Yes, provided the outstanding amount as on the date of issuance of notice u/s 13(2) is paid within time.

The secured creditor may appoint any officer not less than the chief manager of a public sector bank or equivalent or any other person or authority as specified by the Board of Directors/Trustees as the case may be.

Any asset, movable or immovable, given as security whether by way of mortgage, hypothecation or creation of a security interest in any other form except those excluded u/s 31 of the Act.

Only those property given as security can be proceeded under the provisions of SARFAESI Act.

6.Any rights created in favour of any third party before the creation of security interest in the asset will not be affected.

No, there is no provision for exemption for any property secured to the bank/financial institution including mortgaged residential house save and except those specified u/s 31 of the Act.

The borrower can raise objections/representations, if any in writing to the secured creditor who has to deal with the same and reply back in writing.

No, S. 13(13) prohibits the borrower from transferring the asset after receipt of the notice u/s 13(2) save and except in the usual course of business.

The CMM or the District Magistrate may, on an application in writing being made by the secured creditor, pass an order for taking possession through its office by taking such steps, including force as might in his opinion be necessary. However such an order is not mandatory except where an obstruction may be apprehended.

In case the outstanding demanded in the notice u/s 13(2) is not paid within 60 days, the creditor can take possession u/s 13(4). The creditor has the option of taking either symbolic or physical possession.

There is no bar under the SARFAESI Act which prohibits the secured creditor from taking possession of a running unit.

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.

Yes, SARFAESI action can be initiated against any sick company registered with the BIFR provided 75% of the secured creditors agree. Upon 75% of the creditors agreeing, the proceedings before BIFR abate.

No, the SARFAESI Act does not contemplate any such notice prior to action being taken u/s 13(4).

The borrower or any aggrieved person can make an application u/s 17 of the Act to the Debt Recovery Tribunal to challenge the action within 45 days from the action being taken u/s 13(4).

No, there is no provision for waiver of any court fees except for an indigent person or a pauper.

The secured creditor can initiate proceedings under the RDDB & FI Act for recovery of balance amount due after sale of the secured assets.

The RDDB & FI Act allows filing of proceedings for recovery of the entire defaulted amount including enforcement of the secured assets and recovery from the personal properties of the debtors whereas the SARFAESI Act confers power of enforcement only in respect of the secured asset/s.

Yes, in view of the judgement dated 29-11-2006 of the Supreme Court in the matter of Re : Transcore Electricals vs UoI the secured creditor can proceed simultaneously under the RDDB & FI ACT and SARFAESI Act.

Upon possession being taken, the secured creditor has to give a mandatory 30 days notice to the borrower prior to the date of sale.

Any asset sold under SARFAESI action is sold on an as is where is and as is what is basis unless specified otherwise. Sale under SARFAESI is governed by the terms and conditions of sale forming part of the sale process.

The owner of the secured asset shall be entitled to the surplus amount.

Yes.

Full form of EMD is Earnest Money Deposit. This is a security amount that you must pay to the bank in order to be eligible to bid on a property. Generally, the EMD amount is set at around 10 per cent of the auction price. If you are not the successful bidder in the auction, the bank will return your EMD.