Interpretation of section 31 of srfaesiact
prasanta kumar parida
(Querist) 22 October 2011
This query is : Resolved
A LAND WAS GIVEN ON LEASE EXECUTING REGISTERED LEASE DEED, WITH A SPECIFIC CONDITION THAT, THE LAND CAN NOT BE TRANSFERRED IN ANY FORM. IF FOR SOME EXTRANEOUS REASON, SUCH A LEASE HOLD PROPERTY IS MORTGAGED AS A SECURITY WITHOUT SPECIFIC PERMISSION OF THE LESSOR WHETHER SECTION 31 OF SRFAESI ACT WILL BE APPLICABLE IN THAT CASE OR NOT? IF NOT,THEN WHY& HOW
Nadeem Qureshi
(Expert) 22 October 2011
Dear Prasanta
according to section 31 SARFAESI ACT
Provision of this act shall not apply in certain cases:
(e) any conditional sale, hire purchase, or lease or any other contract in which no security interest has been created.
so as per this section the act shall not apply on lease property. but in which no security interest will be created.
the word created security interest has very wide meaning.
prabhakar singh
(Expert) 24 October 2011
WHILE MR. NADEEM IS RIGHT,it should otherwise
also be borne in mind that title of property always vest in owner,the lessor,without whose consent no such obligation or burden can be created on leased property wherein lessee has limited personal interest of user of property only.
prasanta kumar parida
(Querist) 24 October 2011
MR. PRABHAKAR SIR,I WAS JUST WAITING FOR SOME TIPS EITHER FROM U OR MR. DHINGRA WHO REALLY DESERVE TO GO TO THE HALL OF FAME NOT ONLY FOR THEIR KNOWLEDGE BUT THEIR DESIRE TO SHARE THE KNOWLEDGE WITH OTHER CLUB EXPERTS & MEMBERS.BUT I WILL BE OBLIGED IF ANY REFERENCE TO SC RULING IS PROVIDED, BECAUSE THE CASE IS NOW AT THE STAGE OF HEARING ON ADMISSION IN THE HON'BLE HIGH COURT
