In order to expedite recovery of stuck up loans/advances the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 was promulgated on 31st May, 1997. In terms Section 8(1) of the said Act, a banking company may, within three years from the date of coming into force of this act, file a suit for recovery of loans written off under any compromise, agreement contract, etc. inclusive of adjustment of a decree made on or after 1st January, 1990, if such write off, compromise or adjustment was found to be based on political reasons or considerations other than bonafide business consideration. It may be appreciated that time limit of three years stipulated in the act to file such type of suit as envisaged above is going to expire shortly. It is a high time for banks/NBFIs to take stock of all such type of cases and make suitable arrangements in their institution to file such suits in order to take full advantage of opportunity provided in the Act before it is elapsed. You are, therefore, advised to ensure that all such cases are searched out and suits filed with the relevant Banking Court or High Court, if not already done, within the prescribed time frame. A list of all cases filed by your bank/NBFI by the above deadline may kindly be sent to us on or before 8th June, 2000.