H)
Inherent powers - Invocation of - To achieve ends of justice, subject to condition that exercise of such power is not in conflict with express provisions of statute.

III (2006) BC 82 (Del.)
Contract - Formation of - Offer of proposal to be accepted in its entirety with conditions or not at all.

III (2006) BC 143 (DB) (Kar.)
Criminal Trial - No criminal trial could proceed in absence of accused - Ex parte procedure as prescribed under civil law is unknown to criminal law.

III (2006) BC 143 (DB) (Kar.) Summons - Service of - Criminal trial - Substituted service - By affixture of duplicates of summons to some conspicuous part of house of accused.

III (2006) BC 5 (Bom.)
Dishonour of Cheque - Alteration of judgment-Criminal Revision Application filed by applicant disposed of by final order-Same cannot be recalled or reviewed in view of specific bar created by Section 362, Cr.P.C.

III (2006) BC 60 (Bom.)
Dishonour of Cheque - Notice sent by Regd. AD on proper address with acknowledgement due - Presumption that notice duly received by addressee.

III (2006) BC 178 (Kar.)
Inherent powers - Pure question of fact, cannot be decided in petition under Section 482, Cr.P.C.

III (2006) BC 21 (Ker.)
Dishonour of Cheque - Burden on complainant to prove cheque was signed by drawer in discharge of legally enforceable debt.

III (2006) BC 151 (Bom.)
Revision Application - Scope of criminal revision application is very limited and this Court cannot substitute its own view for view taken by lower Appellate Court.

III (2006) BC 94 (DRAT/DRT) (Mumbai)
Evidence - Document executed by one who has not purchased stamp-paper - Inadmissible as evidence.

III (2006) BC 200 (Kar.)
Evidence - Unregistered mortgage deed is in admissible as evidence.

III (2006) BC 133 (Del.)
Dishonour of Cheque - Time essence of contract - Burden of proof is upon party which pleads the same.

III (2006) BC 73 (Cal.)
Recovery suit - Provision of Order 21, Civil Procedure Code applicable to Tribunal for recoveries of awarded money under Section 174, M.V. Act.

III (2006) BC 5 (Bom.)
Inherent Powers - Invocation - Cannot be exercised to do what Code specifically prohibits Courts from doing.

III (2006) BC 200 (Kar.)
Interest - Amount borrowed for construction of house, not for 'commercial transaction' - Bank entitled only for contractual rate of interest.

III (2006) BC 196 (Gau.)
Dishonour of Cheque - Self drawn cheque, does not amount to penal offence under Section 138 of Negotiable Instruments Act.

III (2006) BC 156 (SC)
Pleadings - Every pleading should contain only statement in concise form of material facts on which party relies for his claim or defence.

III (2006) BC 156 (SC)
Pleadings - "Material facts" - Facts upon which plaintiff's cause of action or defendant's defence depends and facts which must be proved in order to establish right's of parties.

III (2006) BC 184 (Bom.)
Principles of Damages - Requirement - Plaintiffs to prove damages suffered by them.

III (2006) BC 73 (Cal.)
Public Officer - Meaning of - Nationalised Bank is a corporation created by Central Act and owned and controlled by Central Government - Manager of nationalised Bank can be held as public officer.

III (2006) BC 37 (DRAT/DRT) (Allahabad) Recovery of Debt - Attachment of Property - Necessary ingredients - Property or asset must belong to the defendant.

III (2006) BC 48 (DRAT/DRT)
(Ahmedabad) Cross-examination of witnesses - Cannot be sought as right - Defendants required to prove sufficient grounds in this regard.

III (2006) BC 54 (DRAT/DRT) (Allahabad) Evidence - Production of additional evidence - Pleas not taken in pleadings cannot be accepted as evidence or additional evidence.

III (2006) BC 61 (DRAT/DRT) (Kolkata)
Rejection of plaint - Recovery proceedings instituted under RDDBFI Act cannot be dismissed at interlocutory stage.

III (2006) BC 71 (DRAT/DRT) (Kolkata)
Judicial Admissions - Object - Avoidance of controversy, any complicacy or further useless litigation and speedy, quick disposal of a pending suit or proceeding.

III (2006) BC 156 (SC)
Rejection of Plaint - Grounds - Where it does not disclose cause of action, where relief claimed is undervalued and valuation is not corrected within time as fixed by Court.

III (2006) BC 106 (DB) (Mad.)
SICA - Proceedings-Not an impediment to bar criminal prosecution under Section 138 of Negotiable Instruments Act.

III (2006) BC 200 (Kar.)
Transfer of Property - Mortgages by deposit of title deeds and charges - Loan granted - Mortgage deed not registered - There cannot be any charge on mortgage property under Section 100, Transfer of Property Act.

Abatement of suit against principal debtor : Suit gets abated in its totality : It cannot be decreed against surety alone.

Amendment of Plaint : Suit for recovery of amount : Friendly loan given on misrepresentation.

Arbitration Law : Appeal : Limitation : In Limitation Act, there is no provision made prescribing period of limitation for filing appeal under Section 37.

Arbitration Law : Bid : Price is equated with tenderer who made lowest tender : Reading of clause by Arbitrator is in accordance with law : Petitioner agreed to price preference clause in contract: It is not open to petitioner now to state there was no basis for same.

Arbitration Law : Contract : Arbitrator derives an authority from contract : Award given in disregard of contract arbitrary.

Company Law : Winding up of company : Liability of agent : Nothing to show respondents were acting as agents for foreign company : Respondent company still liable to pay because it entered into contract by placing orders for purchase, without disclosing name of principal.

Company Law : Winding up : "Just and Equitable Clause" : Last resort when no other remedies available.

Contract : Agency : Law contemplates different types of agency : Under Contract Act, concept of del credere agent is well known.

Contract : Continuing Guarantee : Time barred debt would not come under purview of continuing guarantee : Guarantors not liable.

Contract : Discharge of Surety : Even if there is any variance of contract, surety's consent is required otherwise surety would stand discharged.

Dishonour of Cheque : Offence by Company : Prosecution of Company, Not sine qua non for prosecution of Directors.

Dishonour of Cheque : Presumption : It is open to payee to proceed against drawer both under civil for recovery of amount due as well as criminal for offence under Section 138 of Act.

Dishonour of Cheque : Re-examination of witness : Witnesses can not be recalled to fill up lacuna in prosecution case but only if interest of justice necessitate.

Dishonour of Cheque : Section 138 attracted even if cheque is dishonoured because of stop payment instruction to Bank.

Dishonour of Cheque : Sentence : Section 138 prescribes punishment with imprisonment for term which may extend to 1 year or with fine which may extend to twice amount of cheque or with both : This itself cannot be a ground to impose double of cheque amount as fine.

Dishonour of Cheque : Vicarious Liability : Prosecution of drawer under Section 138 of Negotiable Instruments Act : Person who stood surety not vicariously liable and cannot be prosecuted.

Distinction between waiver and estoppel.

Doctrine of Election : Both acts complementary to each other and are to achieve common objective i.e. recovery of debts payable to Banks.

Doctrine of Election : Is rule of estoppel : It is obligation imposed upon party by Court of equity to choose between two inconsistent or alternative rights or claims.

Evidence : Criminal and Civil Suit : Evidence in criminal case may or may not depend upon result of civil suit.

Examination : Re-examination of witness : Witnesses can not be recalled to fill up lacuna in prosecution case but only if interest of justice necessitate.

Interest : Court is competent to reduce rate of interest from contractual rate, pendente lite and post decree interest at lower rate or even refusing interest.

Limitation : Appeal : No provision prescribing limitation for filing appeal under Section 37 of Arbitration and Conciliation Act, 1996.

Limitation : Condonation of Delay : Recovery of Amount : SRFAESI : 45 days from date on which any person aggrieved by measures referred to under Section 13(4) of Act.

Perjury : Prosecution for contempt of lawful authority of public servants : Procedure.

Quashing of proceedings : Dishonour of Cheque : Surety not Vicarious Liable.

Contract : Renewal of debt by borrower would not renew liability of guarantors.

RDDB&FI : Interest : In law there cannot be interest on penal interest : Applicant not laid foundation for granting even penal interest.

RDDB&FI : Jurisdiction : Debts Recovery Tribunal has jurisdiction to entertain application contemplated under Section 17 of Act even in respect of debt of less than Rs. 10 lacs.

RDDB&FI : Locus standi to file Application : Applicants are purchasers of mortgaged property being proceeded by Recovery Officer in recovery proceedings : Applicants have locus standi to file application.

RDDB&FI : Recovery Certificate : Recovery Officer not empowered to examine correctness of certificate : Powers exercisable by Presiding Officer and Recovery Officers distinct.

RDDB&FI : Tribunal cannot go beyond decree of Civil Court : Tribunal cannot incorporate something which is not there in decree of Civil Court.

Recovery Suit : One time settlement : Petitioners did not abide : Contractual matters : Holding up recoveries of loan by unwarranted Court orders causing incalculable harm to our economy.

Review : Improper or wrong appreciation by Tribunal do not fall within scope and ambit of review.

Review Application : No error apparent on face of record : Applicant wishes Tribunal to probe matter afresh and give second look.

SRFAESI : Borrower or any other person in possession of immovable property cannot be physically dispossessed at time of issuing notice under Section 13(4) of Act.

SRFAESI : Constitutionality of provisions of Act cannot be challenged before this Court by invoking doctrine of sub silentio.

SRFAESI : Jurisdiction : Civil Court's jurisdiction to entertain any suit or proceeding ousted in respect of those matters which fall within exclusive jurisdiction of SRFAESI Act.

SRFAESI : Overriding effect of SRFAESI Act cannot abridge scope of SICA.

SRFAESI : Review : Improper or wrong appreciation by Tribunal do not fall within scope and ambit of review.

SRFAESI : Review Application : No error apparent on face of record : Applicant wishes Tribunal to probe matter afresh and give second look.

SRFAESI : Settlement : Conduct of Bank in not expressly informing its decision in respect of settlement indeed reprehensible : Not statutory requirement.

SRFAESI : Simultaneous Remedies : It is open to Bank to have recourse to provisions of SRFAESI Act without withdrawal of O.A.

Security Interest Rules : Sale Notice : No provision under which secured creditor required to wait for 1 month of sale notice.

Sentence : Dishonour of Cheque : Magistrate under Section 29(2), Criminal Procedure Code not empowered to impose fine exceeding Rs. 5,000/-.

Stay of Suit : Dishonour of Cheque : Recourse to Section 151, CPC not permissible.

Transfer of Property : Auction purchaser entitled to claim deduction of property tax, water tax, electricity charges, in and out of sale consideration : Obligation on part of Recovery Officer to inform specifically about prior dues, charges etc. on property brought to sale.

Abatement of proceeding : Irrelevant against deceased defendant in perspective of settlement striven much by other defendants to be reached with Bank : Question of abatement reduced to matter of mere academic interest.

Abatement of Suit : Death of one of partners : On death of any one of partners, party to suit, no necessity to bring L.Rs. of deceased as party to suit : Partner may die, but not firm, unless provided in Partnership Deed.

Admission : Judgment on Admissions : Not automatic affair but instead, reconciliation of minute reading and examination of both subject matters as well as intents of maker or author of pleading.

Auction : Purchaser of auction-sale not liable for provident fund dues of previous owner from whom OSFC took over.

Bank Guarantee : Injunction : Unconditional guarantee, not made dependent on extent of goods supplied : Bank guarantees can be encashed if there is any default and/or non-payment of goods supplied by Company to Contractor.

Banking Regulation : Interest : Reduction from quarterly rests to yearly rests not justified : Entire transaction is one of contract between parties.

Cognizance of Complaint : Cheating : Direction to take cognizance of case under Section 420, IPC cannot be given to Magistrate under Section 482, Cr.P.C..

Inherent powers of Company Court : Winding up of company : No formal application required to be filed for initiating proceeding under Section 433, Companies Act as recommendations made by BIFR or AAIFR.

Company Law : Prohibition for charging fees on percentage basis of profits or contingent upon result of case will not render agreement either void or illegal.

Winding up : Inability to pay amount : Developing tendency amongst litigants to treat winding up jurisdiction of Court as if it is forum for recovery of disputed amount : Petitioner will not be rendered remediless in case winding up petition not entertained.

Winding up : Realisation of Assets : Sale of Property : Court empowered to set aside confirmed sale on ground of inadequacy of price or any other related factors in interest of secured and unsecured creditors and workers.

Winding up : Court is custodian of assets of company in liquidation on behalf of secured and unsecured creditors as well as workmen.

Winding up : Tender : Workmen have overriding claim to that of secured creditors as provided under Section 529-A of Act.

Winding up : Secured creditor of company like S.F.C. answerable to Official Liquidator and has to comply with requirements of Companies Act.

Compromise : If appellant is making payment in terms of compromise, entire O.A. claim would stand satisfied against all defendants.

Contract : Breach of Contract : Liquidated damages awarded by Arbitrator : In terms of Section 74 of Contract Act, Food Corporation of India not liable to prove actual damages suffered by it and entitled to awarded amount in terms of clause in agreement.

Contract : Prohibition for charging fees on percentage basis of profits or contingent upon result of case will not render agreement either void or illegal.

Dishonour of Cheque : Commercial offence : Cannot be taken involving moral turpitude.

Dishonour of Cheque : Discharge of accused : Premature complaint : Trial Court should have waited and allowed complainant to establish its case or cognizance should have been taken after expiry of stipulated period, instead of dismissing complaint outright as premature.

Dishonour of Cheque : Offence by Company : Meaning of term company : Theory of vicarious liability also extended to bodies corporate, firms and association of individuals only but not to sole proprietary concerns.

Dishonour of Cheque : Quashing of Proceedings : Notice : Question whether notice was sent to correct address or wrong address is matter to be decided by Trial Court on basis of evidence to be adduced : No ground to quash proceedings against petitioners.

EPF : Purchaser of auction-sale not liable for provident fund dues of previous owner from whom OSFC took over.

Evidence : By way of affidavit : Jurisdiction of Tribunal : Affidavit not bad in law and not beyond purview of Tribunal to be looked into.

Evidence : Entries in books of accounts : Suit for Recovery of Amount : Proof of transaction : Account books by themselves not sufficient to charge any person with liability.

Execution of money decree : Revision : Grant of deposit of decretal amount as claimed in E.P. : Respondent decree-holder not to withdraw same till appeal is decided.

Injunction : Bank Guarantee : Unconditional guarantee, not made dependent on extent of goods supplied : Bank guarantees can be encashed if there is any default and/or non-payment of goods supplied by Company to Contractor.

Legislative Competency : Recovery of Debts Act and Securitisation Act operate in two different fields : Legislative competency cannot be questioned.

Limitation : Equitable mortgage created immovable property and offered as collateral security for loan : Period prescribed under Article 62 of Limitation Act is 12 years.

Limitation : Suit for recovery towards cash credit hypothecation loan : Error in putting date : Entire document does not become false or fabricated.

Maxim "Delegatus non potest delegare" : Unless expressly authorised delegatee cannot sub-delegate its power.

Partnership : Abatement of Suit : Death of one of partners : On death of any one of partners, party to suit, no necessity to bring L.Rs. of deceased as party to suit.

RDDB&FI : Bill of Exchange : Proof of defendant's signature on Bills of Exchange : Defendant by stepping into witness box denied his signature on Bill of Exchange corroborated by denial of handwriting experts.

RDDB&FI : Compromise : If appellant is making payment in terms of compromise, entire O.A. claim would stand satisfied against all defendants : In event of appellant failing to make payment, as agreed, Court shall be competent to pass decree for amount after deducting amounts paid.

RDDB&FI : Contract : Letters of guarantee does not require registration under Registration Act : They are agreements in required stamp paper and do not require registration.

RDDB&FI : Discharge from Personal Guarantee : Legal Position : Creditor has got independent right of action against principal debtor so also against guarantor.

RDDB&FI : Execution of documents : No specific issue framed on this aspect or specific finding given by Tribunal : Borrowers specifically stated they signed on blank papers and forms which does not amount to execution of documents.

RDDB&FI : Interest : Reduction from quarterly rests to yearly rests not justified : Entire transaction is one of contract between parties.

RDDB&FI : Jurisdiction of Tribunal : Evidence by way of affidavit : Affidavit not bad in law and not beyond purview of Tribunal to be looked into.

RDDB&FI : Liability arising under term loan can be enforced against sureties.

RDDB&FI : Non-performing Accounts : One time settlement : RBI guidelines : Claim of respondent Bank was over Rs. 116 crores : Bank did not err in opposing application for one time settlement.

RDDB&FI : Attachment of sale of debtor's immovable property : Challenge against by bona fide purchaser of property for valuable consideration and that property never belonged to debtor nor mortgaged to Bank as security for repayment of loan.

RDDB&FI : Suit for recovery towards cash credit hypothecation loan : Limitation : Error in putting date : Entire document does not become false or fabricated.

RDDB&FI : Winding up of Company : Secured creditor of company like S.F.C. answerable to Official Liquidator and has to comply with requirements of Companies Act.

Evidence : Entries in books of accounts : Proof of transaction : Account books by themselves not sufficient to charge any person with liability.

Recovery of cheque amount : Leave to defend : Cheque not presented for encashment within its validity period cannot be made basis of suit under Order 37, CPC.

Registration : Letters of guarantee does not require registration under Registration Act : They are agreements in required stamp paper and do not require registration.

Revision : Disposal of I.A. would not amount to disposal of proceeding in finality : C.R.P. not maintainable.

SRFAESI : Abatement of proceedings before BIFR : Lenders having more than 3/4th of value of total outstandings, consented to one of lenders to take action under Section 13(4) of SRFAESI Act : Proceedings before BIFR stand abated.

SRFAESI : Delegation of Authority : District Magistrate may delegate authority to Executive Magistrate and should not himself personally take possession.

SRFAESI : Equitable mortgage created immovable property and offered as collateral security for loan : Limitation : Period prescribed under Article 62 of Limitation Act is 12 years.

SRFAESI : Hearing before taking possession not at all necessary.

SRFAESI : Notice issued to borrower and not guarantor : Proceedings under Section 13(2) vitiated : Scope of Section 13(2) : Purpose of issue of notice.

SRFAESI : Withdrawal of O.A. in DRT before taking action under SRFAESI Act : Simultaneous action under Section 13(4), SRFAESI Act during pendency of O.A. in DRT : Bank or Financial Institution may, with permission of DRT, on application filed by it, withdraw application (O.A.).

SICA : Auction : Sale of assets of company : BIFR empowered to sell assets of company but High Court until winding up order issued, does not have same power.

SICA : Auction : Sale of assests of Company : Jurisdiction of BIFR vis-a-vis Company Court as regards direction for sanction of sale.

SICA : Inherent powers of Company Court : Winding up of company : No formal application required to be filed for initiating proceeding under Section 433, Companies Act as recommendations made by BIFR or AAIFR.

Stay of execution of money decree : Revision : Grant of deposit of decretal amount as claimed in E.P. : Respondent decree-holder not to withdraw same till appeal is decided.

Tender Notice : Cancellation : Same price quoted by petitioner and one another Company : Both Companies created cartel in collusive internationally for certain purposes to keep up prices and kill competition.

Tender for supply of Kishmish : Rejection of certain amount of quantity by UOI : Legality.

Tender : Winding up : Workmen have overriding claim to that of secured creditors as provided under Section 529-A of Act.

Writ Jurisdiction : Appeal to Appellate Tribunal : Statutory appellate remedy available under Section 20 of Act.

Amendment of Written Statement : Suit for recovery of amount : Respondents denied their liability in written statement and sought permission of Court to effect necessary amendments in written statement with alleged interpolations in plaint : Defendant carried out extensive amendments : Court cannot grant blanket permission to party to make amendments of its choice.

Arbitration Law : Arbitration is special statute for matters relating to domestic and international commercial arbitration and law relating to conciliation on basis of UNCITRAL model, but it is general statute vis-a-vis RDB Act, which Act empowers adjudication of recovery claims of Bank and financial institutions by Tribunal set by it expressly : RDB Act overrides provisions of Arbitration Act, 1996 even though it is later statute.

Arbitration Law : RDB Act would prevail over Arbitration Act even though it was later Act : Reasons.

Bank Guarantee : Appointment of Arbitrator : Territorial Jurisdiction : Bid : Forfeiture of Bank guarantee.

Cognizance of Case : Lok Adalat could take cognizance of case only where there is reference to Court : When no compromise could be arrived between parties, record of case shall be returned to concerned Court for disposal in accordance with law.

Company Law : Claim of Set-off : Recovery of Rs. 10 lacs and interest @ 18% p.a. : Entitlement to claim set-off : Conditions to be satisfied before defendant entitled to set-off.

Compounding of Offence : Dishonour of Cheque : Offence under Section 138, Negotiable Instruments Act made compoundable in 2002.

Contract : Guarantee agreement not executed contemporaneously to principal agreement if it is for benefit of principal debtor, may be sufficient consideration to Surety.

Co-operative Societies : Recovery of Loan : Special remedy provided under Section 101 of Act : It has no overriding effect on all other provisions.

Counter Claim : Recovery Suit : Rejection of Plaint : Court fee on counter claim.

Dishonour of Cheque : Admissibility of photocopy of cheque : It would be improper and incorrect to deny complainant opportunity to substantiate his grievance by adducing secondary evidence as permitted under Section 65, Evidence Act.

Dishonour of Cheque : Amount in words subsequently inserted : Material alteration.

Dishonour of Cheque : Averment in petition that petitioner not duly served as notice returned with remarks “not met” : Issuance of notice is necessary : Personal service not necessary.

Dishonour of Cheque : Cheque dishonoured by reason of ‘Stop Payment’ instruction, offence under Section 138 could still be made out.

Dishonour of Cheque : Cheque reached Bank of drawer only beyond 6 months from its date : Appellate Court justified in reversing conviction and acquitting accused : No reason to interfere in impugned order.

Dishonour of Cheque : Cognizance of offence : Scope of Provisions 142 to 146, Negotiable Instruments Act : Provisions of Criminal Procedure Code to be harmoniously read with procedure laid down in Sections 142 to 146, Negotiable Instruments Act.

Dishonour of Cheque : Complaint : Authorization to file : Complaint filed in name and on behalf of company by its employee without authorisation.

Dishonour of Cheque : Complaint can be made by Payee or Holder in Due Course of Cheque in Question : Criteria Satisfied as Complaint is in the name and on behalf of appellant-company.

Dishonour of Cheque : Complaint petition to be read conjointly with statement of notice by Registered Post.

Dishonour of Cheque : Computation of period of limitation : Day from which such period to be reckoned shall be excluded.

Dishonour of Cheque : Consolidation of cases : Joint trial of cases : Ample scope of causing prejudice to petitioner if all cases are tried jointly or in consolidated manner.

Dishonour of Cheque : Dispensing with personal attendance of complainant : Powers of Magistrate.

Dishonour of Cheque : Enforceable Debt : Contributions to ESI : Statutory obligation or liability : Enforceable debt within meaning of Section 138 of Negotiable Instruments Act.

Dishonour of Cheque : Material Alteration : Forensic test and report of handwriting expert : Material alterations in date of cheque by adding “1” before “2” in month to bring it within period of limitation : Accused rightly acquitted as offence under Section 138 of Act not made out.

Dishonour of Cheque : No Requirement that Complainant must Specifically Allege in Complaint that there was Subsisting Liability — Burden of proving that there was no existing debt or liability was on respondents to be discharged in trial.

Dishonour of Cheque : Partnership firm : Quashing of complaint : Proceedings against partner who was not signatory, quashed.

Dishonour of Cheque : Quashing of complaint : Notice contemplated under Section 138(b) to be given to accused by complainant is one given after dishonour of cheque and not before that.

Dishonour of Cheque : Quashing of Second Complaint : Clubbing of complaints : Complainant and accused common in two cases : Both criminal complaints filed by respondent directed to be clubbed and entrusted to Court of Judicial Magistrate.

Dishonour of Cheque : Recording of statement of complainant under Section 200, Criminal Procedure Code not dispensed with by incorporation of Sections 145 and 146, Negotiable Instruments Act.

Dishonour of Cheque : Wrongful Dishonour of Cheque : Liability of drawee to pay damages and compensation : Suit for recovery of amount illegally debited and damages.

Evidence : Dishonour of Cheque : Admissibility of photocopy of cheque : It would be improper and incorrect to deny complainant opportunity to substantiate his grievance by adducing secondary evidence as permitted under Section 65, Evidence Act.

Evidence on Affidavit : Under Section 145(1) of Negotiable Instruments Act, evidence of complainant can also be given on affidavit in any inquiry, trial or other proceedings of Cr.P.C.

Execution : Recovery Suit : Compromise : Execution of Award : Suit filed before Civil Court referred to Lok Adalat : Compromise decree passed in Lok Adalat : Execution of award passed by Lok Adalat through Civil Court : Every award of Lok Adalat deemed to be decree of Civil Court.

Exemption from Personal Appearance : Accused cannot as matter of right seek exemption from personal appearance : Court has to consider grounds for exemption and exercise its discretion under facts and circumstances of case judiciously.

Framing of issue vis-a-vis limitation : Cannot be ground for remanding case.

Interest : Suit for recovery of loan : Commercial transaction : Bank charges interest @ 18% p.a. for such transaction : If there is some specific clause in counter guarantee or bond or contract, Court may pass higher interest than interest specified in Section 3.

Liability of Legal Representative : Liability of L.Rs of deceased to extent of estate, in their hands from deceased.

Limitation : Suit for recovery of amount on basis of pronote : Limitation : While computing period of limitation in any suit, appeal or application, day from which such period to be reckoned shall be excluded.

Partnership : Discharge of Retiring Partner from Liability : Section 32(2) of Act deals with past transactions and question of future transactions does not arise.

Pleadings : Required to be precise and to the point.

Principle of ejusdem generis : Applicable when any particular words pertaining to class, category or genus are followed by general words in such cases.

RDDB&FI : Judgment on Admission : Object : Avoidance of any controversy, any complicacy or further useless litigation and speedy disposal of pending suit or proceeding.

RDDB&FI : Arbitration is special statute for matters relating to domestic and international commercial arbitration and law relating to conciliation on basis of UNCITRAL model, but it is general statute vis-a-vis RDB Act, which Act empowers adjudication of recovery claims of Bank and financial institutions by Tribunal set by it expressly : RDB Act overrides provisions of Arbitration Act, 1996 even though it is later statute.

RDDB&FI : Guarantee agreement not executed contemporaneously to principal agreement if it is for benefit of principal debtor, may be sufficient consideration to Surety.

RDDB&FI : RDB Act would prevail over Arbitration Act even though it was later Act : Reasons.

RDDB&FI : Right of Possession : Protection against physical and peaceful possession : No one should be evicted except in due course of law.

RDDB&FI : Transfer of copy of Recovery Certificate for execution to such other Tribunal where property situated : Not permissible.

Recovery Officer : Scope of investigation by Recovery Officer limited : Recovery Officer is not substitute to Civil Court of competent jurisdiction, which alone has jurisdiction to decide ownership of property.

Recovery Suit : Claim of Set-off : Recovery of Rs. 10 lacs and interest @ 18% p.a. : Entitlement to claim set-off : Conditions to be satisfied before defendant entitled to set-off.

Remand : Framing of issue vis-a-vis limitation : Cannot be ground for remanding case.

Revision Petition : Maintainable under Article 227 of Constitution under supervisory jurisdiction against interlocutory order passed by subordinate Courts and not against final order of Appellate Court in appeal.

SRFAESI : Appeal : Pre-deposit of amount : Reduction to 25% from 50%.

SRFAESI : Possession of Property : Restoration : Property in question was not Bank’s security on date of term loan agreement : Lessee cannot be ousted except by following due process of law : Provisions of SRFAESI Act do not empower secured creditor to dispossess lawful tenant.

Setting aside ex parte judgment and decree : Court committed error of law drawing presumption of service of summons : Presumption under Section 27, General Clauses Act cannot be drawn with regard to service as it cannot be ascertained who signed acknowledgement.

SICA : Appeal : Deposit of 75% of awarded money : Section 10 of 1993 Act gives Act, overriding effect and does not exempt SICA.

Specific Performance of Contract : Jurisdiction : Suit for declaration, injunction, specific performance and recovery of debt : Plaintiff wants to enforce specifically a covenant : Under RDDB Act limited ouster of Civil Court contemplated.

State Financial Corporation : Sale of collateral security : Permissibility : Principles to be followed.

Summons : Presumption of Service : Recovery Suit : Setting aside ex parte judgment and decree : Court committed error of law drawing presumption of service of summons.

Supervisory Jurisdiction : Revision Petition : Maintainable under Article 227 of Constitution under supervisory jurisdiction against interlocutory order passed by subordinate Courts and not against final order of Appellate Court in appeal.

Tender : Attested copies of documents : No specific definition provided for expression “attestation” : Attestation required for purpose of authenticity and correctness of documents filed.

Writ Jurisdiction : Writ Petition : Premature : Availability of Alternative Remedy.

Accused to be Competent Witness : Scope of provision : No Court can comment on failure, omission or refusal of accused to examine himself : Even in prosecution for offence punishable under Section 138, Negotiable Instruments Act, Section 315, Criminal Procedure Code operates with vigour : Burden is on accused under Section 138, N.I. Act, to rebut presumption against him : No Court would be justified in commenting on failure/refusal of accused to take witness stand in support of defence set up by him : Accused need not examine himself as witness and if he wants, he must apply to Court under Section 315, Cr.P.C.

Accused to be Competent Witness : Section 315, Cr.P.C. gives expression to right to silence of accused person recognised by Anglo Saxon system of jurisprudence : Accused need not open his mouth : It is for prosecution to prove its case.

Appeal against Acquittal : Dishonour of Cheque : Appeal against order of acquittal : To attract liability under Section 138 of Act, "existing debt or liability" to be proved : Debt is of year 1990 : Existing debt or subsisting liability of accused not proved by complainant : Penal provision of Section 138 not attracted : This being order of acquittal, High Court would be slow to interfere in order of acquittal unless findings proved to be manifestly erroneous suffering from perversity.

Arbitration Law : Arbitration Award : Contract : Damages for termination of contract : Claim of additional cost due to escalation in prices by appellant : Quantum of market price contained in letter of appellant as basis and quantifying damages cannot be faulted.

Bank Guarantee : Interim Order : Restraining respondent from encashing Bank Guarantees : As per respondent's own case, they have no other money of petitioner lying with them, except amount of Bank Guarantees to fall back for recovery of amount of ad hoc payment made to petitioner : Earlier respondent agreed to adjust amount of ad hoc payment received from petitioner from any amount payable by them to petitioner under any award : Today petitioner has award of more than Rs. 68.00 crores with interest in their favour : Any haste on part of respondent to enforce Bank Guarantees furnished by petitioner not understandable : Respondent not justified in invoking existing Bank Guarantees given by petitioner towards performance security and retention money for recovery of outstanding ad hoc amount from petitioner at this stage : Relief prayed for by petitioner granted.

Bank Guarantee : Limitation : Notice invoking Bank guarantee and for recalling of amount as well as action under Section 29 for recovery of assets against principal debtor are two distinct causes of action : Period of limitation cannot be counted on basis of accrual of cause of action by interchanging two.

Bank Guarantee : Withdrawal of Invocation : Petitioner alleged to have failed to meet export obligation with regard to benefit taken of concessional duty for import of BMW Cars : Reply to show cause notice yet to be given by petitioner : Before expiry of time respondents have written to Bank invoking Bank guarantee : Petitioner to keep Bank guarantee alive till finalization of adjudication proceedings and two months thereafter : Invocation of Bank guarantee stands withdrawn.

Company Law : Winding up : Commencement shall be deemed to be at time of presentation of petition for winding up : Section 441(2), Companies Act not applicable where winding up commenced on basis of BIFR's opinion under Section 20, SICA.

Company Law : Winding up : Company under liquidation can only be represented by official liquidator : Any action for and on behalf of company has to be taken only through official liquidator : Confirmation of sale of assets : Appeal by erstwhile Director on behalf of company not maintainable.

Compensation : Compensation where no Amount of Fine Prescribed in Sentence : Powers of Magistrate : Magistrate can award any sum as compensation.

Contract : Arbitration Award : Conclusion of Contract. : TOI contains Arbitration Clause : Petitioner took no objection and forwarded Bank guarantee to respondent and obtained mobilisation advances : Belated delivery of orders : Appellants claim for increase in cost : Termination of contract by respondent : Respondent's claim allowed by arbitrator with cost : Conduct of appellant in furnishing Bank guarantee and obtaining mobilisation advance as per TOI and commencing project work unconditionally, clearly shows appellant accepted TOI with Arbitration Clause, an absolute and unqualified acceptance to constitute binding contract between parties.

Contract : Continuing Guarantee : Guarantee which extends to series of transactions is continuing guarantee.

Contract : Discharge of Surety : Liability of surety shall stand discharged in case any variance in terms of contract made between principal debtor and creditor without consent of surety with respect to subsequent transactions.

Contract : Liability of guarantor limited to cash credit facility up to sum of Rs. 2,50,000/- : Guarantor not bound by over-drawals allowed by Bank.

Dishonour of Cheque : Acts Constituting Components of Offence-Concatenation of all the said acts is sine qua non for completion of offence under Section 138 though not perpetrated at same locality-If five different acts were done in different localities any one of Courts exercising jurisdiction in one of the five local areas can become place of trial for offence under Section 138, N.I. Act.

Dishonour of Cheque : Cognizance of offences : Facts required to be proved to successfully prosecute drawer for offence under Section 138 of Act : Cause of action within meaning of Section 142(c) arises and can arise, only once : Period of one month for filing complaint will be reckoned from day immediately following day on which period of fifteen days from date of receipt of notice by drawer expires.

Dishonour of Cheque : Dispensing with personal appearance of accused and examination of accused : Exemption could be granted in appropriate cases.

Dishonour of Cheque : Dispensing with personal appearance of complainant : Discretion of Magistrate : Simultaneously there cannot be order of dispensation with attendance of complainant and also acquittal of accused.

Dishonour of Cheque :"Giving of Notice" : Interpretation : Payee has to make demand by "giving a notice" in writing : Failure on part of drawer to pay amount should be within 15 days "of the receipt" of said notice-Giving is a process of which receipt is accomplishment : Consequences of giving strict interpretation to fact that drawer should actually receive notice for period of 15 days to start running : Drawer would get premium to avoid receiving notice by different strategies.

Dishonour of Cheque : Limitation : Cognizance of offence : Period of one month for filing complaint to be reckoned from date immediately following date on which period of 15 days from date of receipt of notice by drawer expired.

Dishonour of Cheque : Notice : Only 1st accused-company and not accused Nos. 2 and 3 signatories/Directors entitled to notice under Section 138 Proviso (b) of Act.

Dishonour of Cheque : Notice : Appellant aware that accused was not residing at address at which notice sent and that he was residing at some other place : Notice ought to have been addressed to accused at that place.

Notice Returned by Sendee as Unclaimed : Such Date, Commencing Date in Reckoning Period of 15 Days : When notice is returned by sendee as unclaimed such date would be commencing date in reckoning period of 15 days contemplated in Section 138, Proviso Clause (d).

Dishonour of Cheque : Offence by Company : Merely being Director of Company there can be no presumption that person is liable in relation to offence committed by Company as such.

Dishonour of Cheque : Sentence : Principle governing imposition of sentence : Not necessary to insist on imposition of any deterrent substantive sentence of imprisonment on petitioner : Leniency can be shown on that aspect : Petitioner sentenced to undergo imprisonment till rising of Court and directed to pay amount of Rs. 27,500/- as compensation under Section 357(3), Cr.P.C. and in default to undergo simple imprisonment for period of 45 days.

Dishonour of cheque : Stay of hearing of appeal till disposal of case : Case pending against petitioners and offence regarding which investigation is pending before police do not relate to same offence as petitioners have been convicted under Section 138, N.I. Act while investigation pending before police is in relation to offence under provisions of IPC which cannot be termed as "same subject matter" so as to attract provisions of Section 210, Cr.P.C.

Dishonour of Cheque : Transfer of Case : Case can be transferred when there is reasonable apprehension on part of party to case that justice will not be done and petitioner not required to demonstrate that justice will inevitably fail : Assurance of fair trial is paramount consideration for transferring criminal case.

Doctrine of Election : When two remedies are available for same relief, party to whom said remedies are available has option to elect to either of them but doctrine would apply to cases where ambit and scope of two remedies is essentially different :While one remedy is under RDDB and FI Act, and other remedy is under some other Act, viz SARFAESI Act, there is no question of Doctrine of Election.

Doctrine of "Wednesbury unreasonableness" : Tender : Pre-qualification condition in N.I.T. issued by C.W.C.: Challenge on ground of arbitrariness, unreasonableness and irrationality : Eligibility criteria fixed has resulted in disqualifying remaining four manufacturers of chemical : Only one manufacturer fulfils criteria : Impugned decision of CWC unreasonable and attract doctrine of "Wednesbury unreasonableness" : Fit case where Court must intervene in public interest : Impugned eligibility condition quashed.

FERA : Company or corporate body could be prosecuted for offences punishable under law, under strict or statutory liability : Liability of company to be prosecuted for offence under Section 56, FERA : Company cannot be sentenced to imprisonment, Court has to resort to punishment of imposition of fine, which is also prescribed punishment : Offences under Section 56, FERA could be committed by company or corporate bodies and minimum sentence of 6 months' imprisonment is prescribed : No legislative intent not to prosecute companies for serious offences, if involving amount or value of more than one lakh and they could be prosecuted only when offences involve amount or value less than one lakh.

FERA :"Imprisonment and Fine" as "Imprisonment or fine" : Such construction impermissible : It amounts to rewriting section : Court would be reading section as applicable to different situations with different meanings : No authority for proposition that it is open to Court to put interpretation on statute which would vary with factual matrix.

FERA : Offences and Prosecutions : Corporations are subject to provision of Section 56, FERA : Statutory mandate is loud and clear : Any interpretation which leads to results contrary to statutory mandate will be in violation of statute : 1973 Act sought to make penal provision more severe : In cases where amount involved exceeds Rs. 1 lakh punishment by way of imprisonment and fine both, will be necessary : Allowing corporations to escape prosecution for offences under Section 56, FERA for only reason that corporations cannot be punished with imprisonment though punishment by way of fine can be levied on them, will be defeating statutory mandate regarding bringing to book offenders under FERA.

FERA : Offences and Prosecutions : Where amount or value does not exceed Rs. one lakh, argument based on impossibility of levy of punishment by way of imprisonment on corporation does not survive because imprisonment in such case not mandatory : For difficulty in sentencing offenders need not escape prosecution : While laying down criminal liability statute does not make any distinction between natural person and corporations.

FERA : Offences and Prosecutions : Velliappa's case specifically notices corporate criminal liability cannot be imposed without making corresponding legislative changes such as imposition of fine in lieu of imprisonment : Such requisite legislative changes were introduced in Australia, France, Netherlands and Belgium : Nothing special in Indian context to take different view.

FERA : Prosecution or conviction against natural persons as also juristic persons like company or corporation : Section 56 of Act r/w aid of definition of 'person' in General Clauses Act is applicable for initiating prosecution and conviction, breach of provisions of Act, Rules, directions or orders, against natural and juristic persons like company or corporation.

Interest : Commercial transaction : Rate of interest agreed between parties : Court will allow interest on same rate and adjust at rate not beyond contractual rate : Plaintiff Bank entitled to interest at contractual rate and not @ 6% p.a.

Interest : Pendente lite and future : Reduction : Justification : When there is no agreement between parties usual rate of interest will be 6% p.a. and when there is agreement between parties, then rate of interest will be that rate agreed between parties : Since rate of interest agreed upon was 17.5% p.a. Court below not justified in reducing rate of interest from 17.5% to simple 7.54%.

Jurisdiction : Recovery of amount based on promissory notes : Seeking attachment from judgment of petition schedule properties : Satisfaction of Court before ordering conditional attachment.

Legal Maxim "Impotentia Excusat Legem" : Law does not compel man to do that which cannot possibly be performed.

Legal Maxim "Judicis est just dicere, non dare" : Role of Court is to interpret law, not to make it : Court cannot act as sympathetic caddie who nudges ball into hole because putt missed hole.

Legal Maxim "Ut res magis valeat quam pereat" : Duty of Court is to construe enactment in such a way to implement rather than defeat legislative purpose.

Limitation : Cognizance of offence : Period of one month for filing complaint to be reckoned from date immediately following date on which period of 15 days from date of receipt of notice by drawer expired.

Limitation : Notice invoking Bank guarantee and for recalling of amount as well as action under Section 29 for recovery of assets against principal debtor are two distinct causes of action : Period of limitation cannot be counted on basis of accrual of cause of action by interchanging two.

Limitation : Suit for recovery of amount advanced against hundis : Limitation : Applicability of provisions of Act : Plaintiff did not file any suit prior to instant one : Question of exclusion of any time during which proceedings under Section 6 of Act 1957 initiated at instance of defendant, does not arise.

Powers of Attorney : Dishonour of Cheque : Complaint through Power of Attorney of person aggrieved : Maintainable.

Principle of Law : Judgments do and have to resolve lis on hand : They do and have to interpret and lay down law : Judgments can also highlight perceived gap between ideal future law and imperfect present law : Judges cannot make law : They can only interpret law : But Judge is not disabled to give vent to his disappointment about inadequate tools in truth discovery process.

Recovery of Debts Due to Banks and Financial Institutions : Abatement of Proceedings : Bringing on record L.Rs. : If one of heirs of deceased defendant is brought on record, then he represents estate of deceased for purposes of suit : In such circumstances suit does not abate even if other L.Rs. of deceased not brought on record : Articles 120 and 121 of Limitation Act do not come into picture and Article 137 which provides limitation of 3 years, would come into operation.

Recovery of Debts Due to Banks and Financial Institutions : Admission : Judgment on Admission : Pronouncement of judgment in factual perspective is matter of discretion of adjudicating body, recording such typical admission in judicial manner : Such admission may be made in three ways, namely "pleading" or "otherwise" or through application.

Appeal : Right to file : Chief Metropolitan Magistrate or District Magistrate may either himself take or cause to be taken such steps or cause to be used such force as necessary for securing compliance of Section 13(4) to take possession of secured assets : Delegation of authority is implicit in wording of Section 14(2).

Recovery of Debts Due to Banks and Financial Institutions : Certificate of recovery on receipt of application under Section 31-A of 1993 Act : Due compliance with principles of natural justice nowhere laid down in Section 31-A of 1993 Act : Under Section 19(20) of 1993 Act, due compliance with natural justice prescribed both for interlocutory as well as final orders to be passed : But in Section 31A application no such requirement laid down : Section 31A has been retention of principles as laid down in Section 38 of CPC : Order to be passed under Section 31A application is class by itself but completely different as well as distinct from other orders to be passed under Section 19(20) of Act.

Recovery of Debts Due to Banks and Financial Institutions : Condition in sanction letter of deposit of FDR and creation of equitable mortgage : Sanction letter and factum of deposit of title deeds do not together become one document much less requiring registration : Issuance of sanction letter is one fact and deposit of title deeds is independent act.

Recovery of Debts Due to Banks and Financial Institutions : Counter claim : Limitation : No contract to give need based finance : Applicant is Bank : Any promise much less oral one made on its behalf would not bind it unless same flows pursuant to decision taken under Company Law : Very foundation of counter claim stands blasted : Counter claim to extent of O.A. amount is in nature of set-off : Same is within limitation for 3 years next before filing O.A. : In absence of any agreement to give need based finance there was no obligation on Bank to give finance as demanded by defendant company from time-to-time.

Recovery of Debts Due to Banks and Financial Institutions : Court fee not payable on counter claim in written statement pending before Tribunal prior to 21.1.2003, i.e. date of amendment of Rule 7 : No retrospective operation of rule given.

Recovery of Debts Due to Banks and Financial Institutions : Enforcement of mortgage properties : Recovery of amount and enforcement of mortgage and hypothecated properties : From materials on record, Tribunal found nothing to disbelieve Bank that it has no sustainable claim against defendant No. 1 and other defendants : Bank's claim on admitted corporate debt to be crystallized through different board resolutions adopted in several meetings of Board of Directors of defendant No. 1 as well as with registration of charges before Registrar of Companies under relevant provisions of Companies Act, hardly to be neglected or disbelieved.

Recovery of Debts Due to Banks and Financial Institutions : Entitlement of Bank to whole amount or to limited extent : Under Rule 12(5) shall be only reduced to limited extent of issuance of certificate of recovery : Tribunal is surprised how applicant Bank dared to claim further amount during pendency of cases : Provisions in Sections 35, 35A, 35B of CPC apply to number of stringent, variable situations where antecedents of defendants to cripple opposite party very much taken into consideration by Legislature while enacting those legal provisions : Payment of costs, compensatory costs in respect of false or vexatious claims or defences, are all within domain of adjudicating Court.

Recovery of Debts Due to Banks and Financial Institutions : Evidence : Recovery of Amount : Under Section 4 of Banker's Books Evidence Act, certified copy of entry in Banker's Book is always admissible in all legal proceedings as prima facie evidence of existence of such entries and lawfully admissible as supportive evidence of transactions, accounts and matters mentioned therein : Copies produced under Section 4 of Banker's Books Evidence Act cannot charge any person with any kind of liability.

Recovery of Debts Due to Banks and Financial Institutions : Interest : Abandonment or waiver of interest amount for settling amount against which legal action initiated : It lies absolutely within domain or capacity of applicant Bank, which has brought into motion entire Act.

Recovery of Debts Due to Banks and Financial Institutions : Lrs. : Abatement of Proceedings : Bringing on record L.Rs. : If one of heirs of deceased defendant is brought on record, then he represents estate of deceased for purposes of suit : In such circumstances suit does not abate even if other L.Rs. of deceased not brought on record : Articles 120 and 121 of Limitation Act do not come into picture and Article 137 which provides limitation of 3 years, would come into operation.

Recovery of Debts Due to Banks and Financial Institutions : Penal interest not being permitted to form part of capitalisation : Any penal interest has been forbidden to be amalgam of capitalisation of DRT Rules, after receiving judicial admission of defendants to extent of amount admitted by defendants to be paid, power of adjudicating Tribunal as expressively laid down 1993 Act.

Recovery of Debts Due to Banks and Financial Institutions : Recovery of Debt : Decree holder and creditor cannot be forced to proceed first against principal debtor and thereafter against guarantor.

Recovery of Debts Due to Banks and Financial Institutions : Res judicata-Inalienably related to finality and conclusiveness of judicial decisions for final termination of disputes in general interest of community as matter of public policy : To further interest of individual by means of protecting him from yolk of multiplicity of proceedings or litigations.

Recovery of Debts Due to Banks and Financial Institutions : Scope of provisions of SARFAESI Act, and RDDB Act : Provisions of both Acts to be harmoniously construed : Both Acts enacted by Parliament and are on Statute Book: RDDB Act, covers secured as well as unsecured dues while SARFAESI Act, takes into account only secured assets and secures interest of secured creditors only: Intention in enacting both Acts is complimentary to each other but they operate in different sphere.

SRFAESI : Appeal : Alternative remedy statutorily provided under Section 17 of Act against order passed under Section 13 of Act : Obligatory upon parties to take recourse to it : It is not open to this Court at this stage to interfere in view of Supreme Court judgment in Mardia Chemicals.

SRFAESI : Appeal : Right to file : Chief Metropolitan Magistrate or District Magistrate may either himself take or cause to be taken such steps or cause to be used such force as necessary for securing compliance of Section 13(4) to take possession of secured assets : Delegation of authority is implicit in wording of Section 14(2).

SRFAESI : Notice : "Authorised Officer" : Officer not less than Chief Manager of public sector Bank or equivalent as specified by Board of Directors of Trustee of secured creditor or any other person or authority exercising powers of superintendence, direction and control of business or affairs of secured creditor : Respondent Bank is not public sector Bank and not proved that Manager who has signed notice under Section 13(2) is either equivalent to Chief Manager of public sector Bank or he is having authority exercising powers of superintendence, direction and control of business or affairs of respondent Bank : Notice issued by respondent Bank by Manager of branch is not in accordance with provisions contained under Rule 8(2) of Rules, 2002 : All subsequent action followed by that notice also becomes invalid and irregular.

SRFAESI : Notice for Taking Possession : Apart from personal notice, it shall also be published in two leading newspapers (one in English and another in vernacular language) : Respondent Bank published both in English language in two newspapers, which is contrary to Sub-rule (2) of Rule 8 : Possession taken by Bank not valid and not in accordance with Rule 8 of 2002 Rules.

SRFAESI : Principles of Natural Justice: Once Bank considers reply sent by defaulter to notice sent by Bank under Section 13(2), and communicates its decision, no further hearing is contemplated before taking action under Section 13(4) : Hearing before act of taking physical possession not at all necessary and not contemplated: Cause of action occurs only when action under Section 13(4) is taken and such action challengeable by filing appeal under Section 17(1) of SARFAESI Act.

Set Off : When defendant claims set off or puts counter claim then amount should be ascertained one and he should make specific claim in written statement and pay Court fee on that amount : No claim clearly made out and no Court fee on amount claimed paid : This amount cannot be adjusted against claim made by plaintiff-appellant.

SICA : Winding up : Commencement shall be deemed to be at time of presentation of petition for winding up : Section 441(2), Companies Act not applicable where winding up commenced on basis of BIFR's opinion under Section 20, SICA.

State Financial Corporation : Jurisdiction : Proceedings under Section 31(2)(aa), SFC Act, against guarantors for recovery of debts : Proceedings saved by Section 34(2) of RDB Act and not required to be transferred to DRT.

State Financial Corporation : Limitation : Notice invoking Bank guarantee and for recalling of amount as well as action under Section 29 for recovery of assets against principal debtor are two distinct causes of action : Period of limitation cannot be counted on basis of accrual of cause of action by interchanging two.

State Financial Corporation : Sale of assets of sick industrial company, viz. principal debtor, contrary to law or same effected without obtaining proper valuation report : Cannot be determined in such proceedings : Director of Company and Company to challenge said sale in appropriate proceedings.

Stay of hearing of appeal till disposal of case : Dishonour of cheque : Case pending against petitioners and offence regarding which investigation is pending before police do not relate to same offence as petitioners have been convicted under Section 138, N.I. Act while investigation pending before police is in relation to offence under provisions of IPC which cannot be termed as "same subject matter" so as to attract provisions of Section 210, Cr.P.C.

Succession to FDR : Banking law and practice : "Either or Survivor Account" : Effect of : In absence of gift pleaded and proved, survivor of fixed deposit receipt will not be entitled to realise amount exclusively for herself : Plaintiff/appellant rightly non suited : Nothing to interfere in judgment of 1st Appellate Court.

Words and Phrases "Giving of Notice" and "Receiving of Notice"-Meaning and distinction explained.

Company Law : Winding up of Company : Jurisdiction : DRT does not have any jurisdiction to entertain any such application.

Complaint : Locus standi to File : Dishonour of Cheque : Concept foreign to criminal jurisprudence : Section 190, Cr.P.C. permits any one to approach Magistrate with complaint.

Compounding of Offence : Insertion of Section 147, Negotiable Instrument Act : Offence made compoundable.

Contract : Acquiescence : Failure to protest by borrowers is not acquiescence.

Contract : Cash Credit Facility : Liability of surety co-extensive with that of principal debtor.

Credit Card : Additional benefit of life insurance policy : Death of card holder : Delay in payment : Bank required to pay interest on delayed payment.

Dishonour of Cheque : Examination of handwriting contained in cheque by handwriting expert : No law prescribes body of cheque should also be written by signatory to cheque.

Dishonour of Cheque : Notice issued stating cheque amount together with interest and costs and cheque amount specifically demanded : Notice valid and legal.

Dishonour of Cheque : Notice : Registered notice returned as "addressee not found" : Complaint cannot be quashed.

Dishonour of Cheque : 6 Cheques dishonoured on same day for identical reason : Offences part of same transaction.

Evidence : Recovery suit based on promissory note : Denial of execution of promissory note : Court has no power to compel person who disputes handwriting to produce documents anterior to litigation.

Interest : Appellant-defendants liable to pay interest on FDRs illegally and arbitrarily withheld.

Arbitration Law : Payment @ 18% for pre-reference, pendent lite and post-award period : Section 34, CPC has no application to arbitration proceedings : But Arbitrator has power and jurisdiction to grant reasonable interest for all three stages.

Negotiable Instruments : Material Alteration : Dishonour of cheque : Amount written in figures corrected will amount to material alteration.

Power to Stop Proceedings : Jurisdiction of Magistrate : Section 258, Cr.P.C. applies only to cases based on police report and not cases based on private complaints.

Power to Stop Proceedings limited to summons case instituted otherwise than upon complaint.

Recovery of Debts Due to Banks and Financial Institutions : Bid : No law that there should not be any auction sale when there is one bidder.

Recovery of Debts Due to Banks and Financial Institutions : Interest : Presumption as to legality of rate of interest cannot be claimed as of right : Discretion of trying Court.

Recovery of Debts Due to Banks and Financial Institutions : Jurisdiction : Vital date for deciding not date when DRT Act passed but when concerned Tribunal established.

Recovery of Debts Due to Banks and Financial Institutions : Limitation not be permitted to stand in way of meritorious point or matter demanding justice.

Recovery of Debts Due to Banks and Financial Institutions : Setting aside order cancelling bid : Offer not accepted : Appellant not declared purchaser : No sale till bid accepted by competent authority.

Seizure/Disposal of Property : Dishonour of Cheque : Custody of documents like cheques can be disposed of like property subject to speedy and natural decay.

Summary Trial : Dishonour of Cheque : Offence under Section 138, Negotiable Instruments Act to be tried summarily.

Tender : Damages : Mere price variation by itself cannot establish claim till plaintiff suffered loss on account of such variation.

Tender : Notice Inviting Tenders merely indicates readiness to receive offers : There is no contract until person asking for tender accepts one of them.

Tender : Tender Documents : Sending tender through courier service : Not mode of sending tender documents.

Withdrawal of case : Award of Costs : Consequential order : Independent effect than effect of withdrawal.

Withdrawal of case : Withdrawal is complete as soon as intimation of withdrawal expressed before Court.

Writ Jurisdiction : Contractual obligations inter se between parties cannot be adjudicated under writ jurisdiction.