SARFAESI Act

No Condonation of Delay in Filing A Securitisation Application

Fema / RBI - Article analysed impact of SC judgment on DRT power to condone delay in filing an securitization application - Section 17(1) of SARFAESI Act...

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Legal Mends & Loan Repayments: Repercussions of Debt Recovery Tribunals In India

Fema / RBI - This paper mainly discusses the scenario in the current legal system with respect to loan repayments and the laws related to them. The foundation of the debt recovery tribunals was only to ease the prompt recovery of debt payable back to Indian banks and finance house or to recover the Non- Performing Assets (NPA)...

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DRT cannot release property merely on deposit of reserve price by borrower: SC

Fema / RBI - SC clarified that banks cannot be restrained from selling the mortgaged property by holding public auction and realize the outstanding dues, unless the borrower pays entire amount outstanding along with the cost and expenses of auction....

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Maintainability of Securitisation Application-Whether Losing Possession of Immovable Property Is A Must?

Fema / RBI - Debts Recovery Tribunals (DRTs), in some recent cases, have dismissed certain Securitisation Applications (SAs) on a peculiar ground of prematurity- ‘no loss of possession of the secured asset’. In the opinion of these DRTs, where neither the symbolic nor the actual physical possession of the immovable property/secured asset was taken...

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SARFAESI: Steps to be Followed for Effective NPA Management

Fema / RBI - Securitisation and Reconstruction of  Financial Assets & Enforcement of Security  Interest Act, 2002 (SARFAESI) is basically is an act which provides different options to Banks and  Financial Institutions for resolving their non performing assets  and it is also an effective tool in the hands of the lenders to enforce the security...

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No provision to re-seal property already auctioned by nationalized banks

Fema / RBI - There is no mention of the term re-sealing of property in SARFAESI Act, 2022 and the Recovery of Debts and Bankruptcy (RDB) Act, 1993...

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SARFAESI Act, 2002: 3 month imprisonment if borrower not provide asset details

Fema / RBI - The Central Govt has initiated formulation of laws to secure prudential banking & help effect a culture of credit discipline including Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted to create a unified framework for resolving insolvency and bankruptcy matters. IBC,by adopting a creditor-in-saddle approach,with the interim...

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Control and resolution of NPAs

Fema / RBI -  The Gross Advances of Scheduled Commercial Banks (SCBs) increased from Rs.25,03,431 crore as on 31.3.2008 to Rs. 68,75,748 crore as on 31.3.2014, as per the Global Operations Data of the Reserve Bank of India (RBI). As per RBI inputs, the primary reasons for spurt in stressed assets have been observed to be, inter-alia, aggressive lendi...

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Draft ‘Fugitive Economic Offenders Bill, 2017’ -Govt invite comments

Fema / RBI - It is widely felt that the spectre of high-value economic offenders absconding from India to defy the legal process seriously undermines the rule of law in India. It is, therefore, felt necessary to provide an effective, expeditious and constitutionally permissible deterrent to ensure that such actions are curbed....

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Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011 approved

Fema / RBI - The Union Cabinet today approved introduction of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011 in the next session of Parliament. The proposed amendments would enable banks to improve their operational efficiency, deploy more funds for credit disbursement to retail investors, home loan borrowers, e...

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SARFAESI: CMM/DM not required to adjudicate disputes between Borrower/Third Party & Secured Creditor: SC

Balkrishna Rama Tarle Dead Thr LRS & Anr.  Vs Phoenix ARC Private Limited & Ors. (Supreme Court of India) - Balkrishna Rama Tarle Dead Thr LRS & Anr.  Vs Phoenix ARC Private Limited & Ors. (Supreme Court) On a fair reading of Section 14 of the SARFAESI Act, it appears that for taking possession of the secured assets in terms of Section 14(1) of the SARFAESI Act, the secured creditor is obliged to...

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Dues of Secured Creditor would prevail over State Tax Department dues: HC

Jalgaon Janta Sahakari Bank Ltd. Vs Joint Commissioner of Sales Tax (Bombay High Court) - Bombay High Court held that rights created by SARFAESI Act would have the overriding effect over any State Acts and accordingly Secured Creditor would have first right over the State Tax Departments....

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Writ Jurisdiction cannot be invoked to challenge Section 13(2) SARFAESI Notice

Rajesh Sukamaran Nambiar Vs Central Bank of India (Gujarat High Court) - In present facts of the case, the Hon’ble High Court while dismissing the Writ Petition under Article 226 held that Notice issued by Bank under Section 13(2) of the SARFAESI Act, 2002 cannot be challenged by invoking Writ jurisdiction as effective alternate remedy has been provided under Section 1...

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Alternative Remedy of Appeal under SARFAESI Act available- HC dismisses Writ Petition

Veteran Security Service Vs Union Bank of India (Gauhati High Court) - Petitioners have efficacious alternative remedy of filing appeal under SARFAESI Act before DRT and therefore writ petition is dismissed...

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HC directs UP govt to Ensure Strict Compliance with Section 14 of SARFAESI Act

Asset Reconstruction Company India Ltd. Vs State of U.P. (Allahabad High Court) - Asset Reconstruction Company India Ltd. Vs State Of U.P. (Allahabad High Court) Chief Secretary of the State of Uttar Pradesh to issue clear directions to all the concerned authorities in the State of Uattar Pradesh to comply strictly the provisions of Section 14 of the SARFAESI Act, 2002 and handov...

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Housing financial companies | Financial institutions | SARFAESI Act

Notification No. S.O. 2405(E) - (17/06/2021) - Central Government hereby specifies such housing financial companies registered under sub-section (5) of section 29A of the National Housing Bank Act, 1987 (53 of 1987), having assets worth rupees one hundred crore and above, as financial institutions for the purposes of the Securitisation and Recon...

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SARFAESI (Central Registry) (Amendment) Rules, 2020

Notification No. G.S.R. 45(E). - (24/01/2020) - Government notifies Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) (Amendment) Rules, 2020. MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 24th January, 2020 G.S.R. 45(E).—In exercise of powers confe...

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Security Interest (Enforcement) Amendment Rules, 2018

Notification No. G.S.R. 1040(E) - (17/10/2018) - Sale notice for sale of movable properties- E-Auction Sale Notice for Sale of Movable Assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with proviso to Rule 6(2) of the Security Interest (Enforcement) Rules, 2002...

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Govt amends SARFAESI notification number S.O. 2641(E), dated 05.08.2016

Notification No. S.O. 2300(E) - (06/06/2018) - Central Government hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Financial Services), number S.O. 2641(E), dated the 5th August, 2016, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (...

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SARFAESI Act 2002: Collection of taxes out of attached properties

F. No. 1(380)/DIT(R)/SARFAESI/ 17-18/ - (06/09/2017) - The SARFAESI Act has been amended on 12-08-2016 to extend the scope of the Act to provide for registration of security interest held by all other creditors, in addition to the banks and financial institutions defined as secured creditors under the Act. T...

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Recent Posts in "SARFAESI Act"

SARFAESI: CMM/DM not required to adjudicate disputes between Borrower/Third Party & Secured Creditor: SC

Balkrishna Rama Tarle Dead Thr LRS & Anr.  Vs Phoenix ARC Private Limited & Ors. (Supreme Court of India)

Balkrishna Rama Tarle Dead Thr LRS & Anr.  Vs Phoenix ARC Private Limited & Ors. (Supreme Court) On a fair reading of Section 14 of the SARFAESI Act, it appears that for taking possession of the secured assets in terms of Section 14(1) of the SARFAESI Act, the secured creditor is obliged to approach the […]...

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Dues of Secured Creditor would prevail over State Tax Department dues: HC

Jalgaon Janta Sahakari Bank Ltd. Vs Joint Commissioner of Sales Tax (Bombay High Court)

Bombay High Court held that rights created by SARFAESI Act would have the overriding effect over any State Acts and accordingly Secured Creditor would have first right over the State Tax Departments....

Read More

Writ Jurisdiction cannot be invoked to challenge Section 13(2) SARFAESI Notice

Rajesh Sukamaran Nambiar Vs Central Bank of India (Gujarat High Court)

In present facts of the case, the Hon’ble High Court while dismissing the Writ Petition under Article 226 held that Notice issued by Bank under Section 13(2) of the SARFAESI Act, 2002 cannot be challenged by invoking Writ jurisdiction as effective alternate remedy has been provided under Section 17 of the Act....

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No Condonation of Delay in Filing A Securitisation Application

Article analysed impact of SC judgment on DRT power to condone delay in filing an securitization application - Section 17(1) of SARFAESI Act...

Read More
Posted Under: Corporate Law |

Alternative Remedy of Appeal under SARFAESI Act available- HC dismisses Writ Petition

Veteran Security Service Vs Union Bank of India (Gauhati High Court)

Petitioners have efficacious alternative remedy of filing appeal under SARFAESI Act before DRT and therefore writ petition is dismissed...

Read More

No provision to re-seal property already auctioned by nationalized banks

There is no mention of the term re-sealing of property in SARFAESI Act, 2022 and the Recovery of Debts and Bankruptcy (RDB) Act, 1993...

Read More
Posted Under: Corporate Law |

Legal Mends & Loan Repayments: Repercussions of Debt Recovery Tribunals In India

This paper mainly discusses the scenario in the current legal system with respect to loan repayments and the laws related to them. The foundation of the debt recovery tribunals was only to ease the prompt recovery of debt payable back to Indian banks and finance house or to recover the Non- Performing Assets (NPA)...

Read More
Posted Under: Corporate Law |

DRT cannot release property merely on deposit of reserve price by borrower: SC

SC clarified that banks cannot be restrained from selling the mortgaged property by holding public auction and realize the outstanding dues, unless the borrower pays entire amount outstanding along with the cost and expenses of auction....

Read More
Posted Under: Corporate Law |

HC directs UP govt to Ensure Strict Compliance with Section 14 of SARFAESI Act

Asset Reconstruction Company India Ltd. Vs State of U.P. (Allahabad High Court)

Asset Reconstruction Company India Ltd. Vs State Of U.P. (Allahabad High Court) Chief Secretary of the State of Uttar Pradesh to issue clear directions to all the concerned authorities in the State of Uattar Pradesh to comply strictly the provisions of Section 14 of the SARFAESI Act, 2002 and handover physical possession of the secured [&...

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Arbitration & SARFAESI Act Proceedings can be Resorted Simultaneously

Om Prakash Kumawat Vs Rekha Kumawat (Rajasthan High Court)

Om Prakash Kumawat Vs Rekha Kumawat (Rajasthan High Court) In case of Indiabulls Housing Finance Limited , the Apex Court, after appreciating Sections 35 & 37 of the SARFAESI Act, held that arbitration proceedings and proceedings under the SARFAESI Act can be resorted to simultaneously Contention of learned counsel for the petitioners...

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