scheme. Their submission is that ARCIL had purchased the right to recover the debts from the creditors/Banks at much low price in comparison ... which they had paid to purchase the debt and the value of the debt they had purchased. ARCIL, through their Counsel, have filed two affidavits
business; that the trading debts of the old firm do not become the trading debt of the purchaser and that they do not retain ... over as a running business, the trading debts purchased by the purchaser remain as trading debts in his hands. They are the debts in respect
function to the detriment of its financial
well being. When a debt is purchased at a
price fixed, may be after ascertaining the
worth ... Therefore,
the activity of selling and purchasing debts
cannot be treated to be a form of business of
a banking company in addition
debt due and payable by the borrower(s) to the bank. Secondly, the bank is the owner of such debt. Such debt is an asset ... debts, it cannot be said that the banks are trading in debts, as held by the High Court(s). The assignor bank has never purchased
said
amount represented the debt, which was payable by the
appellant. As per the agreement, the debts were
purchased by the respondent as the Factoring ... that the debt in question was an insured
debt therefore, since the respondent had obtained the insurable
interest in the debts purchased, therefore, the respondent
agriculturist-debtor the auction-purchaser
cannot complain. Secondly, the stranger auction-purchaser
knows that he had purchased the property at a distress sale.
Thirdly even ... decreeholder-purchaser. A bona fide alienee
on the other hand purchases, the property under negotiation;
he has no notice of the debt of the debtor
Court erred in holding that in assigning debts with
underlying security the assignor banks were trading in debts
which was not permissible ... under the BR Act, 1949 because the
assignor bank had never purchased debts, it had advanced loans
against security which was a part
undertaking. Under these sections when the undertaking
vests in the purchaser, any debt, mortgage or similar
obligation attaches to the purchase money in substitution ... intending purchaser under
sub-section (6) of section 6
(i) the undertaking shall vest in the
purchaser .......... free from any debt,
mortgage or similar obligation
case was a speculative builder erecting working class houses for sale. The purchaser usually paid a small initial deposit but the greater part ... this item will go to form part of the total purchases. Debts remaining due at the end of the period of account should be brought
Chennai seeking for delivery of possession of the property purchased by them. The Debts Recovery Tribunal, by order dated 28.3.2006, allowed the Application by directing ... recovering the amount of debt due.
12. Section 29 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 makes the Second
