Recovery Division, Head Office
7, Bhikhaiji Cama Place, New Delhi
18.02.2016
TO ALL OFFICES
RECOVERY DIVISION CIRCULAR NO. 07/2016
Policy On Engagement of Detective Agencies
Presently, Bank has been utilizing services of the Recovery Agencies, Resolution
Agents & Supporting Agencies for resolution of NPAs. However, efficacy of these
Agencies is dependent on the following two important factors:
 Borrowers/Co-Borrowers/ Guarantors are traceable
 The securities if any, are known
2. Over a period of time it has been noted that there is sharp rise in number of
accounts in which either the borrowers/guarantors are not traceable and/or the
securities available are not known and/or the documents related to secured assets
are not enforceable in the court of law. In such a scenario the above mentioned
outsourced agencies fail to provide any respite to the Bank and it becomes quite
essential to utilize services of the Detective Agencies.
3. Statutory, Regulatory & Bank’s Guidelines- Current Scenario
“Private Detective Agencies (Regulation) Bill 2007 was introduced in
Parliament of India, Rajya Sabha on 13.08.2007 and was granted extensions
thrice for presentation of Report, last being 15.03.2009. However, till date no law
has been finalized and passed by the Parliament to govern the conduct of Detective
Agencies.
Presently, there had been no Bank’s Policy on engagement of Detective
Agencies but keeping in view the rising demand from the field, for utilization
of their services, the Policy was framed for the first time and placed to the Board
in its meeting held on 01.02.2016 and was approved vide resolution no. 46.
4. The Policy, defining objectives, role of the detective agencies, fees payable etc. and
is annexed. The Policy being introduced for the first time will remain valid
during remaining part of the current financial year and 2016-2017.
All the field official are advised to ensure meticulous compliance of the guidelines given
in the Policy and use it as an effective tool of recovery in those cases where the
whereabouts of the borrower/guarantors etc. are not known.
(V K Goyal)
Dy. General Manager
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Annexure
POLICY ON ENGAGEMENT OF DETECTIVE AGENCIES
1.
Objective
The policy aims to significantly supplement efforts of the field officials in
recovering bank‟s dues in NPA accounts by utilizing services of the Detective
Agencies:
1.1
Locate the borrower(s)/ co-borrower(s)/ guarantor(s)/ mortgagor(s), (in/outside
India) including their legal heirs who are either untraceable or not available at the
addresses given in Bank‟s records;
1.2
Ascertain latest information about their present address(es)/ occupation(s),
business(es), income streams, details of their all assets, whether charged or
uncharged, their location(whether in India or abroad), value and ownership, etc.;
1.3
Give
details
of
bank
accounts
maintained
borrower(s)/guarantor(s), including their legal heirs;
1.4
Give details of credit facilities availed/to be availed by defaulting borrower(s)/
guarantor(s) from other Banks;
1.5
Confirm present state of ownership of the secured assets by personal
visit(s)/market report, duly confirmed by the documents.
1.6
Gather any other information which the Bank cannot access by utilizing normal
channels like CIBIL/internet/local enquiries and which may be considered
necessary by the Bank for recovery of the Bank‟s dues;
2.
Eligibility criteria for allocation of accounts to Detective Agencies
All NPA accounts under any category i.e Sub-Standard, Doubtful and Loss
category (whether non-suit filed, suit filed or decreed) shall be covered by the
Policy in which engagement of detective agency is deemed appropriate, as per
the requirement.
3.1
Competent Authority for Engagement of Detective Agency
The FGM) will be the competent authority to engage any Detective Agency
(see details given below under Para for Eligibility & Procedure). On
engagement of Detective Agencies, the FGMOwill communicate contact
details of the Agencies to all the Circles and LCBs under their jurisdiction
for further conveying to the branches for utilization of their services.
3.2
Competent Authority For Assignment of task
Once an Agency has been engaged, Circle Head (FGM in case of LCBs) will
be the competent authority to assign any task to the Detective Agencies, based
on the recommendations received from the Branches. For a particular account,
Circle Head (FGM in case of LCBs) may assign the task to more than one
Detective Agency, depending upon the requirement and exigencies.
2
by
the
defaulting
Circle Office (FGM in case of LCB) must ensure that while assigning any
task, a letter must be given to the Detective Agency clearly stating the
nature of task and the fees which will be payable for that task, to avoid any
dispute/complaint at a later stage.
3.3
While giving an assignment to the Detective Agencies, the endeavour should be
that only reasonable number of assignments are given to a particular Detective
Agency depending upon their infra-structure and competence, so as to get better
results.
4.
Eligibility Criteria for Detective Agencies
Only agencies (Partnership Firms, Companies, Corporations etc.) with sufficient
means/ resources/ field experience will be considered for engagement. Since
there are no regulatory and statutory guidelines for Detective Agencies,
preferably the Agencies must be member of “Association of Private
Detectives & Investigators” of India, also known by the name APDI.
The Agency must have minimum 3 years of experience in this activity.
Further, the following factors are also to be looked into for engagement:
(i)
Past experience and competence to perform the task which can be
assigned over the contracted period.
(ii)
Financial soundness and ability to service commitments even under
adverse conditions.
(iii)
Business reputation and culture, compliance, complaints and outstanding
or potential litigation.
(iv)
External factors like political, economic, social and legal environment of
the jurisdiction in which the service provider operates and other events
that may impact service performance.
(v)
Wherever possible, the bank shall obtain independent reviews and market
feedback on the service provider to supplement its own assessment.
(vi)
It should be ensured that the Agencies carry out verification of the
antecedents of their employees, which may include pre-employment
police verification, as a matter of abundant caution.
(vii)
It shall also be ensured that the service provider‟s employees maintain
same high standard of care in performing the services as would have
been maintained by the Bank as if the activities were conducted within the
Bank.
(viii)
Agencies will put its best efforts to provide the services assigned to them
and will function in such a manner that it will not cause any business loss
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to the Bank or entail any legal or other responsibility/liability to the Bank or
its officials.
5.
(ix)
Observe the highest professional and ethical standards.
(x)
Adhere to the instructions and guidelines provided by the Bank from time
to time and not adopt or resort to any method, conduct or procedure in
contravention of any Law/Act/Rules/ Fair Practices Code/Code of Conduct
which may be issued from time to time by the Government/ RBI/Indian
Bank‟s Association or any other authority.
(xi)
Comply with RBI‟s Guidelines on Fair Practices Code for Lenders and
Guidelines on Managing Risk & Code of Conduct in Outsourcing of
Financial Services by Banks.
(xii)
The Agency shall not resort to use of coercive methods or commit any
wrongful act or offence against person/property of the borrower(s),
guarantor(s) or any other liable party(ies), while collecting the information.
The guidelines issued by the Govt/ RBI/Court, in this regard shall be
meticulously followed by the Agency. The Agency unconditionally agrees
that the Bank‟s decision in this respect shall be final and binding in regard
to the Agency‟s compliance.
Procedure for Engagement/Empanelment
Applications would be invited from interested parties through advertisements to
be placed in two local newspapers by the FGMOs, one of which should be
vernacular and placed on the Bank‟s website www.pnbindia.in also, for which
they may refer the matter to Head Office: MASD.
Applications be obtained as per the Annexure-Application. The application to
be accompanied with the photocopies of their academic qualifications, proofs of
experience, PAN Number, Address Proof and proof of membership of APDI
(wherever available) etc.
5.1
Applications for empanelment would be received at the FGMO along-with
the membership proof of APDI (Association of Private Detectives &
Investigators of India) by the applicant Agency, wherever available, PAN
Card, Proof of address etc.
5.2
2nd in command Officer at the FGMO shall co-ordinate all the activities relating to
empanelment and review.
5.3
Recommending Committee at the FGMO
Committee comprising of 2nd in command of the FGMO, AGM/Chief Manager
(Recovery Section) and Sr. Manager/ Manager (Recovery Section) shall
interview the applicants and recommend the list of eligible Agencies to the FGM.
Before recommending empanelment, an official from the FGMO or Circle Office,
to be decided by the FGM shall visit the site/office of the Agency, to
4
conduct due diligence to verify their address and infra-structure so that
Bank’s interest is not jeopardized.
5.4
Final Approval and Issue of Letter of engagement/empanelment
FGM shall be the Competent Authority to approve empanelment of the
Agencies and any decision in this regard would be final and letter of
empanelment will be issued by the FGM only.
5.5
While issuing the letter of empanelment it must be categorically mentioned that
the Agency will function in such a manner that it will not cause any business loss
to the Bank or entail any legal or other responsibility/liability to the Bank or its
officials.
5.6
Tenure of Empanelment
A Detective Agency once engaged by a FGMO will continue to be in its panel for
one year, which may be further extended on yearly basis, subject to
satisfactory performance. Performance of the Detective Agencies will be
reviewed by the FGM on annual basis, as per the feedback to be received
from the Circles/LCBs under their jurisdiction.
6.
Legal aspects/Documentation
Each Agency, so approved, shall be required to sign an „Agreement‟ given in
this Circular, which has been framed by Head Office Law Division. Such an
agreement shall be signed by the 2nd in command of the FGMO and AGM/Chief
Manager (Recovery Section) of the FGMO. The documents will be kept at the
FGMO level only.
7.
Assignment of task to Detective Agencies engaged by other FGMOs
In case in a particular account, branch requires services of Detective Agency(ies)
other than those empanelled by their FGMO, the matter shall be forwarded
to their Circle Office (FGMO in case of LCBs), who will refer it to the FGMO
and the FGM will be the competent authority to take final decision in the
matter looking into the exigencies and merits of the case.
8.
Submission of Reports by the Detective Agencies
The empanelled agencies will submit their report along-with the supporting
papers, photographs, audio/video recording etc., if any, collected by them.
9.
Time Frame for submission of reports
A time frame of maximum 60 days will be allowed to the Agency for
submission of report.
However, in emergent circumstances, further extension of 30 days (total
frame will be of 90 days) may be permitted by the Circle Head (FGM in case
of LCBs), keeping in view complexity of the case.
10.
Competent Authority for payment of fees and settlement of disputes
Incumbent Incharge of the branch will be the competent authority to
finalize the bill/claim on appropriate rates (as per Bank’s extant guidelines),
5
submitted by the Detective Agencies and its payment. The fees will be paid
on completion of the task, as per terms and conditions mentioned in the letter
issued by the Circle Office (FGMO in case of LCB) while assigning the task,
containing amount of fee payable also. In case of any dispute, Circle Head
may take the final decision, considering facts of the case and for LCBs the
concerned FGM shall be the competent authority for settlement of
disputes.
11.
Code of Commitment of Detective Agencies
11.1
Agency will function in such a manner that it will not cause any business loss to
the Bank or entail any legal or other responsibility/liability to the Bank or its
officials.
11.2
Supreme Court has cautioned the Banks against use of coercive methods for
recovery of loans and in other similar cases. Thus Detective Agency appointed
by the Bank shall ensure that no coercive method is used while collecting the
information.
12.
Fees payable to the Detective Agencies
The Agency will be paid fees on the following rates:
S.No.
Nature Of Task Assigned
Fee Payable
1.
On receipt of information about whereabouts of
the missing/absconding borrower / guarantor /
co-borrower / director etc. subject to
production of documentary proof/evidence.
2.
Rs. 7,500/- per person
subject to maximum
fee of Rs. 30,000/under this category,
per account.
Rs. 20,000/- for each
property
located,
subject to maximum
fee of Rs. 1.50 lacs
under this category
per account.
Rs. 2,500/- per piece
of information, with
maximum amount of
Rs.
10,000/per
account.
For locating properties other than details of
which are available in Bank‟s records, which
may lead to attachment of the same along-with
the documentary proof.
(All the properties in one title deed to be
considered as one property).
For providing any other information, which may
be helpful for recovery of Bank‟s dues e.g
information about other businesses, credit
facilities from other banks, accounts with other
banks including verification of present position
of properties as per Bank‟s records, subject to
production of documentary proof/evidence.
Payment of reasonable out of pocket expenses may also be sanctioned
subject to maximum of Rs. 10,000/- per account. Circe Head will be the
competent Authority to take a decision for payment of such out of pocket
expenses. The Detective Agency to give details of visits/proof of
expenditure.
In case the Detective Agency fails Maximum fee of Rs. 3,000/- per
to trace the borrower/guarantor account can be paid.
etc.
3.
4.
5.
6.
In case the Detective Agency fails Maximum fee of Rs. 7,000/- per
to trace the property.
account.
6
12.1
In exceptional circumstances, keeping in view complexities of the case, in case
Detective Agencies brings to the notice of the Circle Head/FGM(in case of LCBs)
(as the case may be) beforehand, any special efforts/expenses required, the
Circle Head/FGM (in case of LCBs) may consider sanction of maximum of
25% extra fees/reimbursement of expenses.
12.2
The above rates are inclusive of all taxes, whatsoever may be applicable.
12.3
The fees will be paid by the branches to the debit of Expenditure: Outsourcing
of Financial Services-Supporting Agencies {P & L- GL Report Code 11427
(Account No. <solid> 1142703) as mentioned in Inspection & Audit Division
Circular no.51/08 dated 18.09.2008. The expenditure incurred shall be part of
the memoranda dues and will be charged to the borrower.
12.4
In case of consortium advances cost of assignment of task to Detective
Agencies will be shared amongst the member banks, which must be
discussed during the JLMs. In case of multiple banking, endeavour must
be made for sharing of cost.
13.
Monitoring/review of Performance
The panel of Detective Agencies shall be reviewed by the Recommending
Committee of Officials at the FGMO on annual basis and place the
recommendations to the FGM for final approval, by taking the feedback from
the Circles/LCBs under their jurisdiction. However, bank has right to terminate
the contract at any time without assigning any reason. Circle Offices will
submit progress report on Detective Agencies to HO Recovery Division on
quarterly basis as per Annexure-Statement attached and send copy to their
FGMO also.
13.1. Up-dation of All India List of Detective Agencies
Circle Offices shall inform the list of approved Detective Agencies (name,
address & telephone numbers) every year to HO Recovery Division for
placing the same on Bank‟s Website so that other Circle Offices may also utilize
their services, wherever required. This list will be updated on yearly basis by
Recovery Division before 30th June.
+++++
7
Annexure-Application
APPLICATION FOR EMPANELMENT AS DETECTIVE AGENCY
S.No.
Particulars
Information about the Detective Agency
1.
Name of the Agency
2.
Address
3.
Constitution
4.
Names of
Persons
5.
Contact Numbers of the
Key Persons
6.
E-mail Address
7.
Area of Operation and
Specialization
8.
Names
of
the
Banks/Institutions/Bodies,
empanelled with
9.
Details
of
experience*
10.
Details of any special
achievement
11.
Whether
member
of
APDI (Association of
Private Detectives &
Investigators of India),
if
yes
attach
membership proof
the
Key
past
*Mention names of the institutions, number of cases handles, since when and how
many persons/properties located etc.
Place:
Date:
Name & Signature
8
Annexure-Statement
PUNJAB NATIONAL BANK
CIRCLE OFFICE/BRANCH OFFICE_____________
Date:______
PROGRESS REPORT OF DETECTIVE AGENCIES
FOR THE PERIOD* ENDED______________
S.No.
No. Of
Detective
Agencies
Engaged
Amount Of
Total No.
Number of
Commission Complaints Complaints
Paid During
Received
Redressed
The Period
Against
During the
Of Reporting Detective
Period*
Agencies
During the
Period*
(Rs. In lacs)
Name of
Reasons
Detective
For
Agencies
Delisting
Delisted
The
Detective
Agency
1.
It is confirmed that there are no pending bills of the Detective Agencies for
payment.
2.
Complaints, if any, lodged by the/ and against Detective Agencies are being
redressed immediately.
3.
Annual Review Meeting is held by the Circle Head to review the progress, for the
job/task entrusted to them.
Circle Head
==============================================================
Note*.
(i)
Period ended June will reflect progress made during 3 months
(ii)
Period ended September will reflect progress made during 6 months
(iii) Period ended December will reflect progress made during 9 months
(iv)
Period ended March will reflect progress made during 12 months
+++++++++
9
AGREEMENT
(To be stamped as an Agreement)
This Agreement is made at ...……. on this …… day of ………20......
BETWEEN
PUNJAB NATIONAL BANK, a Body Corporate, constituted under the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office
at 7, Bhikhaiji Cama Place, New Delhi – 110 607 and inter alia a Field General
Manager’s Office (FGMO) at …………………………. (hereinafter called the `Bank‟
which term shall, wherever the context so permits, mean and include its successors and
assigns) of the First Part;
AND
M/s. …………………a Partnership firm/Private Limited Company/Public Limited
Company/Corporations having its Office/Registered Office at ……………………………
(hereinafter referred to as `the Detective Agency‟/‟Agency” which expression shall,
wherever the context so permits, mean and include its successors and assigns) of the
Second Part.
Whereas the Detective Agency has approached the Bank and evidenced interest in
providing services of „Detective Agency‟ and the Bank has agreed to engage the
services of the „Detective Agency‟ in the required matters on the basis of the
representations and undertakings made by the Agency as stated hereinafter.
IT IS NOW AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS:
1.
Period of the Agreement
This agreement shall come into effect from ……………… and continue to be in
force for a period upto and inclusive of ..………… or its sooner determination in
terms hereof. The performance of the Agency shall be reviewed by the Bank on
quarterly basis. Bank may, at its sole discretion, extend and keep the agreement
alive and in force for such period(s) which the Bank considers necessary in
respect of all or any of the accounts entrusted to the Agency. In case of such
extension, the terms and conditions, as stipulated in this Agreement, shall be
applicable to the accounts for such extended time.
2.
The Service
The Agency agrees to provide to the Bank its services to:
10
3.
a)
Locate the borrower(s)/ co-borrower(s)/ guarantor(s)/ mortgagor(s), including
their legal heirs who are either untraceable or not available at the addresses
given in Bank‟s records;
b)
Ascertain latest information about their present address(es)/ occupation(s),
business(es), income streams, details of their all assets, whether charged or
uncharged, their location(whether in India or abroad), value and ownership,
etc.;
c)
Give details of bank accounts maintained
borrower(s)/guarantor(s), including their legal heirs;
d)
Give details of credit facilities availed/to be availed by defaulting borrower(s)/
guarantor(s) from other Banks;
e)
Confirm present state of ownership of the secured assets by personal
visit(s)/market report, duly confirmed by the documents.
f)
Gather any other information which the Bank cannot access by utilizing
normal channels like CIBIL/internet/local enquiries and which may be
considered necessary by the Bank for recovery of the Bank‟s dues;
by
the
defaulting
The Detective Agency’s Representations, Undertakings & Covenants
(a) The Detective Agency represents that it has complied with all legal requirements
and obtained such licenses, approvals and consents, if any, prescribed/required
under any law/rules/regulations, and keep them valid and will ensure compliance
of legal requirements, if any, from time to time.
(b) The Agency represents that it is adequately equipped, in terms of infrastructure,
manpower and expertise to provide the Service and undertakes to provide the
service all the time during the period of this agreement.
(c) The Agency represents that it alone will look after its needs as to insurance of its
representatives, its assets including vehicles, and such other needs.
(d) The Agency and their employees shall, in the course of the service:
i.
Put its best efforts to provide the services assigned to them and will
function in such a manner that it will not cause any business loss to the
Bank or entail any legal or other responsibility/liability to the Bank or its
officials;
11
ii.
Observe the highest professional and ethical standards;
iii.
Adhere to the instructions and guidelines provided by the Bank from time
to time and not adopt or resort to any method, conduct or procedure in
contravention of any Law/Act/Rules/ Fair Practices Code/Code of Conduct
which may be issued from time to time by the Government/ RBI/Indian
Bank‟s Association or any other authority;
iv.
Comply with RBI‟s Guidelines on Fair Practices Code for Lenders and
Guidelines on Managing Risk & Code of Conduct in Outsourcing of
Financial Services by Banks;
v.
The Agency shall not resort to use of coercive methods or commit any
wrongful act or offence against person/property of the borrower(s),
guarantor(s) or any other liable party(ies), while collecting the information.
The guidelines issued by the Govt/ RBI/Court, in this regard shall be
meticulously followed by the Agency. The Agency unconditionally agrees
that the Bank‟s decision in this respect shall be final and binding in regard
to the Agency‟s compliance.
vi.
The Agency represents that it is competent to enter into this Agreement
and that the information provided by it for the purpose of identification
purposes by the Bank, either in this Agreement or all the other documents
exchanged with the Bank are true & correct and nothing material has been
misrepresented or concealed therefrom.
vii.
The Agency shall accept the fee and reimbursement of expenses as per
Bank guidelines issued from time to time. No fee/ reimbursement will be
payable by the Bank for any job/task undertaken by the Agency without
written approval/consent of the Bank, to obviate the possibility of any
claim/counter-claim.
viii.
The Agency shall not do any act which shall be prejudicial to the interest
of the bank or which shall adversely affect image of the bank.
ix.
The Agency shall submit its report within reasonable time, not exceeding a
period of 60 days. The report shall be supported with relevant papers,
documents, photographs, audio/video recording etc., if any, collected by
them. In case there is conclusive and documentary proof that an Agency
has not made any efforts for completion of the assigned task within the
stipulated period i.e. within maximum period of 60 days, then no fees shall
be payable to them.
12
x.
Empanelment does not carry assured engagement of the Agency. It is
open to the bank to engage the services of any other Agency.
xi.
The Agency shall carry out its functions as per written reference made by
the Bank.
xii.
The Agency agrees to carry out its functions at its risks and
responsibilities.
xiii.
That in case constitution of Agency undergoes any change; the same shall
be informed to the Bank immediately.
xiv.
The Agency shall not accept any job in respect of the account or property
in which the Agency is having direct/indirect interest.
(e) The Agency agrees that its employees/authorized representatives engaged by it
in relation to the service to be provided to the Bank will be the sole responsibility
of the Agency as to their costs and consequences arising out of their
engagement or conduct. The Agency specifically agrees to discharge its
obligations in respect of its employees/authorized representatives in accordance
with applicable Laws including Labour Laws and in no event the Bank shall be
responsible or liable for such liabilities towards the employees, authorized
representatives of the Agency. Further, the Agency, its partners, employees,
authorized representatives, shall not be entitled to claim employment in the Bank
or make any similar or analogous claims against the Bank.
It is understood that the Bank shall not be liable to pay any remuneration or
compensation to the Agency or any of the personnel engaged by the Agency in
relation to the Service except the fee payable to the Agency as per Bank‟s
guidelines issued from time to time. The Agency will be paid fees on the following
rates:
S.No.
Nature Of Task Assigned
Fee Payable
1.
On receipt of information about whereabouts of
the missing/absconding borrower / guarantor /
co-borrower / director etc. subject to
production of documentary proof/evidence.
Rs.
7,500/per
person subject to
maximum fee of Rs.
30,000/- under this
category,
per
account.
2.
For locating properties other than details of Rs. 20,000/- for each
located,
which are available in Bank‟s records, which property
13
may lead to attachment of the same along-with subject to maximum
fee of Rs. 1.50 lacs
the documentary proof.
per account.
(All the properties in one title deed to be
considered as one property).
Rs. 2,500/- per piece
of information, with
maximum amount of
Rs.
10,000/per
account.
3.
For providing any other information, which may
be helpful for recovery of Bank‟s dues e.g
information about other businesses, credit
facilities from other banks, accounts with other
banks including verification of present position
of properties as per Bank‟s records, subject to
production of documentary proof/evidence.
4.
Payment of reasonable out of pocket expenses may also be
sanctioned subject to maximum of Rs. 10,000/- per account. Circe
Head will be the competent Authority to take a decision for payment of
such out of pocket expenses. The Detective Agency to give details of
visits/proof of expenditure.
5.
In case the Detective Agency fails Maximum fee of Rs. 3,000/- per
to trace the borrower/guarantor account can be paid.
etc.
6.
In case the Detective Agency fails Maximum fee of Rs. 7,000/- per
to trace the property.
account.
12.1
In exceptional circumstances, keeping in view complexities of the case, in case
Detective Agencies brings to the notice of the Circle Head/FGM (as the case may
be) beforehand, any special efforts/expenses required, the Circle Head/ FGM
may consider sanction of maximum of 25% extra fees/reimbursement of
expenses.
12.2
The above rates are inclusive of all taxes, whatsoever may be applicable.
4.
Confidentiality & Ownership
The Agency shall:
i.
Treat all information (whether verbal, written or otherwise) and materials
(whether in hard form such as papers, documents or soft form such as
electronic data, floppies or cassettes) received from the Bank in relation to the
service as confidential; That it shall not divulge the information received from
the Bank/gathered during the course of performing its functions to any one;
ii.
Exercise utmost care in preserving the confidentiality of such information and
material;
14
iii.
Not disclose or pass on or cause to be disclosed or pass on such information
or material to any others ;
iv.
Return or destroy such information and material to the Bank as and when and
in the manner required by the Bank;
v.
Preserve documents and/or data in accordance with the legal/ regulatory
obligation of the Bank;
vi.
The Bank shall retain ownership of the copyright and all other intellectual
property rights in the Confidential Information, whether oral or tangible and in
the product of the Services, including ownership of the report of the Agency
and the working papers. The Agency shall not be entitled to use or share any
confidential information contained in the product of the Services which shall
remain Bank‟s property.
vii.
The Agency agrees and undertakes that it shall exercise due care and
caution to protect the information which a reasonable and prudent person
would exercise to protect and maintain the confidentiality of information and
prevent the unauthorized use or disclosure of such information to third
party(ies).
viii.
All information/ documents provided by the bank to the Agency shall remain
the property of the bank and nothing therein shall be construed as granting or
conferring any rights in/on such information/documents to the Agency or any
third party.
ix.
The obligation of the Agency to keep the information undisclosed to others
shall continue and survive even after termination of the arrangement.
x.
The Agency shall not disclose in any external communication the fact that the
it has rendered services to the Bank by identifying the name of the Bank and
shall not reproduce the Bank‟s Logo or other Registered Trade Marks in the
Agency‟s external communication or in any form or medium. The Bank
disclaims all responsibilities or liability for any costs, damages, losses,
liabilities, expenses incurred by anyone as a result of circulation, publication,
reproduction or use of any reports contrary to the provision of this Paragraph.
xi.
The Agency, upon termination of the arrangement by the bank, shall promptly
return all copies of information/documents in whatever form or media, to the
bank or to any person authorized by the bank or at the discretion of the bank
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destroy the same without retaining any copies thereof. The Agency shall
certify in writing to the Bank of such return or destruction.
5.
Delisting/Depanelment
i.
In case services of Agency are not found satisfactory, the Bank may de-list/ depanel its name from the approved panel and the bank shall be entitled to
terminate the arrangement without assigning any reason at any time after issuing
notice and it will come into effect as stated therein.
ii.
In the event of termination of agreement with the Agency due to non- observance
of terms & conditions, the Agency hereby agrees and gives its consent to Bank to
exchange information with other Banks, Financial Institutions, NBFCs directly or
through the medium of RBI, IBA or any other institution or association about its
particulars i.e. name, address and other details including causes for delisting,
depanelment on account of non-adhering to Clause (3(d) or 4) or owing to any
other reason, including briefing the description of the incident.
iii.
If, for any reason whatsoever, the Bank decides not to maintain any panel or
discontinue the panel, the Agency shall have no grievance against the Bank and
the Bank shall not be liable in any manner whatsoever.
6.
Relationship
i.
It is agreed and understood by the parties that neither the Agency nor any of the
personnel engaged by it for the purpose of the Service [including its owner(s),
director(s), partner(s), employees(s) and representative(s)] shall have employeeemployer relationship with the Bank.
ii.
The Agency will ensure due diligence of the personnel who will represent the
agency for collection of the information including pre-employment Police
verification and re-verification after two years and will submit confirmation as also
names, bio-data and other details (as may be required by the Bank) along with
photograph of such representative(s) to the Bank, duly attested by the Agency
itself.
7.
Force Majeure
The Bank shall not be held responsible for any loss/damage which may be
incurred by the detective agency as a result of such “Force Majeure Event”.
Each party will give notice to the other as soon as possible upon becoming
aware of any event that may lead to invocation of the clause. If the “Force
Majeure Event” continues for more than 30 days, the Bank shall be entitled to
terminate this agreement at any time thereafter. Neither party shall have any
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penal liability to the other in respect of termination of this agreement as a result
of “Force Majeure Event. However, Detective Agency shall be entitled to receive
the remuneration for any services actually rendered upto the date of termination
of this agreement.
8.
The Agency’s Indemnity and Assurance
The Agency hereby expressly agrees to indemnify the Bank, its Directors/Officers
and keep the Bank indemnified against all losses, liabilities or obligations arising
out of its conduct or that of any of the personnel {including its owner(s),
director(s), partner(s), employee(s) & representative(s)} in connection with the
Service and this agreement. It also agrees to indemnify the Bank against all
action(s)/inaction(s) which result in diminishing the realizable value of the assets
or non-compliance of RBI guidelines or which exposes the Bank to claim from the
Borrower(s)/ guarantor(s) or any other party(ies), including damages, costs,
expenses, charges, fees, fines etc. incurred/to be incurred or suffered by the
Bank in defending criminal proceedings against the Bank or its officials where
such action(s) arise solely on accounts of action(s)/inaction(s) on the part of the
Agency, its employees, agents or authorized representatives.
9.
General Conditions
a) The Bank shall, as and when it desires to avail the service of the Agency, advise
and authorize it to collect the information about the liable parties.
b) The Agency shall not engage any person other than whose name(s) are informed
to the Bank as aforesaid for the collection.
c) In the event of any person ceasing to be in service of the Agency for collection of
such information, the Agency shall inform the Bank forthwith details of such
cessation.
d) The Agency or its representatives shall not accept or collect any amount in any
form from the borrower or any other liable party(ies).
e) This agreement shall stand terminated in the event of any of the Agency‟s
Representations and undertakings being or becoming incorrect or untrue; breach
of the Agency to observe any of the terms and conditions contained herein or
under any of the terms of request and authorization issued by the Bank in
pursuance hereof or under any other agreement entered by the Agency or any of
its personnel (including owner(s), director(s), partner(s), employee(s) &
representative(s),any specific instruction from RBI or from any competent
authority.
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f) The Bank shall have the right to terminate this agreement by giving 30 days
notice to the Agency if his performance is considered by the Bank inadequate/
unsatisfactory.
g) This Agreement can also be terminated by the Bank at any time with prior notice
of 30 days and without assigning any reason whatsoever.
h) Notwithstanding the termination of this Agreement, the liability undertaken by the
Agency prior to the date of termination of this Agreement relating to
confidentiality and severability (clause______) shall survive even after
termination of this Agreement. The liability of the Agency shall also survive in
case where the liability is incurred by the Bank after termination of this
Agreement, but the liability arises out of act(s)/omission(s) of the Agency when
this Agreement was in force.
i) The Agency agrees that the Services rendered by it are not assignable. They
shall not further delegate the job assigned to it by the Bank to any other agency
without obtaining prior written consent of the Bank. However, the Bank shall have
the right to transfer, assign or sell all its rights, benefits or obligations to any
person and these terms and conditions mentioned under this Agreement shall
continue to be in force (if expressly agreed to by the successors and assigns)
and effect for the benefit of the successors and assigns of the Bank.
j) In case of any contravention of any obligation on the part of Agency, the Agency
shall be liable for the damages including special damages as demanded by the
bank.
k) That the Bank reserves the right to take appropriate legal action including
filing/lodging complaint to the professional body, if there is any misconduct on the
part of the Agency or information submitted by it to the Bank is found incorrect or
false. This shall be without prejudice to bank‟s right to delist/de-panel the Agency
from its panel.
10.
Contingency Plans & Continuity Arrangements
a) The Detective Agency shall arrange and ensure proper contingency plans to
meet any unexpected obstruction to the agency or any employees in rendering
the services or any part of the same under this agreement to the bank.
b) The Detective Agency agrees to the following continuity arrangement to ensure
business continuity of the Bank:
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i.
In the event this agreement comes to an end on account of termination or by the
expiry of the term/renewed term of the agreement or otherwise, the Agency shall
render all assistance and help to the bank and to any new agency engaged by
the Bank for the smooth switch and continuity of the services.
ii.
In the event of failure of the agency to render the service, without prejudice to
any other right the Bank shall have as per this agreement, the Bank its sole
discretion may get the services from any other Agency. The Agency shall be
liable to reimburse the expenses, if any, incurred by the Bank in availing such
services from the other agency.
11.
Severability
Notwithstanding that whole or any part of any provision of this agreement may
prove to be illegal or unenforceable, the other provisions of this agreement shall
remain in full force and effect.
12.
Notices
Any notice required under this agreement shall be given in writing by Registered
Post or Speed Post/Facsimile/Courier and sent to the address(es) as mentioned
in the Agreement. In case of change of notice with regard to service of notice,
each party shall notify in writing to the other about such change of address.
13.
Applicable Law and Jurisdiction
All disputes or differences whatsoever arising between the parties shall be settled
amicably. If, however, the parties are not able to solve them amicably, the same
shall be settled by arbitration in accordance with the Arbitration and Conciliation
Act 1996 and the award made in pursuance thereof shall be binding on the
parties. The Arbitrator/ Arbitrators shall give a reasoned award. Any appeal will
be subject to exclusive jurisdiction of courts where this agreement is executed.
This agreement and any matters relating to this agreement shall be governed by
and construed in accordance with Indian laws. The parties submit and agree to
the exclusive jurisdiction of the Courts where this agreement is executed.
In witness whereof, the parties hereto have signed this Agreement through their
authorized representatives on the day, month and year mentioned herein above.
Bank
Detective Agency
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