Daily Legal Updates for Law Exams: 21st July 2020.

By Aman Prakash|Updated : July 21st, 2020

1. Why is personal bank guarantee of big defaulters not invoked by public sector Banks: Supreme Court asks FinMin to reply on representation

  • The Supreme Court on Monday asked the Ministry of Finance to furnish a response on the question of why personal guarantees of big corporate loan debtors are not invoked.

  • On a plea filed in the Supreme Court which claimed that a whopping sum of about Rs 1,900 crores is lost on a daily basis merely because the Public Sector Banks are failing to invoke personal bank guarantees furnished by big corporates, the Supreme Court noted that it is an important issue.

  • However, the Bench of Justices Rohinton Nariman and Navin Sinha said that the petitioner should approach the Ministry of finance with this contention first and allowed the petitioner to file a representation before the Ministry as such.

Source: Live Law

2. High Courts can't act at first instance in service matters of employees covered under Administrative Tribunals Act: Delhi HC

  • The Delhi High Court has reaffirmed that the Central Administrative Tribunal exercises sole jurisdiction with respect to service matters of the employees covered under the Administrative Tribunals Act, 1985, and High Courts cannot exercise jurisdiction in the first instance.

  • The Court observed that as per Section 14(1)(b)(i), save as otherwise expressly provided in the Act, the Central Administrative Tribunal exercised all the jurisdiction, power and authority in relation to all service matters concerning a member of any All India Service.

  • ‘Service Matters’, as defined in the Act, included matters relating to conditions of service and includes matters with respect to tenure, confirmation, seniority, promotion, etc, the Court further noted.

Source: Bar & Bench

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