Don't stop recovery procedures

 New Delhi December 07, 2009,

The Supreme Court last week set aside the judgement
 of the Punjab and Haryana high court and declared that
 the court could not stop the state financial institutions 
from taking steps to recover loans given to industries.

 The court cannot act as an appellate authority and nullify
the recovery steps unless they are against the law,
 unreasonable and unfair.

 The financial corporations are
“not expected to flounder public money for
 promoting private interests”.

In this case,
Punjab Financial Corporation vs Surya Auto Industries, 
the court observed that the borrower was recalcitrant
and did not accept the liberal terms offered by the
corporation. The high court altered the terms of the
agreement to suit the borrower, which was illegal.

Source:BS