CAIIB Paper 4 Module C Quiz 6

Section 52 permits a secured creditor in liquidation to relinquish its security to the estate or realise it outside the estate, subject to statutory conditions, duties and treatment of any shortfall/surplus.

The IBC sets out how any unpaid balance is treated when a secured creditor realises security separately. The shortfall may be treated as an unsecured claim in the liquidation waterfall, subject to statutory conditions.

The Act prescribes who may certify copies and the form of certification. A proper certificate supports admissibility and evidentiary use.

The Act facilitates evidentiary use of entries but does not make them conclusive proof of every issue. The court assesses evidence and legal effect.

The Act is designed to permit proof through certified copies and protect the ordinary operation of banking records, while retaining statutory powers for inspection/production in appropriate cases.

Reliable CBS evidence depends on integrity controls, preservation of source records, audit trails, access control and compliance with statutory certification requirements.

Section 18 requires a writing signed by the party against whom the right is claimed or an agent duly authorised in that behalf.

An acknowledgment need not necessarily contain an express promise to pay, but it must acknowledge a subsisting liability or jural relationship and satisfy statutory requirements.

For instalment loans, the applicable limitation analysis depends on the contract, whether acceleration was exercised, the nature of the claim and the relevant article. A blanket start date can be unsafe.

Section 25(3) recognises a written and signed promise to pay wholly or partly a debt barred by limitation as a contract. This is distinct from an acknowledgment under section 18 of the Limitation Act.

NPA classification is a prudential/regulatory matter. It does not, by itself, restart limitation; the bank must analyse the applicable legal accrual, acknowledgment, payment and security provisions.

The Scheme contains restrictions for matters involving the same cause of action pending before or decided by an arbitrator or other specified forum.

The Scheme is designed to be accessible without requiring a lawyer’s certificate in every case. The complainant must still meet the Scheme’s conditions, including first complaint to the entity and timing.

The Scheme provides for resolution through facilitation, conciliation or mediation and, where appropriate, passing an award under its provisions.

The Scheme sets out acceptance requirements and timelines for an award. The complainant’s acceptance is relevant to the award becoming binding/enforceable under the Scheme.

Regulated entities should respond promptly through the prescribed channel, provide accurate records and comply with RBI directions and timelines.

Lok Adalats can take up eligible pending or pre-litigation matters within the Act’s framework. Their settlement-based nature and statutory exclusions must be observed.

Under the Act, a Lok Adalat award is deemed a civil court decree and is final and binding; no appeal lies against it under the Act.

A clear written settlement records the parties’ terms and provides the basis for the award. Accurate amounts, dates and obligations reduce ambiguity in enforcement.

The Act establishes national, state, district and other legal services authorities/committees that provide legal services to eligible persons under statutory criteria.