Basically, lien and pledge are forms of the right to retain goods for the same purpose i.e. both are security interest options for payment of a debt. Though they look identical; there are certain differences which this article identifies herein. Lien: Lien is akin to bailment. It is the right to retain goods or securities…
The lender’s right to the term “Hypothecation of assets” is not defined anywhere in the statute. Some courts have even compared hypothecation to the mortgage of movables. Hypothecation of assets is defined in SARFAESI ordinance 2002 as under; “a charge in or upon any movable property, existing or future, created by a borrower in favour…
[This article explains the relationship between the bank and the customer like creditor and the debtor, Lessor and the Lessee, Trustee and beneficiary, bailor and bailee, Principal and the agent, assigner and assignee etc. according to the type of service rendered by the bank.] Basically, the relationship between banker and customer is contractual in nature.…
(This article answers various questions of the readers such as who is a consumer, Who can file the case and represent at the consumer court, What is to be done before filing a complaint, Where to lodge the complaints, How to file a complaint, What are the powers of consumer courts, what are the powers…
According to consumer protection act of 1986, a consumer is a person who has purchased products or services for a consideration which is not used for commercial purpose or resale. A consumer may file the off-line complaint in the consumer court against the seller of products and services about the defects, duplicity, overcharging, cheating, misleading…
In our previous posts we have talked about (1) What is a stock audit (2) What is a forensic audit? (3) Concurrent Audit System in the bank. (4) What is a statutory audit?. (5) Tax audit. In this post let us study what is a Legal Audit? A legal audit is normally used by…
The law of limitation means the time-limit for different suits within which an aggrieved person can approach the court to obtain a decree against the principal debtor and surety. The different time limit or period of limitation is prescribed for different types of suits, appeals, or applications in the ‘Schedule’ to the Limitation Act, 1963.…
Definition of Guarantee: A contract of guarantee means a contract to perform the promise or discharge liability of the third person in case of his default. A guarantee which extends to series of transactions is called continuing guarantee. The meaning of Surety (Guarantor), principal debtor, and creditor: The person who gives the guarantee is called…
(The law of limitation applicable to a general guarantee and the guarantee issued by banks and financial institutions are different. This article explains the law of limitation explicitly applicable to bank guarantees, invocation and cancellation of bank guarantees) The law of limitation of time means the time-limit for different suits within which an aggrieved person…
KYC is necessary for opening and maintaining current accounts of individuals, proprietorship, partnership firms, corporates, trusts, Associations, societies, clubs etc. When the bank accounts of individuals are opened, banks mainly look into the identity and address proof of the applicant such as official valid documents (OVDs) like Aadhar card, Voter ID, PAN card, Driving License,…