TaxTMI 
TaxTMI 
Security Interest (Enforcement) Rules, 2002
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....r authority exercising powers of superintendence, direction and control of the business or affairs of the secured creditor, as the case may be, to exercise the rights of a secured creditor under the Ordinance; (b) Demand notice means the notice in writing issued by a secured creditor or authorised officer, as the case may be, to any borrower pursuant to sub-section (2) of section 13 of the Ordinance; (c) "Ordinance" means the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002 (Ord. 3 of 2002); (d) "Approved valuer" means a valuer as approved by the Board of Directors or Board of Trustees of the secured creditor, as the case may be; (e) Words and expressions used and not defined in these Rules but defined in the Ordinance shall have the meanings respectively assigned to them in the Ordinance. Demand Notice 3. (1) The service of demand not....
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....nbsp; (2) After taking possession under sub-rule (1) above, the authorised officer shall make or cause to be made an inventory of the property as nearly as possible in the form given in Appendix II to these rules and deliver or cause to be delivered, a copy of such inventory to the borrower or to any person entitled to receive on behalf of borrower. (3) The authorised officer shall keep the property taken possession under sub-rule (1) either in his own custody or in the custody of any person authorised or appointed by him who shall take as much care of the property in his custody as an owner of ordinary prudence would, under the similar circumstances, take of such property: Provided that if such property is subject to speedy or natural decay, or the expense of keeping such property in custody is likely to exceed its value, the authorised officer may sell it at once. &nbs....
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.... and in any case before sale, the authorised officer shall obtain the estimated value of the movable secured assets and thereafter, if considered necessary, fix in consultation with the secured creditor, the reserve price of the assets to be sold in realisation of the dues of the secured creditor. Sale of movable secured assets 6. (1) The authorised officer may sell the movable secured assets taken possession under sub-rule (1) of rule 4 in one or more lots by adopting any of the following methods to secure maximum sale price for the assets, to be so sold- (a) obtaining quotations from parties dealing in the secured assets or otherwise interested in buying such assets; or (b) inviting tenders from the public; or (c) holding public auction; or (d) by private treaty. (2) The authorised officer shall serve to the borrower a notice of thirty days for sale of the movable secured assets, under sub-rule (....
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....7 dealing with the sale of movable secured assets shall, mutatis mutandis, apply to such assets. Sale of immovable secured assets 8. (1) Where the secured asset is an immovable property, the authorised officer shall take or cause to be taken possession, by delivering a possession notice prepared as nearly as possible in Appendix IV to these rules, to the borrower and by affixing the possession notice on the outer door or at such conspicuous place of the property. (2) The possession notice as referred to in sub-rule (1) shall also be published in two leading newspaper, one in vernacular language having sufficient circulation in that locality, by the authorised officer. (3) In the event of possession of immovable property is actually taken by the authorised officer, such property shall be kept in his own custody or in the custody of any person authorised or appointed by him, who shall take as much care of the property in his custody as a owner of ordinary prudence would, under the similar circumstances, take of such property. (4) The authorised officer shall take steps for preservation and protection of secured assets and insure them, if necessary, till they are sold o....
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....perty. (7) Every notice of sale shall be affixed on a conspicuous part of the immovable property and may, if the authorised officer deems it fit, put on the website of the secured creditor on the Internet. (8) Sale by any methods other than public auction or public tender, shall be on such terms as may be settled between the parties in writing. Time of sale, issue of sale certificate and delivery of possession, etc. 9. (1) No sale of immovable property under these rules shall take place before the expiry of thirty days from the date on which the public notice of sale is published in newspapers as referred to in the proviso to sub-rule (6) or notice of sale has been served to the borrower. (2) The sale shall be confirmed in favour of the purchaser who has offered the highest sale price in his bid or tender or quotation or offer to the authorised officer and shall be subject to confirmation by the secured creditor: Provided that no sale under this rule shall be confirmed, if the amount offered by sale price is less than the reserve price, specified under sub-rule (5) of rule 9: Provided further that if the authorised officer fails to obtain a price higher than th....
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....n with the borrower any person (hereinafter referred to as the Manager) to manage the secured assets the possession of which has been taken over by the secured creditor. (2) The Manager appointed by the Board of Directors or Board of Trustees, as the case may be, shall be deemed to be an agent of the borrower and the borrower shall be solely responsible for the commission or omission of acts of the Manager unless such commission or omission are due to improper intervention of the secured creditor or the authorised officer. (3) The Manager shall have power by notice in writing to recover any money from any person who has acquired any of the secured assets from the borrower, which is due or may become due to the borrower. (4) The Manager shall give such person who has made payment under sub-rule (3) a valid discharge as if he has made payments to the borrower. (5) The Manager shall apply all the monies received by him in accordance with the provisions contained in sub-section (7) of section 13 of the Ordinance. Procedure for Recovery of shortfall of secured debt 11. (1) An application for recovery of balance amount by any secured creditor pursuant to sub-section (10....
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....n of at the premises of Shri/M/s. .....Plot No. ...../Gala No. ..... H. No. ....., Street No. .....of.....under section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002 and the Security Interest (Enforcement) Rules, 2002 made thereunder, on this.....day of.....20.....by Shri....., authorised officer of.....(name of the Institution) under the said Ordinance between the hours.....M. Sr. No. Description of article Estimated value Place where kept for safe custody (Name of the person if necessary) Panchas: Sr. No. Name and Address of Panch Signatures Drawn by me today the.....20.....at.....M. Signature of Borrower/Representative Signature of Authorised Officer Appendix III [rule 7(2)] Certificate of Sale (for Movable property) Whereas The undersigned being the authorised officer of the.....(name of the institution) under the Securitisation and Reconst....
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......and District..... Bounded : On the North by On the South by On the East by On the West by Sd/- Authorised Officer (Name of the Institution) Date: Place: Appendix V [rule 9(6)] Sale Certificate (for Immovable property) Whereas The undersigned being the authorised officer of the.....(name of the Institution) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002 (Ord. 3 of 2002) and in exercise of the powers conferred under section 13 read with rule 12 of the Security Interest (Enforcement) Rules, 2002 sold on behalf of the.....(name of the secured creditor/institution) in favour of.....(purchaser), the immovable property shown in the schedule below secured in favour of the.....(name of the secured creditor) by......(the names of the borrowers) towards the financial facility.....(description) offered by.....(secured creditor). The undersigned acknowledge the receipt of the sale price in full and hand over the delivery and possession of the scheduled property. The sale of the scheduled property was made fre....
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.... (iii) Address for service of all notices: 3. Jurisdiction of the Tribunal: The applicant declares that the subject-matter of the recovery of debt due falls within the jurisdiction of the Tribunal. 4. Limitation: The applicant further declares that the application is within the limitation prescribed in section 24 of the Recovery of Debts Due to Banks and Financial Institutions (Act), 1993. 5. Facts of the case: The facts of the case are given below: [Give here a concise statement of facts in a chronological order, each paragraph containing as nearly as possible a separate issue, fact or otherwise]. 6....