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Can the secure creditor also take action under SARFAESI against a company in liquidation?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Urmil asked over 2 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

Hi.. > Can the secure creditor also take action under SARFAESI against a > company in liquidation? --The full form of SARFAESI Act is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. --Banks utilize this act as an effective tool for bad loans ( NPA) recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment -- As far as your query is concern, the secured creditor can take action against a company in liquidation in respect of its dues secured by the assets of the company. -- However, as per the provisions of the SARFAESI act, the secured creditor shall keep the Official Liquidator informed/updated about the steps being taken by it for liquidating the assets.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

Hello Friend, I check your interesting queries i.e Can the secure creditor also take action under SARFAESI against a company in liquidation? Yes, the secured creditor can take action against a company in liquidation in respect of its dues secured by the assets of the company. However, the secured creditor shall keep the Official Liquidator informed/updated about the steps being taken by it for liquidating the assets.

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