AIR 2018 SUPREME COURT 5383 ::AIROnline 2018 SC 835 ::(2019) 1 CivLJ 772 ::2019 (2) SCC 198 ::(2018) 4 RecCivR 948 ::(2018) 14 Scale 543

Supreme Court Of India

(From: AIR 2018 All 131)

Hon'ble Judge(s): Rohinton Fali Nariman, Navin Sinha , JJ

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (54 of 2002) , S.17(1), S.13(4), S.13(3A) Proviso— Security Interest (Enforcement) Rules (2002) , R.8(1), R.8(2)— (Inserted by Act 30 of 2004) Enforcement of security interest - Application by borrower against measures to recover secured debt - Borrower/debtor can approach Debts Recovery Tribunal under section 17 at stage of possession notice referred to in rule 8(1) and 8(2) of 2002 Rules. All measures having been taken under section 13(4), and before date of sale auction, it would be open for borrower to file petition under section 17 of Act. reading of section 13 would make it clear that where default in repayment of secured debt or any installment thereof is made by borrower, secured creditor may require borrower, by notice in writing, to discharge in full his liabilities to secured creditor within 60 days from date of notice. It is only when borrower fails to do so that secured creditor may have recourse to provisions contained in section 13(4) of Act. Section 13(3-A) making it clear that if on receipt of notice under section 13(2), borrower makes representation or raises an objection, secured creditor is to consider such representation or objection and give reasons for non-acceptance. Proviso to section 13(3-A) makes it clear that this would not confer upon b....