Excelsior Correspondent
JAMMU, Sept 9: Aryans College of Law, Rajpura, near Chandigarh organized a webinar on ‘An outline introduction to Sarfaesi Act-2002’.
Bhagyashri Setia, Advocate, Punjab & Haryana High Court, Chandigarh interacted with the students of LL.B & BA-LL.B.
Dr. Anshu Kataria, Chairman, Aryans Group of Colleges presided over the event.
Setia while interacting with students said, the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 is known as SARFAESI Act and it allows banks and other financial institution to auction properties to recover loans.
“The first asset reconstruction company of India, ARCIL, was set up under this Act,” added Setia.
She further said that under this Act secured creditors have much right for enforcement of security interest under section 13 of this Act.
“If borrower of financial assistance makes any default in repayment of loan or any installment and his account is classified as non-performing asset by secured creditor, then secured creditor may require before expiry of period of 60 days to discharge their liability or pay off their debt by written notice,” she maintained.
“Under these provisions, the banks may issue notices in writing to the defaulting borrower insisting the discharge of liabilities within 60 days. The provisions of this Act apply to outstanding loans (above Rs. 1 lakh), which are classified as non-performing assets,” Setia said.
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