Corporate Updates – 08-07-2015


CLB has issued instruction to all the Learned Counsels who are appearing on behalf of their clients to file prior / advance adjournment motion for seeking adjournment of any hearing. It has been found that the Learned Counsels are seeking adjournment at the time of hearing itself. All Learned Counsels shall circulate adjournment motion atleast one week before the date of hearing and file the same with the concerned Bench of CLB. Further the Learned Counsel shall also appear on the date of hearing for placing the request before the Bench.


RBI has advised all Scheduled Commercial Banks to scrupulously ensure that their branches do not open current accounts of entities which enjoy credit facilities (fund based or non-fund based) from the banking system without specifically obtaining a No-Objection Certificate (NOC) from the lending bank(s). Further, banks may open current accounts of prospective customers in case no response is received from the existing bankers after a minimum waiting period of a fortnight. Keeping in view the importance of credit discipline, especially for reduction in NPA level in banks, banks are advised to make use of the information available in CRILC and not limit their due diligence to seeking NOC from the bank with whom the customer is supposed to be enjoying the credit facilities as per his declaration. Further banks may also seek ‘No Objection Certificate’ from the drawee bank where the initial deposit to current account is made by way of a cheque.

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