Page 11 - Banking Finance October 2015

LEGAL UPDATE
LEGAL
CASES
Money power can't buy
privileges: SC
Recently the SC imposed a fine of Rs
10 lakh on Vijay Mallya for causing
delays in the proceedings initiated by
the Enforcement Directorate 15
years ago.
Vijay Mallya had
written to the trial
court that as a chair- ment, Laxmi Devi vs State
man of several com-
panies in India and
abroad, he would not
be able to answer summons on the
appointed day, but "I am willing to fix
a mutually convenient date to appear
before you". This provoked sharp re-
action from the Supreme Court.
In their judgment, the judges ob-
served: "From the tenor of the letter,
it appears that it was not a case of
mere seeking accommodation by the
appellant (Mallya) but requiring a
date to be fixed by his convenience.
Such stand by a person facing allega-
tion of serious nature could hardly be
appreciated. Obviously, the enormous
money power makes him believe that
the state should adjust its affairs to
suit his commercial convenience."
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State's misuse of land acquisition law
The Supreme Court has severely officials having novated to portions of
criticised the way the existing Land the land being used as helipads for
Acquisition Act is being misused by 'state dignitaries'.
state governments. The 'urgency'
clause in the law is wantonly invoked We must not forget that even though
for taking over land and ownership of property has
then left idle for decades. ceased to be conceived of
as a fundamental right, it
Assailing this attitude, the continues to receive Con-
court stated in its judg- stitutional protection. It is
also the regrettable real-
of Bihar, a few days ago: ity that governments are
"It is indeed ironical that what was, as
far back as in 1987, perceived as an increasingly relying on rulings of this
imperative, urgent and exigent neces- court to the effect that even if the
sity, justifying the steamrolling of the public purpose providing the predica-
rights of citizens, has proved substan- tion for the compulsory acquisition of
tially to be a fallow and ill-conceived a citizen's land has proved to be an il-
requirement even after the passage of lusion or misconception, another pur-
three decades till date, tracts of the pose can conveniently be discovered or
acquired land remain unutilized, the devised by the state for retention by it
initially declared purpose of construc- of the expropriated land." The court,
tion of residential quarters for state after elaborate reasoning, set aside
the acquisition in this case.
LS clears bill to deal with cheque bounce cases
The Lok Sabha has approved a bill that allows a cheque bouncing case to be
filed at the place where it is presented for clearance and not where it's issued,
thereby improving the redress available in such instances. The amendments to
the Negotiable Instruments Act will have implications for over 18-lakh cheque
bounce cases pending in various courts. The bill seeks to replace an ordinance
that was re-promulgated earlier. Though the bill was passed by the Lok Sabha
in the budget session, it could not be approved by the Rajya Sabha, leading to
the re-promulgation.
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