An appeal to lawmakers
I would like to draw the kind attention of the general readers and the lawmakers of the country in particular to the Section 18 (3) of the Arthorin Adalat Ain 2003 (Ain). This is a bad law as it discourages the investors to invest in the long run. No business can guarantee profit. If it could be ensured, then everyone would start a business. In practice , only 3-5% of the world population are risk takers i.e. the entrepreneurs, the prime movers of the economy.
This law has been enacted ignoring the fundamental rights of the investors who borrowed funds to set up industries, created employment opportunities and contributed to the economic growth of the country.
As I know, some borrowers lodged money suits against banks much before the promulgation of this law and in some cases the borrowers' claim is much higher than the bank's claim in Artho Rin suit. It will not be out of place to mention here that if the bank wins in the subsequent. Artha Rin suit, the borrower company's existence will be in total jeopardy to meet the said decree, in spite of having more claim pending in the earlier suit against the bank. Whereas if the borrower company wins in the earlier suit there will be no such problem for the bank.
Because of this law all the defaulting borrowers are deprived of their fundamental right ( as laid in Part iii of the constitution ) of being treated equally (Article 27) and the right of protection of law (Article 31). Finding no other remedy, some borrowers filed writ petition challenging the Ain to the Hon'ble Court to enforce their fundamental rights under Article 102 of the constitution. In most cases the Hon'ble High Court Division of the Supreme Court issued rule in favour of the borrowers and stayed the Artho Rin suit filed by the bank till disposal of the rule. But this cannot be a permanent solution of the issue.
I hope the matter will be taken up by the lawmakers for rectification of the law and allowing analogous hearing of the cases filed by the borrower and the bank in two different courts. It will save the entrepreneurs.
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