Unit 3 of Law of Banking and Negotiable Instruments (syllabus: Module III — the Securities and Exchange Board of India Act 1992; the Foreign Exchange Management Act 1999; enforcement of security interests under SARFAESI 2002; and proof of entries under the Bankers’ Books Evidence Act 1891). Below: what the unit covers, the provisions it turns on, and the cases an examiner expects you to name.
What this unit covers
- What must a secured creditor do before enforcing a security interest without a court?
- Why was the seventy-five per cent pre-deposit under the original s. 17(2) struck down?
- How widely is the bar on civil jurisdiction under the SARFAESI Act to be read?
- What is outside the SARFAESI Act altogether?
- What may the Recovery Officer do to execute a certificate of recovery?
- What does the Securities and Exchange Board of India exist to do?
- How may a bank prove the contents of its own books?
Treat that list as a self-test: recite each topic's rule from memory before you open its cases.
Provisions
- SARFAESI Act 2002, s. 13(2)
- SARFAESI Act 2002, s. 17
- SARFAESI Act 2002, s. 34
- SARFAESI Act 2002, s. 31
- Recovery of Debts Due to Banks and Financial Institutions Act 1993, s. 25
- Securities and Exchange Board of India Act 1992, s. 11
- Bankers' Books Evidence Act 1891, s. 4
Leading cases
- Mardia Chemicals Ltd. v. Union of India
- Section 31 of the SARFAESI Act 2002 is the governing provision; this course states no decided case on the exclusions
- Sections 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 are the governing provisions; this course states no decided case on execution by the Recovery Officer
- Section 11 of the Securities and Exchange Board of India Act 1992 is the governing provision; this course states no decided case on the Board's functions
- State Bank of India v. Yumnam Gouramani Singh