Who is required to register security interests with CERSAI after the SARFAESI amendment 2019?
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(SARFAESI Act 2002) provide for Enforcement of Security Interest for the realization of the dues without the intervention of Courts or Tribunals for recovery of NPAs by banks under various laws. In 2016 NBFC is included under the definition of the financial institution through…
Read article SARFAESI Act, 2002: Applicability, Objectives, and Process of NPA Recovery
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is a landmark legislation enacted to empower banks and financial institutions with the ability to recover non-performing assets (NPAs) without the need for court intervention. The Act was later amended by the Enforcement of Security Interest and Recovery of…
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Definition of NPA and Asset Classifications of irregular loans
(This article explains the definition of non-performing assets (NPAs), classification of assets, Income recognition, and provisioning requirement under prudential norms for all types of accounts including NPA norms for Agricultural loans and especially KCC) Asset classification, in the context of financial institutions like banks, involves categorizing loans and advances into different classes based on their…
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Pre-Packaged Insolvency Resolution Process for Stressed MSMEs under the IBC
Introduction The Pre-Packaged Insolvency Resolution Process (PPIRP) is a targeted mechanism introduced under the Insolvency and Bankruptcy Code (IBC) of India to address financial distress in Micro, Small, and Medium Enterprises (MSMEs). Designed to be faster, more economical, and less disruptive than the conventional Corporate Insolvency Resolution Process (CIRP), the PPIRP enables financially stressed MSMEs…
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Paradigm Shift in India’s Insolvency Framework: From Resolution to Liquidation under the IBC
Introduction The enactment of the Insolvency and Bankruptcy Code (IBC), 2016, marked a transformative shift in India’s approach to corporate insolvency and liquidation. The Code replaced the erstwhile debtor-in-possession model with a creditor-in-control framework, introducing a structured, time-bound mechanism for the resolution of financial distress. Its core objectives include facilitating faster resolution, maximizing the value…
Legal Elements and Framework of the Insolvency and Bankruptcy Code
Introduction The Insolvency and Bankruptcy Code (IBC) provides a comprehensive legal framework for resolving financial distress faced by individuals and businesses in India. It outlines the processes, principles, and institutions involved in managing insolvency and bankruptcy cases in a time-bound and equitable manner. The Code incorporates several key legal elements including automatic stay, debtor obligations,…
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