RECOVERY OF OUTSTANDING
In any business or commercial transactions, an individual unable to make the payment which needs to be paid within the specified time limit, then such amount will be recovered. In the case of banks, banks will recover loan amounts or EMIs when a person fails to pay his/her loan or EMI. If an individual failed to pay income tax, then the IT department will recover the entire outstanding amounts which need to be paid.
In case of any settlement in the outstanding amount by the company, parties will negotiate and settle the amount to a certain percentage agreed to both of them. If any individual is liable to pay the amount legally, he/she cannot escape; they are bound to pay the outstanding amount. The Government of India enacted the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to recover the outstanding amount.
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