Author: Inder Jain

Post-Auction Settlements by Banks — Questions and Case Law It is very common knowledge that the Banks & Financial Corporations put immovable properties to Public Auctions in the case of defaulting borrowers but post auction sometimes engage in settlement with the defaulters. Is such an action of the Bank patently illegal? Does such an action of the bank put a question mark on the the very Integrity of the Banking Sector? The present Article deliberates on the questions posed and refers to the recent case laws in this regard. It would be trite to refer to a recent Apex Court…

In the context of India’s rapidly evolving socio-economic landscape, characterized by shifting family structures and escalating property values, the need for robust mechanisms to facilitate seamless asset succession has become imperative. This article examines the legal merits of mandating the registration of wills under the Indian Registration Act, 1908. Drawing on judicial precedents, empirical data on litigation, and comparative insights, it argues that compulsory registration would bolster the evidentiary value of wills, mitigate family disputes, expedite probate processes, and safeguard against fraud. While acknowledging potential implementation challenges, the article posits that such a reform aligns with principles of legal certainty and public policy, ultimately promoting judicial efficiency and societal harmony along with substantial reduction of judicial pendencies in Court. 

Scope of Review When Subsequent Judgments Overrule Earlier Ones This article deals with the ‘scope of review’ when a judgment and all other subsequent judgments, following the same are overruled by a superior Court. Introduction It is undisputed that the Supreme Court does not legislate laws but it Declares Law, on the basis of judicial interpretations, precedents & Constitutional mandates. When the Legislature legislates a new law or amends an existing law, the same may be prospective or retrospective as per the intent of the Legislature. But when the Supreme Court for the first time or overruling an earlier judgment…

It is very common that a friend or relative of a person who takes a loan from a bank/financial institution/NBFC becomes a guarantor to the loan. Sometimes, the loanee/principal borrower defaults in payment of the loan. Meanwhile, if the guarantor dies, a question arises whether the legal heirs of the guarantor are liable to repay the loan guaranteed by the deceased. In such cases, the legal heirs of the deceased guarantor often deny their liability to repay the loan, arguing that they are personally neither borrowers nor guarantors of the defaulted loan. However, the Courts in India have unanimously and…

Right to Appeal by Non-Parties – Legal Framework and Jurisprudence Introduction The right to appeal is a substantive legal right, but it is not unlimited. Generally, appeals are confined to parties to the original suit or proceeding. However, under certain circumstances, third parties or non-parties may be granted leave to appeal by a competent court. This article explores the contours of this principle, particularly in light of Supreme Court jurisprudence. General Rule: Only Aggrieved Parties May Appeal Ordinarily, the right to appeal is available to parties who are aggrieved by a decision. This is grounded in the principle that a…

It is common knowledge that firms and individuals take cash loans from family members. The Income Tax Department often invokes Section 269SS and thereafter imposes penalty under Section 271D of the Income Tax Act. It needs to be deliberated whether the actions of the Department in such cases are legally justifiable. There are two sections in the Income Tax Act which regulate large cash transactions so that black money can be curbed and transparency is maintained in transactions. Sections 269SS and 269T are important provisions of the Indian Income Tax Act. Their main purpose is to control cash transactions, curb…

It is common knowledge that firms and individuals take cash loans from family members. The Income Tax Department often invokes Section 269SS and thereafter imposes penalty under Section 271D of the Income Tax Act. It needs to be deliberated whether the actions of the Department in such cases are legally justifiable. There are two sections in the Income Tax Act which regulate large cash transactions to curb black money and ensure transparency. The provisions Section 269SS and Section 269T play a crucial role in this context. Their primary purpose is to control cash transactions, restrict the flow of black money,…

Introduction It is common knowledge that patients visit hospitals, doctors’ clinics, or nursing homes for consultation, diagnosis, procedures, emergency treatment, or surgery without being fully aware of the charges involved. When the bill for such services is presented, patients or their families, unaware of the costs, are often taken aback and find themselves in a helpless situation. There is, therefore, a need for a uniform law to be legislated across all States and Union Territories of our country. Such legislation should ensure that patients are provided with full details in advance by displaying tariffs at various locations within the healthcare…

Legal Liability of Banks in Forged Cheque Cases The banking sector plays a pivotal role in facilitating safe financial transactions. Among the core duties of a bank is to honor the cheques drawn by its customers strictly in accordance with their mandate. However, when a cheque bearing a forged signature is honored by the bank, questions of negligence and liability inevitably arise. This article examines the legal liability of banks in cases where they encash cheques bearing forged signatures, duly supported by case law. Legal Principle: A Bank Must Honour Customer’s Mandate Banks act as agents of their customers in…

The Negotiable Instruments Act, 1881 (NI Act), particularly Section 138, aims to ensure the reliability of cheques as a payment method by criminalizing their dishonour due to insufficiency of funds or other reasons. However, if cheque is dishonoued after the issue of a cheque for the reason that the bank account is freezed in compliance of orders from Government authorities/ Enforcement agencies or Courts, a question arises whether such a dishonour of cheque, for reasons beyond the control of the drawer, can give rise to valid proceedings u/s 138 of the NI Act. This article explores the legal position, judicial…