Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Debt Recovery and SARFAESI

A notification setting up the Central Registry under section 20(1) of the SARFAESI Act has been issued. Rao Finance Ltd, a secured creditor, asks which provisions come into application only after that setup. Which statement matches section 39?

Section 39 makes sub-sections (2), (3) and (4) of section 20, and sections 21 to 27, applicable only after the Central Registry is set up under section 20(1). They do not operate automatically from enactment, and section 28 is omitted.

  1. ASub-sections (2), (3) and (4) of section 20 and sections 21 to 27 apply after the Central Registry is set upCorrect
  2. BOnly section 20(1) applies after the Central Registry is set up
  3. CSections 20 to 28 all apply automatically from the date of enactment of the Act
  4. DSections 21 to 27 apply but section 20(2) to (4) do not apply

Explanation

Section 39 provides that sub-sections (2), (3) and (4) of section 20 and sections 21, 22, 23, 24, 25, 26 and 27 apply after the Central Registry is set up under section 20(1). Section 28 is omitted and is not covered. The option stating they apply from enactment ignores the condition of the registry being set up.

Did you get it right without looking?

One question tells you little. A timed set on Debt Recovery and SARFAESI shows your real accuracy, how long you take and where you lose marks.

Practise Debt Recovery and SARFAESIFree diagnostic mock

More Debt Recovery and SARFAESI questions