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

The Central Government integrates the registration records of the Motor Vehicles Act and the Registration Act systems with the Central Registry and notifies the date of integration under Section 20A(2). Sundaram Bank holds a security interest over a truck, registered only under the Motor Vehicles Act. From the notified date, what is the position of Sundaram Bank's security interest for the purposes of the SARFAESI Act?

From the notified date of integration, a security interest registered under an integrated system such as the Motor Vehicles Act is deemed to be registered with the Central Registry for the purposes of the SARFAESI Act. No separate filing is needed under Section 20A(2).

  1. AIt is deemed to be registered with the Central Registry for the purposes of the ActCorrect
  2. BIt must be separately filed at the Central Registry within thirty days or it becomes void
  3. CIt stays outside the Central Registry because Motor Vehicles Act records cannot be integrated
  4. DIt is treated as registered only if the bank pays a fee fixed by the Registry

Explanation

Section 20A(2) provides that, from the notified date, security interests over properties registered under an integrated registration system are deemed registered with the Central Registry for the purposes of the Act. The Explanation to Section 20A(1) lists the Motor Vehicles Act among the records that can be integrated. No fresh filing is required by that provision.

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