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

A notification under section 20A declares the date of integration of registration systems with the Central Registry. Which consequence follows from that notification for a security interest over a vehicle registered under the Motor Vehicles Act, 1988?

Under section 20A(2), once the Central Government notifies the date of integration, security interests over properties registered under an integrated system, including the Motor Vehicles Act, are deemed registered with the Central Registry for SARFAESI purposes. The original registration is not cancelled or affected.

  1. AFrom the declared date, the security interest is deemed registered with the Central Registry for the purposes of the SARFAESI ActCorrect
  2. BThe security interest is cancelled and must be re-created
  3. CThe security interest loses priority over later charges
  4. DThe Motor Vehicles Act registration becomes void

Explanation

Section 20A(2) says that after integration, the Central Government notifies the date of integration and the date from which integrated records are available. From that date, security interests over properties registered under any integrated registration system are deemed registered with the Central Registry for the purposes of the Act. Nothing in it cancels or voids the original registration.

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