BANKS/FINANCIAL INSTITUTIONS MUST TRY TO MAXIMIZE THE BORROWERS SECURITIES RATHER THAN ATTEMPTING TO MINIMIZE ITS LOSSES : DELHI HC Justice Asha Menon in the case of Pushpa Builders Ltd. v The Vaish Cooperative Adarsh Bank Ltd. has laid down that an obligation vests with banks and financial institutions to maximize the value of securities transferred to them by borrowers instead of focusing on attempting to minimize its losses. She also stated that when collaterals and securities furnished by the borrowers are up for sale to recover dues, the financial creditors have a responsibility to get a reasonable and market value for the aforementioned collateral security. They also have a further duty to maintain the collateral and keep it in good condition and not allow it to go to waste. Low prices yielded by distress sales are illegal and not just discouraged by courts. Reddy and Reddy Law Firm comprises of a skilled team of legal professionals ready to assist you in all disputes relating to commercial law.