News items on 11th Dec 2012 say that the Enforcement of Security Interests and Debt Recovery Laws Amendment Bill has been cleared by the Lok Sabha.
The Bill is insignificant, and makes minimum amendments to the SARFAESI Act.
One amendment, for example, relates to multi-state cooperatives, which, owing to certain court rulings, were currently excluded from the purview of the law.
Yet another amendment is the right of a secured creditor to file a caveat before DRTs, so that borrowers do not obtain ex parte stay.
Yet another amendment allows an ARC to convert debt into equity.
Text of the Bill is here: http://www.prsindia.org/uploads/media/Enforcement/Enforcement%20of%20Security%20Interest%20and%20Recovery%20of%20Debts%20Laws%20Amendment)%20Bill%202011.pdf
The Bill is insignificant, and makes minimum amendments to the SARFAESI Act.
One amendment, for example, relates to multi-state cooperatives, which, owing to certain court rulings, were currently excluded from the purview of the law.
Yet another amendment is the right of a secured creditor to file a caveat before DRTs, so that borrowers do not obtain ex parte stay.
Yet another amendment allows an ARC to convert debt into equity.
Text of the Bill is here: http://www.prsindia.org/uploads/media/Enforcement/Enforcement%20of%20Security%20Interest%20and%20Recovery%20of%20Debts%20Laws%20Amendment)%20Bill%202011.pdf
Not only Bill is passed by both houses it has got assent of the President and Notification is also passed on 04/01/2013.
ReplyDeleteSignificant amendments are Multi State Co-op. Banks are brought under the perview of SARFAESI Act whereas Supreme Court was granting liberal EX Parte Stay and number of matters were just kept pending without any hearing in the matter stonewalling recoveries of Co-operative Banks running into Thousands of Crores for more than 4 -5 years. Now Co-op Banks will also come under perview of SARFAESI Act. Multi State Co-op Banks can have choice to either go for recovery under Multi State Co-op Societies Act 2002 or DRT Act 1993. Number of Adjournments are reduced to three or maximum six. Banks can bid for the immovable properties and can purchase same if there are no bidders and sell it later to book profit. Another significant change is reduction of consent of 3/4th secured Creditors in consortium finance to 60 per cent.Another significant amendment is about issue of notification by Central govt. making the Act applicable to certain class of Banks in public interest with such exceptions,modification and adaptations as may be specified in notification. Hence now all litigations pending with Supreme Court against applicability of SARFAESI Act to Co-op Banks will get dismissed paving speedy recovery of Debt due to Banks ( Co-op.Banks)
Thank you so much for your views. Could you please let us know where can we access the proposed changes? Is it the bill no. 122/2011?
DeleteThanks - you came as anonymous visitor; would have been better to have your contacts, as you are surely an enlightened visitor. Thanks once again.
ReplyDeleteThank u for creating a platform thro blog upon securatizn
DeleteDear sir,
ReplyDeleteI would like to know whether a bank is allowed to amend its original application based on discrepancies that have been brough to the DRT's notice through the written statement of the defendants?
Also, I would like to know the procedure to be followed by defendants if the NPA date provided in the securitisation notice and original application are different.
Thanks in advance.
Allahabad HC Judgement stays proceedings of sarfaesi act 23.09.2013
ReplyDeletehttp://elegalix.allahabadhighcourt.in/elegalix/WebShowJudgment.do
HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
Court No. - 24
Case :- MISC. BENCH No. - 8486 of 2013
Petitioner :- Ravi Pratap Singh
Respondent :- State Of U.P.Thr.Secy.Cooperative Societies,Lucknow & Others
Counsel for Petitioner :- Santosh Mishra
Counsel for Respondent :- C.S.C.,Sanjay Kumar Srivastava
Hon'ble Rajiv Sharma,J.
Hon'ble Dr. Satish Chandra,J.
Application for impleadment and application for amendment of the writ petition filed today are admitted to record.
Counsel for the respondents submits that he has no objection in case both the above applications be allowed.
I would like to know whether this Act is applicable to NBFCs, and if so whether they can take possession of the secured Assets under this Act, with all rights enjoyed by Banks.
ReplyDeletePeople are here because they care about the subjects and want stimulation, not because they are looking to make a statement about their own centrality in the field. multi state cooperative society
ReplyDelete