Urmil
asked almost 3 years ago
CA Sandeep Bohra
answered almost 3 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.
Anil
answered almost 3 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.
