The Courts and Tribunals while deciding the rights of the parties under any contract or agreement shall decide the same by reading the entire terms and conditions of contract or agreement as a whole and not by reading one or two Clauses in isolation – Zee Entertainment Enterprises Ltd. Vs. Indusind Bank Ltd. – NCLT Mumbai Bench

NCLT held that it is settled proposition of law that date of default would never change unless there are subsequent payments. The law does not prescribe any particular format or a detailed notice. The object and purpose of notice in commercial transactions more so in loan transactions is a mere intimation about default so as to afford an opportunity to the borrower or guarantor to repay the same. The law does not contemplate a lengthy notice running into number of pages. The Courts and Tribunals has to merely see whether the occurrence of default is intimated to the borrower/guarantor or not. The Courts and Tribunals shall not dismiss or invalidate the proceedings filed by banks and financial institutions against defaulting borrowers merely on hyper technical pleas of this nature.

The Courts and Tribunals while deciding the rights of the parties under any contract or agreement shall decide the same by reading the entire terms and conditions of contract or agreement as a whole and not by reading one or two Clauses in isolation – Zee Entertainment Enterprises Ltd. Vs. Indusind Bank Ltd. – NCLT Mumbai Bench Read Post »