Laws laid down by supreme court

LAWS LAID DOWN BY SUPREME COURT IN BANKING & FINANCING

LAWS LAID DOWN BY SUPREME COURT IN BANKING & FINANCING

 

Guarantor’s liability and liability of the surety

 

“Banks /financial institutes can recover their dues from the guarantor or surety even without exhausting their remedy available to them against the borrower .Consumers are to sign such documents with great care and after they understand the consequences thereof,”

Manohar lal Bhandari v Sun Earth Ceramics [RP No.1926 of 2004 ]order dt 26.5.2009 reported as 2009 CTJ 68(CP)(NCDRC)




CONSUMER’S RIGHT WHEN COMPANY GOES SICK

 

National Commission Held

Smt Sarvjeet Kinra v Modern Denim Ltd in 2008 in appeal no 2069 of 2006 alongwith Appeal no 2067 of 2006and 2068 of 2006

&

 

Smt Sarvjeet Kinra v Modern Thread ((India )Ltd Appeal no 2065 of 2006

Ms Priti Kinra v Modern Terry Towel Ltd Appeal No 2066 of 2006 SCDRC Rajasthan Jaipur

‘.Fixed Deposits are not recovery matters ,it is a consumers own money kept with the company with a promise to pay it back with agreed interest.Hence consumer’s case can continue before the consumer foru’

 

Held,

“Deposit is not a loan but a sum held in trust till the time of maturity Respondant companies were made to pay the principle amount with agreed rate of interest till the date of maturity  but there after simple interest was allowed to be paid as spelled out in the scheme approved by Company Law Board.”

In View of the discussions above ,the law related to Fixed deposits made by the depositor/consumer as on date through various judgements is as hereunder:

1)         Depositor is a consumer under Consumer Protection Act 1986  for receiving services from the service provider who keeps his acconts,calculates and sends interest ,isssues FDR etc and also uses his money for expanding his business for a specified fixed tenure.

2)         Depositor can go to the consumer court even if  respondent company is declared sick. 

3)         In case company  after getting declared sick approaches Company Law Board for preparing a scheme for making payment to the creditors ,in such circumstances ,consumer can go to Company law board for their claim afresh in order to avoid any ambiguity in the orders of both the redressal agencies  and also for execution of their order if any obtained from the consumer court by that time .

 

 

 

 

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