Sarveshwar Mehrotra (Practising Lawyer) 03 December 2008

Securitisation Query

"Under Securitisation Act whether possession notice as laid down under Rule 8 of the Security Interest Enforcement Rules 2002 is necessary before moving the DM or MM for an application under Section 14.

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2 Replies

TVD Rajkumar (Advocate) 08 December 2008

Lets see it this way. The very purpose of S. 14 is to remove any difficulties in taking possession or selling the secured assets. The section is very lucid in this aspect. Hence it is not strictly necessary to issue possession notice before moving u/s 14. The possession notice needs to be however served/published as per Rule 8, immediately after taking possession with the aid of CMM/DM.

Please note the procedure u/s 14 for possession is reqd only for taking "actual possession" and not symbolic possession.

As a abundant caution, you may get a notice u/s 13(4) for symbolic possession issued before moving to CMM/DM, as this would hasten the process before CMM/DM