Srishti Bansal

Banks Statutory Right to forfeit money under Rule 9(5) of SARFAESI Rules 2002: Central Bank of India Vs. Shanmugavelu – By Adv. Srishti Bansal

In the present case, the  Hon’ble Supreme Court (Apex Court) adjudicated upon following issues:

i) whether the forfeiture of the earnest money deposit under Rule 9(5) of the SARFAESI Rules can be only to the extent of loss or damages incurred by the bank in accord with the underlying provisions of Section 73 and 74 of the Indian Contract Act 1872;

ii) whether the quantum of forfeiture under the SARFAESI rules is limited to the extent of debt owed; and

iii) whether a case of exceptionable circumstances could be said to have been made out by the respondent to set aside the order of forfeiture of the earnest money deposit?

Banks Statutory Right to forfeit money under Rule 9(5) of SARFAESI Rules 2002: Central Bank of India Vs. Shanmugavelu – By Adv. Srishti Bansal Read Post »

Procedure for Sale of Immovable Assets under SARFAESI Act 2002

SARFAESI stands for Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. As the name itself suggests it is a legislation to regulate securitization and reconstruction of financial assets and enforcement of security interest and for matters connected therewith or incidental thereto.

The main objective of the act is to provide rapid recovery of non-performing assets of the banks and financial institutions efficiently and secondly, it allows banks and financial institutions to auction the secured asset when the borrower fails to repay the outstanding dues.

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