DRT has no power to condone delay

AIR 2011 MP 205
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Stay of SARFAESI proceedings

No civil court or consumer forum can stay the proceedings under SARFAESI. AIR 2011 Ori 164
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Publicity to a debt

In England, it is an offence by statute to unduly publicise the existence of any debit with the object of concerning the debtor to pay.  This is unlawful harassment. Argyll v. Argyll, (1965) 1 All ER 611 (Thomas J.)

Winding up - disputed debt

Dispute in relation to a debt means dispute between the petitioner and the respondent company. There is a privity of contract, and dispute between third party and the respondent company is not relevant.

Sunil Kothari v. Today Homes, (2011) 107 SCL 216 (Delhi)

Foreign Guarantee and FEMA

If the said guarantee declaration had been executed by the respondent in breach of any provisions of FEMA or FERA, the respondent could be prosecuted for the same. But, it could not be said that the guarantee was null, void or could not be enforced on that ground.

There was no doubt that a debt was owed by the respondent to the petitioner and, further the petitioner did not have to wait to obtain a decree from civil court on the basis of the guarantee declaration.

[2011] 106 SCL 433 (delhi)



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Guarantee - when the debt accrues

The liability of the guarantor would not arise until (a) the borrower has failed; and (b) a notice of demand has been served on the guarantor. Only then can it be said that the debt would accrue. 1981 51 comp cases 301


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SARFAESI Act, challenge to deposit requirement

Condition of pre-deposit of 25% is not unreasonable.

courts cannot substitute legal provisions nor can can they legislate.