Letters to the editor dated May 24, 2021

This refers to the editorial ‘Welcome clarification’. The apex court judgment upholding creditors’ right to to proceed against personal guarantors to a corporate borrower helps lift the uncertainty of banks and other financial creditors to pursue not only the corporate borrower but also individuals who stood as personal guarantors to enable the flow of credit to the company.

Banks now stand a real chance to recover substantially more from the resolution of a stressed corporate entity and from affluent personal guarantors for loans extended to the company by them. This ruling curbs rash borrowings by companies using guarantees given by promoters.

Now banks have the option to proceed against the guarantors of Videocon, DHFL and Punj Lloyd to claim extra recovery. The ruling of the Bench that the approval of a resolution plan for the corporate debtor does not extinguish the personal guarantors’ liability which arises out of independent contract will definitely boost the confidence of bankers. Entrepreneurs now will have to think twice before signing personal guarantees.

Bhimavaram (AP)

With reference to the news report ‘Opposition parties back call for national protest day on May 26’ (May 24), it was highly disturbing to learn that 10 Central Trade Unions have also joined hands with the Opposition political parties in supporting the call given by the Samyukta Kisan Morcha (SKM) to observe a countrywide protest day on May 26, marking the completion of six months of the farmers’ protests. While one could understand the SKM's proposed game plan to treat it as 'Black Day' as the government, according to them, has miserably failed to lend an ear to their long pending demands but one fails to comprehend the rationale behind both these unions and Opposition political parties jumping into the fray.

All this could be nothing more than another attempt to corner the NDA governmentt at the Centre.That apart, one genuinely wishes that the Supreme Court soon pronounces its final verdict on this issue as the mandated ‘Expert Committee’ submitting its report. Let the curtains be drawn on this vexatious issue at the earliest.

The agitation of farmers still going on for the last six months at Delhi borders whereas the pandemic is spreading very fast and the average new cases are more than two and half lakh daily and fatalities are more than about 4,000 daily and it is expected from leaders of farmers that they should withdraw the agitation and go back to their villages.

Jalandhar

Bengaluru

If there is one environmental movement since our Independence that brought communities together at the grassroots level under the primary objective of protecting environment from the onslaught of its mindless exploitation and justifiably emerged as a role model for others to emulate, it wasthe Chipko movement that originated at Reni village in Uttarakhand in 1973. Sunderlal Bahuguna, the man who rallied people to defend the Himalayan ecosystem and scripted the success of Chipko movement, is no more.

His untiring efforts to safeguard the pristine beauty of the Himalayas and its fragile eco-system till the end came had made him a legendary environmentalist.

His death at the age of 94 has undoubtedly marked the end of idealism and inspiring activism. The message from Bahuguna that the true worth of nature doesn't lie in the profits that accrued from its exploitation but it is a life itself will continue to inspire and guide the multitudes forever.

Sholavandan (TN)

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