Section 14 of SARFAESI Act, 2002 is only an enabling provision which comes into play only after the defaulting borrower has failed and/or neglected to discharge in full its liability to the secured creditor and is limited to providing assistance to the secured creditor to recover possession of secured asset against non-co-operative borrowers that all – Authorized Officer, I.D.B.I Bank Ltd Vs. The State of Maharashtra – Bombay High Court
July 19, 2022
It is also essential to note that Chapter III of the SARFAESI Act is for “Enforcement of Security Interest” and Section 13 specifically provides for a secured creditor to enforce the security interest created in its favour without the intervention of the court or tribunal. The secured creditor under Section 13 (3A) has a right to make any representation or raise any objection on receipt of a demand notice. Section 14 is only an enabling provision which comes into play only after the defaulting borrower has failed and/or neglected to discharge in full its liability to the secured creditor and is limited to providing assistance to the secured creditor to recover possession of secured asset against non-co-operative borrowers that all.
