06-18-2011, 06:32 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bilalfca</i>
<br />salam to all
what does Sec 119(2) means
quote
"where a suit is brought under clause (a) or clause (b) of sub-section (!) the court may at its discretion stay the suit and all the proceedings therein notwithstanding any contract to the contrary, until the trustee has exhausted all his available remedies against the mortgaged property or what remains of it unless the trustee abandons his security and, if necessary, re-transfers the mortgaged property"
unquoted
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hi,
In my view, since under section 119 trustee has both power and 'liability' to save interest of debenture holder, the court may, if consider it necessary, issue an (interim) order requiring trustee to discharge his 'full obligation' to perform services (saving interest of debenture holder) before involving court to do so. It also gives impression that the trustee shall use power to involve court as a last resort and before applying for sue, trustee shall ensure that he has made his every effort to save interest but no success!
I hope it clarifies.
<br />salam to all
what does Sec 119(2) means
quote
"where a suit is brought under clause (a) or clause (b) of sub-section (!) the court may at its discretion stay the suit and all the proceedings therein notwithstanding any contract to the contrary, until the trustee has exhausted all his available remedies against the mortgaged property or what remains of it unless the trustee abandons his security and, if necessary, re-transfers the mortgaged property"
unquoted
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hi,
In my view, since under section 119 trustee has both power and 'liability' to save interest of debenture holder, the court may, if consider it necessary, issue an (interim) order requiring trustee to discharge his 'full obligation' to perform services (saving interest of debenture holder) before involving court to do so. It also gives impression that the trustee shall use power to involve court as a last resort and before applying for sue, trustee shall ensure that he has made his every effort to save interest but no success!
I hope it clarifies.
