Sunday 8 February 2015

HIGH COURT OF ANDHRA PRADESH: - SECTION 13 OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002


In the case of India Finlease Securities Limited, Chennai, Vs. Indian Overseas Bank
AIR 2013 AP 10 it was held that "It is clear that where the borrower fails to discharge the liability of the secured creditor within sixty days of notice as provided in sub-section (2) of Section 13 of the Act, under sub-section (4) the secured creditor may take possession of the secured assets of the borrower including the right to transfer by way of lease, assignment or sale for realizing the secured asset and has also power to take over the management of the business of the borrower including the right to transfer by way of lease, assignment or sale for realizing the secured asset. Therefore, the 'sale' contemplated under subsection (8) of Section 13 is by way of transfer of the secured asset."


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