In which of the following cases will recourse to the SARFAESI Act not be available to a lender?
Section 31(j) excludes cases where the amount due is less than twenty per cent of principal and interest thereon. A bank-appointed debenture trustee is a recognised secured…
Choose your answer
In which of the following cases will recourse to the SARFAESI Act not be available to a lender?
Answer and explanation
Correct answer A
Section 31(j) excludes cases where the amount due is less than twenty per cent of principal and interest thereon. A bank-appointed debenture trustee is a recognised secured creditor; denial of liability or the stated pattern of women's shareholding does not itself create an exclusion.
Option feedback
Option A
Section 31(j) excludes a case below twenty per cent of principal and interest.
Option B
A debenture trustee appointed by a bank or financial institution is a recognised secured creditor.
Option C
Denial of the transaction alone creates no section 31 exclusion.
Option D
The stated women's shareholding pattern creates no section 31 exclusion.
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Delhi Higher Judicial Service