The question (15 marks)
Explain the procedure by which a secured creditor may enforce a security interest without the intervention of a court, and the protections available to the borrower. (15 marks)
MU Module 3, head 3.3; 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.
- SARFAESI Act 2002, ss. 13, 14, 15, 16, 17, 18, 19, 31, 34, 35, 36
- Recovery of Debts Due to Banks and Financial Institutions Act 1993, ss. 17, 20, 21
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.