Security interest realization during liquidation requires price intimation, buyer notice, minimum price protection, and eligibility checks. A secured creditor realizing security interest during liquidation must first intimate the liquidator of the proposed price. The liquidator may then notify the secured creditor if a higher-price buyer is willing to purchase within the specified period, and in that event the creditor must sell the asset to that buyer. If no such notice is given, or the buyer does not complete the purchase, the secured creditor may realize the asset as it deems fit, but not below the intimated price. Cost allocation and exclusions for SARFAESI and debt recovery enforcement also apply.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Security interest realization during liquidation requires price intimation, buyer notice, minimum price protection, and eligibility checks.
A secured creditor realizing security interest during liquidation must first intimate the liquidator of the proposed price. The liquidator may then notify the secured creditor if a higher-price buyer is willing to purchase within the specified period, and in that event the creditor must sell the asset to that buyer. If no such notice is given, or the buyer does not complete the purchase, the secured creditor may realize the asset as it deems fit, but not below the intimated price. Cost allocation and exclusions for SARFAESI and debt recovery enforcement also apply.
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