What exactly were they? by a cheque which was acknowledged by the plaintiff by issuing a BR. What exactly is the replacement cost theory, and Harshad’s version of it? How did brokers access funds from the banks? Banks offering PMS were not supposed to guarantee returns, but there was an unwritten understanding between the PSUs and the banks, on the expected rate of return. In the past, Janakiraman’s classes have worked on marketing plans for a software company, a food company and an after-school program. Whether the cheque in question was issued as a part of the transaction which is alleged to be a “back-to-back” transaction between Canfina Ltd., the plaintiff and the first defendant is one of the issues which necessarily arose on the above-extracted pleadings. The first defendant further took a stand that the second defendant discharged the obligation of the plaintiff to Canfina under the said BR by delivering the said IRFC bonds to Canfina11. Replacement cost is the cash that a firm needs to replace an old asset at the current market price. 11. What was the reason for banks’ profits being low? The unamended plaint7 contained assertions that the plaintiff Bank drew the cheque in issue for the purpose of acquiring 9% IRFC bonds of face value of Rs 100 crores, the same was omitted by the amendment of the plaint. For example, if it took Rs 500 crore to build a new cement or steel plant of a certain capacity, then an existing company with that capacity should be valued at Rs 500 crore. We therefore, proceed on the basis that the Special Court is authorised by law to adjudicate the claim of the second defendant without being shackled by the procedural fetters imposed under the Code. Consequently, a preliminary question regarding the forum which had jurisdiction to adjudicate the dispute which is the subject-matter of the two suits came to be considered by the Hon'ble Justice Variava. * Enter a valid Journal (must A lesser-known aspect is the irregularities in bill discounting by banks. This Court directed that both the suits be placed before the learned Judge who had been nominated to be the Judge presiding over the Special Court (the Hon'ble Justice Variava of the Bombay High Court, as His Lordship then was) for disposal in accordance with law. Old-timers say the bear cartel, aware of Harshad’s problems, prolonged the strike by making other demands. National Housing Bank (hereinafter referred to as “the plaintiff”) a statutory corporation created by an Act of Parliament (Act 53 of 1987) filed two suits, one invoking the original jurisdiction of the Bombay High Court (Suit No. Between April 1991 and May 1992, the securities transactions by banks totaled close to Rs 13 lakh crore. Solved question papers with detailed answer description, explanation are given in this General Awareness - Page 6 Section - 41 The second defendant further took a categorical stand at Para 9 of the written statement; 34. View Ankita Janakiraman’s profile on LinkedIn, the world’s largest professional community. Among the main ones, BRs could not be issued for government securities, they could only be issued when PSU bonds or mutual fund units were traded. Janakiraman Committee Report - not admissible = The Special Court Act though declares that the Court is not bound by the Code of Civil Procedure, it does not relieve the Special Court from the obligation to follow the Evidence Act. In effect, BRs were being issued with BRs as the underlying, instead of securities. The financier would charge an interest, which was higher than the rates in the bond markets, as well as the deposit rates offered by banks. The Special Court also recorded that the only piece of evidence relied upon on the plea of fraud is the Second Report of the Janakiraman Committee, but opined that the Report would not be sufficient to foist any liability on individuals (Para 98). Be that as it may, if really the Government believed that the judgment of the Special Court does not require any interference, nothing stopped the Government from directing both the Banks to withdraw their appeals before this Court. According to the facts pleaded in the amended plaint, National Housing Bank drew a cheque on 3-1-1992 for an amount of Rs 95.39 crores approximately on Reserve Bank of India in favour of State Bank of Saurashtra. Bank A, which temporarily required cash to meet the CRR rule, would sell securities to Bank B. Upcoming Web Series On Harshad Mehta Story As the government gradually withdrew budgetary support, PSUs started raising huge sums from the bond markets even when they did not have any capital expenditure plans. Chief-Examination as follows: there is absolutely No mention of these reports % bonds. Report within 90 days from its first meeting... Swaminathan Janakiraman and Ashwini Kumar Tewari recommended for posts MD! Amend the pleadings in Suit No broking community, SEBI diluted the hike on April 27, but by it! Neither of the magnitude of Rs.4025 crore a free trial to access funds from the judgment under appeal at 9... 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