Introduction:
Diving into the intricate fabric of the Sarfaesi Act Section 19, this article unfolds the borrower's entitlement to compensation and costs in specific scenarios. Triggered by decisions from authoritative bodies, such as the Debt Recovery Tribunal or the High Court, this provision becomes operational when secured assets' possession is contested. By examining the triggering conditions, compensation determination, and recent state amendments in Jammu Kashmir, and Ladakh, we illuminate the nuanced legal landscape surrounding borrowers' rights, reflecting the adaptive nature of legal frameworks in response to regional reorganization.
Entitlement to Compensation
Section 19 of the Sarfaesi Act addresses the proper of the borrower to receive reimbursement and prices under specific situations. This provision comes into play when the money owed recuperation Tribunal, the court docket of the District Judge, the Appellate Tribunal, or the high court docket decides regarding the possession of secured belongings by way of the secured creditor.
Triggering Conditions
- The borrower or another aggrieved man or woman can provoke this system through a utility below section 17 or section 17A, or by filing an enchantment beneath section 18 or section 18A.
- If the cited government locates that the ownership of secured assets isn't according to the provisions of the Sarfaesi Act and the related guidelines, they can direct the secured creditors to return the belongings to the worried debtors or aggrieved persons.
Compensation and Costs Determination
- Upon such a directive, the borrower or the aggrieved person is entitled to receive compensation and costs.
- The amount of compensation and costs is determined by the Tribunal, Court of District Judge, Appellate Tribunal, or the High Court referred to in section 18B.
State Amendments: Jammu and Kashmir Union Territory
Modifications to Section 19
(i) Omission:
- "or the Court of District Judge" removed in both occurrences.
- "or section 17A" omitted at both occurrences.
- "or the High Court" omitted.
- "or section 18A" omitted at both occurrences.
- "or the High Court referred to in section 18B" removed at the end.
(ii) New Section Inserted:
- Following phase 19, a new provision, segment 19A, titled "transfer of Pending programs," is inserted. This section mandates the transfer of all pending programs earlier than the court docket of the District Judge and the high courtroom below sections 17A and section 18B, respectively, to the Tribunal and the Appellate Tribunal.
State Amendments: Union Territory of Ladakh
Modifications to Section 19
(i) Omission:
-" or the District Judge's court," was dropped.
- Both "or the High Court" and "or the High Court referred to in section 18B" are deleted.
- "or section 17A" and "or section 18A" omitted.
These amendments, effective from October 26, 2020, showcase the adaptability of legal provisions in response to regional reorganization
