Judgement precedent in cases of write-off
Querist :
Anonymous
(Querist) 05 September 2011
This query is : Resolved
A bank filed a case in DRT for recovery of outstanding dues. Subsequently the Bank sold off the secured assets and has opted for Regular Write Off (Not Prudential write-off)with no intimation to anyone.The Bank statement now shows only Rs. 400 as outstanding amount. The bank still pursues the case with DRT for recovery of the dues.
I shall be grateful if there are some precedents of DRT/Higher Courts judgements in such cases.
Guest
(Expert) 05 September 2011
Efforts by the banks cannot be dispensed with to recover the bad debt if that becomes possible to be realised at any time, irrespective of the debt having been written off. The bank need not intimate write off of bad debt, except to the statutory audit and the tax audit. Bad debt when realised that becomes part of miscellaneous revenue and forms part of the Profit & Loss Statement of the bank.
Chanchal Nag Chowdhury
(Expert) 05 September 2011
Since everything has already been done, why not pay the Rs.400/-& clear it once for all?
