Section 14 SARFAESI Act, 2002 is a potent weapon in the armoury of Banks and Financial Institutions. This provision is being invoked by the Secured lenders quite frequently and the Debt Recovery Tribunals are flooded with the Petitions filed under Section 17 of SARFAESI Act, 2002 which provides a remedy to the aggrieved person to challenge the validity of the measures taken by the Secured Creditors under Section 14 of the SARFAESI Act, 2002.
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Discussion Paper on measures for increasing the possibility of resolution, value of resolution plan and enabling timely resolution – IBBI dated 07.06.2023
This paper analyses resolution processes that have been completed and are ongoing, presents the understanding of issues that are adversely affecting the efficiency and effectiveness of the resolution process. The issues are of a wide spectrum and proposals have been made to resolve the same. - 1. Timeline for providing information for assignment of debt. 2. Seeking information from personnel of the corporate debtor. 3. Modification of Timelines for Submission and Consolidation of Claims. 4. Increase of duties of AR, Increase of fee of Authorised Representative, Replacement of authorised representative 5. Inclusion of Relevant Minutes in Form H. 6. Addressing the Aspect of Limitation in Applications for initiation of insolvency resolution proceedings. 7. Favourable voting on more than one resolution plan. 8. Changes in timelines. 9. Audit Requirement for Insolvency Resolution Process Cost (IRPC) in certain CIRPs
The NCLT, the NCLAT and their Contempt Proceedings – By Naman
The question of whether the NCLT and NCLAT have the power to initiate contempt proceedings is a complex one. While there are arguments in favour of conferring this power on the NCLAT, there is no clear precedent on this issue. Several benches of NCLT, on the other hand, have held that they do not have the powers to initiate contempt proceedings.