TMI BlogSecurity Interest (Enforcement) Rules, 2002X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 notice as referred to in sub-section (2) of section 13 of the Ordinance shall be made by delivering or transmitting at the place where the borrower or his agent, empowered to accept the notice or documents on behalf of the borrower, actually and voluntarily resides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf 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. (4) The authorised officer shall take steps for preservation and protection of secured assets and insure them, if necessary, till they are sold or otherwise disposed of. (5) In case any secured asset is: ( a ) a debt not secured by negotiable instrument; or ( b ) a share in a body corporate; ( c ) other movable property not in the possession of the borrower except the property deposited in or in the custody of any court or any like authority, the authorised officer shall obtain possession or recover the debt by service of notice as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding public auction, the secured creditor shall cause a public notice in two leading newspapers, one in vernacular language, having sufficient circulation in that locality by setting out the terms of sale, which may include, ( a ) details about the borrower and the secured creditor; ( b ) description of movable secured assets to be sold with identification marks or numbers, if any, on them; ( c ) reserve price, if any, and the time and manner of payment; ( d ) time and place of public auction or the time after which sale by any other mode shall be completed; ( e ) depositing earnest money as may be stipulated by the secured creditor; ( f ) any other thing which the authorised officer considers it material for a purchaser to know in order to judge the nature and value of movable secured assets. (3) 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. Issue of certificate of sale 7. (1) Where movable secured assets is sold, sale price of each lot shall be paid as per the terms of the public notice or on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the persons dealing with similar secured assets or otherwise interested in buying the such assets; or ( b ) by inviting tenders from the public; or ( c ) by holding public auction; or ( d ) by private treaty. (6) The authorised officer shall serve to the borrower a notice of thirty days for sale of the immovable secured assets under sub-rule (5) : Provided that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in two leading newspapers one in vernacular language having sufficient circulation in the locality by setting out the terms of sale, which shall include, ( a ) the description of the immovable property to be sold, including the details of the encumbrances known to the secured creditor; ( b ) the secured debt for recovery of which the property is to be sold; ( c ) reserve price, below which the property may not be sold; ( d ) time and place of public auction or the time after which sale by any other mode shall be completed; ( e ) deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the terms of payment have been complied with, the authorised officer exercising the power of sale shall issue a certificate of sale of the immovable property in favour of the purchaser in the Form given in Appendix V to these rules. (7) Where the immovable property sold is subject to any encumbrances, the authorised officer may, if he thinks fit, allow the purchaser to deposit with him the money required to discharge the encumbrances and any interest due thereon together with such additional amount that may be sufficient to meet the contingencies or further cost, expenses and interest as may be determined by him. (8) On such deposit of money for discharge of the encumbrances, the authorised officer may issue or cause the purchaser to issue notices to the persons interested in or entitled to the money deposited with him and take steps to make the payment accordingly. (9) The authorised officer shall deliver the property to the purchaser free from encumbrances known to the secured creditor on deposit of money as specified in sub-rule (7) above. (10) The certificate of sale issued under sub-rule (6) shall specifically mention that whether the purchaser has purchased the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The abovementioned Panchas on being called by Shri..............., the authorised officer of...................... (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 under section 13(4) of the said Ordinance today entered the premises of Shri M/s. .....at....., and demanded the payment of the dues mentioned in the demand notice dated.....in respect of Loan Account bearing No. and on its non-payment, taken over possession of movable properties as detailed in the inventory attached to this Panchnama between the hours.....M and.....M in our presence. We also hereby state that during take over of possession.....(to be filled in case of occurrence of any incidence). Therefore, we declare that the facts of the Panchnama mentioned herein are true and correct to the best of our observations and knowledge. 1. Signature Date Time Name Address ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date: Place: Appendix IV [ rule 8(1) ] Possession Notice (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 powers conferred under section 13(12) read with rule 9 of the Security Interest (Enforcement) Rules, 2002 issued a demand notice dated.....calling upon the borrower Shri...../M/s.....to repay the amount mentioned in the notice being Rs. .....(in words.....) within 60 days from the date of receipt of the said notice. The borrower having failed to repay the amount, notice is hereby given to the borrower and the public in general that the undersigned has taken possession of the property described hereinbelow in exercise of powers conferred on him/her under section 13(4) of the said Ordinance read with rule 9 of the said Rules on this.....day of.....of the year..... The borrower in particular and the public in general is hereby cautioned not to deal with the property and any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002 For use in Office. Date of filing........... Date of receipt by post.......... Registration No. .......... Signature Registrar In the Debts Recovery Tribunal [Name of the place] Between A.B. Applicant And C.D. Defendant Delete whichever is not applicable. Details of Application: 1. Particulars of the applicant ( i ) Name of the applicant : ( ii ) Address of Registered Office: ( iii ) Address for service of all notices: 2. Particulars of the (defendant): ( i ) Name of the defendant): ( ii ) Office address of the (defendant): ( iii ) Address for service of all notices: 3. Jurisdiction of the Tribunal: The appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable: 11. Details of Index: An index in duplicate containing the details of the documents to be relied upon is enclosed. [Such documents should include copies of sale certificates or any other documents relating to sale of secured assets and sale proceeds realised]. 12. List of enclosures: Verification I.................................. (Name in full and block letters) son/daughter/wife of Shri................................................. being the............................ (designation)............................... (name of the company) holding a valid power of attorney from............................ (name of the company) do hereby verify that the contents of paras 1 to 11 are true to my personal knowledge and belief and that I have not suppressed any material facts. Signature of the applicant Place: Date: To The Registrar ..................................... ................................ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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