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CS Professional · Insolvency and Bankruptcy - Law and Practice · Debt Recovery and Securitization

Sunrise Textiles Pvt Ltd (Surat) defaulted on a secured loan. On 3 March, Western Bank took possession of the mortgaged factory under the SARFAESI measures. Sunrise wants to challenge the possession before the Debts Recovery Tribunal. Within what period from the date of the measure must the application be made?

The application must be made within forty-five days from the date on which the section 13(4) measure was taken. Section 17(1) of the SARFAESI Act sets this period for any aggrieved person, including the borrower. Sixty days is the DRT's ordinary disposal period, not the limit for filing.

  1. AThirty days
  2. BForty-five daysCorrect
  3. CSixty days
  4. DNinety days

Explanation

Section 17(1) of the SARFAESI Act allows any aggrieved person, including the borrower, to apply to the DRT within forty-five days from the date on which the measure under section 13(4) was taken. Sixty days is the period within which the DRT should ordinarily dispose of the application, not the filing limit.

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