Important Section DRT Debt Recovery Tribunal DRAT Debt Recovery Appellate Tribunal

Important Section DRT Debt Recovery Tribunal DRAT Debt Recovery Appellate Tribunal

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 is an Indian law that provides for the securitisation of financial assets of banks and financial institutions and for the reconstruction of such assets. The act aims to provide a legal framework for the securitisation and reconstruction of financial assets and for the enforcement of security interest created in respect of such assets.

The act enables banks and financial institutions to take over the assets given as collateral for loans in case of default and recover their debts through sale of such assets. The act provides a simplified and time-bound process for the recovery of debts, thereby reducing the burden on the banking system and improving the flow of credit to productive sectors.

Important Section of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 is an important law in India for the securitisation of financial assets and enforcement of security interest created in respect of such assets. Some of the important sections of the act are:

  1. Section 13: This section provides for the enforcement of security interest without the intervention of the court or tribunal.
  2. Section 14: This section provides for the powers of the authorized officer to take possession of the securities and manage the same.
  3. Section 17: This section provides for the sale of the securities by the authorized officer.
  4. Section 18: This section provides for the powers of the authorized officer to take over the management of the borrower’s business.
  5. Section 19: This section provides for the powers of the authorized officer to transfer the securities by way of lease, assignment or sale.
  6. Section 21: This section provides for the powers of the authorized officer to dispose of the securities.
  7. Section 22: This section provides for the rights of the borrower and the guarantor against the enforcement of security interest.
  8. Section 24: This section provides for the penalties for making false statements and misusing the provisions of the act.

These sections provide the framework for the enforcement of security interest and the securitization of financial assets, and are an important tool for banks and financial institutions to recover their debts in a quicker and simpler manner.

The Recovery of Debts Due to Banks and Financial Institutions Act 1993

The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) is an Indian law that provides for the recovery of debts owed to banks and financial institutions in India. The act provides for the establishment of Debt Recovery Tribunals (DRTs) to deal with the recovery of debts due to banks and financial institutions. The act provides a quicker and simpler procedure for the recovery of debts and helps in reducing the burden on the banking system.

Under the RDDBFI Act, a bank or financial institution can file a claim in the DRT for recovery of debt. The DRT hears the matter and passes an award in favor of the bank or financial institution if it finds that the debt is due and payable. The act also provides for an appeal against the award passed by the DRT to the Debt Recovery Appellate Tribunal (DRAT). The act thus provides a quick and effective mechanism for the recovery of debts due to banks and financial institutions.

Important Section of Recovery of Debts Due to Banks and Financial Institutions Act 1993

The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) is an Indian law that provides for the recovery of debts owed to banks and financial institutions in India. Some of the important sections of the act are:

  1. Section 3: This section provides for the establishment of Debt Recovery Tribunals (DRTs) to deal with the recovery of debts due to banks and financial institutions.
  2. Section 17: This section provides for the powers of the Debt Recovery Tribunal (DRT) to enforce the award passed by it.
  3. Section 18: This section provides for the right of appeal against the award passed by the DRT to the Debt Recovery Appellate Tribunal (DRAT).
  4. Section 19: This section provides for the powers of the DRAT to hear appeals against the awards passed by the DRT.
  5. Section 25: This section provides for the recovery of debts by attachment and sale of assets of the borrower.
  6. Section 28: This section provides for the penalties for making false statements and misusing the provisions of the act.

These sections provide the framework for the recovery of debts due to banks and financial institutions, and are an important tool for banks and financial institutions to recover their debts in a quicker and simpler manner.

The Insolvency and Bankruptcy Code 2016

The Insolvency and Bankruptcy Code, 2016 (IBC) is a comprehensive law aimed at consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, individuals, and partnership firms in India. The code provides a time-bound process for the resolution of insolvency and provides for the recovery of debts.

The IBC replaces several existing laws, including the Sick Industrial Companies (Special Provisions) Act, 1985, the Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920. The code provides a framework for the resolution of insolvency and provides for the recovery of debts, both by individuals and corporate entities.

The IBC provides for the appointment of Insolvency Professional Agencies to manage the resolution process, and for the creation of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) to hear and dispose of matters related to the resolution process. The code provides for a time-bound resolution process and aims to ensure a balance between the interests of all stakeholders, including creditors, debtors, and employees.

Important Section of The Insolvency and Bankruptcy Code 2016

The Insolvency and Bankruptcy Code, 2016 (IBC) is a comprehensive law aimed at consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, individuals, and partnership firms in India. Some of the important sections of the act are:

  1. Section 7: This section provides for the initiation of the Corporate Insolvency Resolution Process (CIRP) by a financial creditor.
  2. Section 9: This section provides for the initiation of the CIRP by an operational creditor.
  3. Section 12: This section provides for the appointment of an Interim Resolution Professional (IRP) to manage the affairs of the corporate debtor during the resolution process.
  4. Section 16: This section provides for the powers of the IRP and the committee of creditors.
  5. Section 30: This section provides for the appointment of a resolution professional to manage the resolution process.
  6. Section 31: This section provides for the duties and responsibilities of the resolution professional.
  7. Section 33: This section provides for the submission of a resolution plan by the resolution applicant.
  8. Section 35: This section provides for the approval of the resolution plan by the committee of creditors.
  9. Section 43: This section provides for the transfer of property of the corporate debtor to the resolution applicant.

These sections provide the framework for the resolution of insolvency and bankruptcy and are an important tool for creditors to recover their debts in a time-bound manner. The IBC also provides for a balanced approach towards the resolution of insolvency, taking into account the interests of all stakeholders, including creditors, debtors, and employees.

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