SARFAESI act and CERSAI registration
2 years ago
i was a director of a pvt ltd company ,this company given their only property of 11 cents and a building as collator security to a scheduled bank , for Another company owned by many persons , the primary security is telecasting equipment , the principal borrower and its then signatories were not touched . the said property is NOT registered with CERFASI, bank auctioned and sale letter issued ,not registered, Can the bank act on sarfacy act with out registering with CERSAI
A.Dear Sir,
Without such registration there is a legal lacuna and you can fight on that ground and seek cancellation of such public auction. To get more effective advise you have to share more details with any of the legal experts who are nearer to you.
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Without such registration there is a legal lacuna and you can fight on that ground and seek cancellation of such public auction. To get more effective advise you have to share more details with any of the legal experts who are nearer to you.
Rate me Five Star*
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Although the institutions notified under the SARFAESI Act have to mandatorily register with CERSAI, the records of the mortgages created in their favour by deposit of title deeds, those not notified under SARFAESI Act are not debarred from filing the records with CERSAI.
If you find my answer helpful then kindly rate me.
Although the institutions notified under the SARFAESI Act have to mandatorily register with CERSAI, the records of the mortgages created in their favour by deposit of title deeds, those not notified under SARFAESI Act are not debarred from filing the records with CERSAI.
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A.Hi,
In case security interest is created but not registered with CERSAI, the same cannot be enforced under SARFAESI Act. However, this does not debar the secured creditor from enforcing the security under other laws such as Insolvency and Bankruptcy code.
If you find my answer helpful then kindly rate me.
In case security interest is created but not registered with CERSAI, the same cannot be enforced under SARFAESI Act. However, this does not debar the secured creditor from enforcing the security under other laws such as Insolvency and Bankruptcy code.
If you find my answer helpful then kindly rate me.
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A.After the coming of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016. (w.e.f. 24-1-2020) it is mandatory for the banks to maintain the details with the CERSAI within 30 days from the date of creating the security. It is just about creating the data whether the bank can take action under SARFAESI without registration or not is not mentioned there.
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