National Consumer disputes redressal Commission has framed Cheque Collection Policies (CCPs) of Banks. The policy framed by the Commission covers time frame for collection of local and outstation cheque. Time frame for Local Clearing: The credit and debits of local cheque shall be given on the same day or at the most the next day…
The implication of a bounced cheque is that the defaulter has to face a dire legal consequences. The punishment for bounced cheque is very severe with prison term of 2 years and / or a fine up to twice the cheque amount. When a cheque is returned unpaid by the drawee bank with a cheque returned memo…
“Trust Receipt” under the contract of pledge In “trust receipt” under the contract of pledge, the borrower gets his assets/goods released from the pledge, only on full payment of his dues which automatically terminates contract of pledge. However in case of Key cash Credit or Key Loan, if bank desire to release the assets/goods retained…
Pledge is only a special kind of bailment where the object of the delivery of assets/goods is to provide a security for a loan or for the fulfillment of an obligation. Section 148 of the Indian Contract Act, 1872 defines the” bailment”. Section 172 to 176 of the Indian Contract Act, 1872 deals with pledge…
The lender’s right to the term “Hypothecation of assets” is not defined in anywhere in the statute. Some courts have even compared ‘hypothecation to a mortgage of movables’. In hypothecation, neither the possession of assets nor the ownership of the assets transferred to the lender (hypothecatee). The asset hypothecated remains under the possession of the…
When the rights, title and interest in debts due or accruing due to a person are transferred to another person, it is called assignment and actionable claim means any claim other than the debt to mortgage of immovable property or hypothecation or pledge of goods and receivables. Transfer of Life Insurance Policy, National Saving Certificates, Supply bills…