38.6c New Delhi, India, Thursday, October 31, 2024
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Judiciary

Why arent Personal Guarantees of Big Corporate Loan Defaulters invoked by PSBs?: SC questions the Ministry of Finance

By Prachi Misra      24 July, 2020 02:12 PM      0 Comments
Ministry of Finance Supreme Court public sector banks

The Ministry of Finance has been directed by the Apex Court to respond to a petition which claims Rs 1,900 crores are lost every day due to public sector banks not invoking personal guarantees of big corporate loan defaulters.

On Monday, 20th July 2020 a bench headed by Justice Rohinton F Nariman observed that the ministry should reply to the petitioner once representation is made.

The bench told Senior Lawyer Manan Mishra, who appeared in the PIL petitioners in the matter Your petition has mentioned that the Ministry of Finance itself has, by a Circular, directed personal guarantees issued by promoters/managerial personnel to be invoked. But you claim the public sector undertakings are not complying with this circular. We think you should first go to the ministry.

Manan Mishra argued based on the statistics that there has been a loss of approximately 1.85Lakhs Crore in a financial year to the public sector banks while they shy away from invoking personal guarantees of the biggest corporate defaulters.

He further added that loans of individuals get recovered easily but it becomes difficult for promoters, chairpersons, and managers of big corporations to get away despite making huge defaults of loans.

At this, the bench said that since the ministry has issued notification for the same, it is better to seek a response from there and then back to the court. 

Manan Mishra accepted the suggestion and requested the bench to issue a specific direction to the ministry for giving its response.

The court agreed and stated The representation will be made within a period of two weeks from today. The Ministry of Finance is directed to reply to the said representation within a period of four weeks after receiving such representations.

The Senior Advocate asked for the liberty to come back after the ministrys reply. Justice Nariman said Of course it is open to you to come back once they decide. We will hear from you.

 



Share this article:



Leave a feedback about this
TRENDING NEWS


TOP STORIES

sc-tells-ncp-led-by-ajit-pawar-to-declare-use-of-clock-symbol-sub-judice
Trending Judiciary
SC tells NCP led by Ajit Pawar to declare use of Clock symbol sub judice

SC directs Ajit Pawar-led NCP to declare ‘Clock’ symbol use as sub judice in all election materials, pending final court ruling on its rightful ownership.

25 October, 2024 11:12 AM
justice-sanjiv-khanna-to-take-oath-as-chief-justice-of-india-on-nov-11-2024
Trending Legal Insiders
Justice Sanjiv Khanna to take oath as Chief Justice of India on Nov 11, 2024 [Read Notification]

Justice Sanjiv Khanna appointed as the 51st Chief Justice of India, succeeding CJI Chandrachud, with a tenure starting on November 11, 2024.

25 October, 2024 11:17 AM
sc-grants-bail-to-businessman-in-delhi-liquor-policy-scam-case
Trending Judiciary
SC grants bail to businessman in Delhi liquor policy scam case

Supreme Court grants bail to businessman Amandeep Singh Dhall in Delhi liquor policy scam case, noting the lengthy trial process with over 300 witnesses.

25 October, 2024 04:11 PM
sc-dismisses-ex-jharkhand-cms-plea-for-suspension-of-conviction-to-allow-him-contest-assembly-polls
Trending Judiciary
SC dismisses ex Jharkhand CM's plea for suspension of conviction to allow him contest Assembly polls

The Supreme Court rejects ex-Jharkhand CM Madhu Koda’s plea to stay his conviction, barring him from contesting the upcoming Assembly elections.

25 October, 2024 05:10 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email