LI NETWORK
Supreme Court bench of Justice Rohinton F Nariman dismissed a petition asking for permission to invoke the personal guarantees that defaulting borrowers, representing large companies who had placed with Public Sector Banks.
Petition also asking for invoking guarantees which could attach defaulters private properties too.
The Supreme Court today said that as per the court’s previous order, representation to the Ministry of Finance was made by the petitioner and a reply was received. Therefore, nothing in the petition survives.
Petition by filed by Bank claimed that a large sum of about Rs 1,900 crores is lost on a daily basis, merely because the public sector banks are failing to invoke personal bank guarantees furnished by big corporations.
Plea asked for directions to Central Government and Reserve Bank to direct invoking of personal guarantees given by the promoters, directors, managerial personnel of large corporate houses case of default of repayment of loans.
