Oriental Bank of Commerce v. Darshan Lal Gaba, (1999) 2 BC 642 / Case Review
Oriental Bank of Commerce v. Darshan Lal Gaba, (1999) 2 BC 642 : 1999-2001 (Supp) ISJ (Banking) 496 (Del). Introduction Bank gives loan for the benefit of the entrepreneur and ultimately, the society. There are few loan takers who, sincerely pay back the loans but there are few black sheep who never intend to pay back the loan. To cater these problems, we had the Debt Recovery Infrastructures namely, Recovery of Debts due to Banks and Financial Institutions Act, 1993, to recover dues from the defaulters. Presently, this act has been replaced by SARFAESI Act, 2002 [1] . SARFAESI Act had to be brought in because when we mix Recovery of Debts due to Banks and Financial Institutions Act, 1993, and Sick Industries Companies Act, then, there is very negligible chance of recovery of the debt. SARFAESI Act, when we go deeper then we find that this act gives power to the lender to take possession of the mortgaged property without getting any sort of decree of possession. Be...