Indian Law firm/ Lawyer for online legal help: Lawyers Network provides
online legal help in India, Our network of foreign law firms associates in
30 countries for help in immigration, trade disputes, arbitrations, joint
ventures & new business abroad. Identify your Lawyer/ Advocate for legal
services: Ahmedabad, Agra, Patna, Ranchi, Bombay, Amritsar, Bangalore, Baroda,
Chandigarh, Chennai, Coimbatore, Cochin, Calcutta, Surat, Nagpur, Madurai,
Delhi , Gurgaon , Goa, Hyderabad, Jaipur, Jalandhar, Kanpur, Kochi, Kolkata,
Lucknow, Mumbai, Pune, Trivandrum/ Thiruvananthapuram.
The Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest act extends to the whole of India
Under section 69 of Transfer of Property Act, mortgagee can take
possession of mortgaged property and sale the same without intervention
of Court only in case of English mortgage. (English Mortgage is
where mortgagor binds himself to repay the mortgaged money on a
certain date, and transfers the mortgaged property absolutely to
the mortgagee, but subject to a proviso that he will re-transfer
the property to the mortgagor upon payment of the mortgage money
as agreed). In addition mortgagee can take possession of mortgaged
property where there is a specific provision in mortgage deed and
the mortgaged property is situated in towns of Kolkata, Chennai
or Mumbai. In other cases possession can be taken only with the
intervention of court.
Therefore till now Banks/Financial Institutions had to enforce
their security through court. This was a very slow and time-consuming
process. There was also no provision in any of the present law in
respect of hypothecation, though hypothecation is one of the major
security interest taken by the Bank/Financial Institution.
Keeping in mind the above factors among many other the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security
Interest Act was enacted with effect from 21.6. 2002.
The Act deals with three aspects.
Enforcement of Security Interest by secured creditor (Banks/Financial
Institutions)
Transfer of non- performing assets to asset reconstruction
company, which will then dispose of those assets and realise
the proceeds.
To provide a legal framework for securitisation of assets.
This web site is designed for general information
only. The information presented at this site should not be construed to be formal
legal advice nor the formation of a lawyer/client relationship. Persons accessing
this site are encouraged to seek independent counsel for advice regarding their
individual legal issues or consult one of the experts online.
