https://www.taxtmi.com/highlights?id=105832 Sections 5(4) and 5(5) of the SARFAESI Act permit an asset reconstruction company to substitute a bank in pending cheque-dishonour prosecutions relating to acquired financial assets; substitution is not confined to civil proceedings. Assignment of the underlying debt does not change the cheque's payee. Under Sections 5(2) and 5(3), an asset reconstruction company acquiring the debt and security cheques for consideration becomes their possessor and, read with Section 9 of the Negotiable Instruments Act, a holder in due course. Formal endorsement is not indispensable where a cheque is purchased for consideration. The assignee may maintain and prosecute the pending complaint. en-us Thu, 05 Nov 2026 07:44:57 +0530 Thu, 05 Nov 2026 07:44:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=105832 Sections 5(4) and 5(5) of the SARFAESI Act permit an asset reconstruction company to substitute a bank in pending cheque-dishonour prosecutions relating to acquired financial assets; substitution is not confined to civil proceedings. Assignment of the underlying debt does not change the cheque's payee. Under Sections 5(2) and 5(3), an asset reconstruction company acquiring the debt and security cheques for consideration becomes their possessor and, read with Section 9 of the Negotiable Instruments Act, a holder in due course. Formal endorsement is not indispensable where a cheque is purchased for consideration. The assignee may maintain and prosecute the pending complaint. Highlights Indian Laws Thu, 05 Nov 2026 07:44:57 +0530 https://www.taxtmi.com/highlights?id=105832