manishsinghon
Manish Singh
Hi guys,
The provisions of the ordinance have been termed by some as harsh. It would appear harsh only if the agreement has been entered into with the assumption that whatever be the extent of the borrowing party's failure and default and howsoever much the covenants contained in the agreement may have been violated, the creditor must forbear and not enforce its rights in respect of the securities which the borrower so readily offered at the time of availing of the credit. It has also been argued that this approach need not be adopted in the case of a defaulter who does not default wilfully. That is true but only to a certain extent.
Please share your views…
The provisions of the ordinance have been termed by some as harsh. It would appear harsh only if the agreement has been entered into with the assumption that whatever be the extent of the borrowing party's failure and default and howsoever much the covenants contained in the agreement may have been violated, the creditor must forbear and not enforce its rights in respect of the securities which the borrower so readily offered at the time of availing of the credit. It has also been argued that this approach need not be adopted in the case of a defaulter who does not default wilfully. That is true but only to a certain extent.
Please share your views…