Sarfaesi Act, 2002
Querist :
Anonymous
(Querist) 07 January 2010
This query is : Resolved
who are the enforcement agencies under the Sarfeasi Act.
Also are there any specification for approved valuers
J.D.Sharma
(Expert) 07 January 2010
i think you mean THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL
ASSESTS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 by sarfeasi act.
as per section 13 of the act the security creditor is itself empowered by the act to enforce any security interest created in his favour and that too without any intervention of court or tribunal.
sec 13 --13. Enforcement of security interest
(1) Notwithstanding anything contained in section 69 or section 69A of the Transfer of Property Act,
1882 (4 of 1882), any security interest created in favour of any secured creditor may be enforced, without the
intervention of court or tribunal, by such creditor in accordance with the provisions of this Act.
(2) Where any borrower, who is under a liability to a secured creditor under a security agreement,
makes any default in repayment of secured debt or any instalment thereof, and his account in respect of such
debt is classified by the secured creditor as non-performing asset, then, the secured creditor may require the
borrower by notice in writing to discharge in full his liabilities to the secured creditor within sixty days from the
date of notice failing which the secured creditor shall be entitled to exercise all or any of the rights under subsection.
sec 14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking
possession of secured asset
sec 17 deals with right of appeal which lies before Debt recovery tribunal and as per sec 18 a further appeal lies to appellate tribunal("Appellate Tribunal" means a Debts Recovery Appellate Tribunal established
under sub-section (1) of section 8 of the Recovery of Debts Due to Banks
and Financial Institutions Act, 1993 (51 of 1993);)
jurisdiction of civil courts has been expressly barred to try and entertain any suit or proceeding which which a Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under this Act to determine
and no injunction shall be granted by any court or other authority in respect of any action taken or to be
taken in pursuance of any power conferred by or under this Act or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
and under sec 30. Cognizance of offence
No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall
try an offence punishable under this Act.
Raj Kumar Makkad
(Expert) 07 January 2010
No reason to to have different opinion as of Sharma.
