The question (15 marks)
Compare the machinery of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 with that of the SARFAESI Act 2002, and explain why the two statutes must be read together. (15 marks)
MU Module 3, head 3.3, with Module 4, head 4.2; pack chapter on recovery of debts and the SARFAESI Act.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 3 · SEBI, FEMA, SARFAESI and the Bankers’ Books Evidence Act of Law of Banking and Negotiable Instruments.
Authorities you will need
- Mardia Chemicals Ltd. v. Union of India
- Pandurang Ganpati Chaugule v. Vishwasrao Patil Murgud Sahakari Bank Ltd.
- Recovery of Debts Due to Banks and Financial Institutions Act 1993, ss. 1(4), 3 to 7, 17, 18, 19, 20, 21, 22, 25, 28, 30, 34
- SARFAESI Act 2002, ss. 13, 17, 18, 34, 35
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.