Gujarat HC issues notice in challenge to rule on sale of secured assets by private treaties

Gujarat HC issues notice in challenge to rule on sale of secured assets by private treaties
Published on
3 min read

The Gujarat High Court has issued notice in a challenge to Rule 8 (8) of the Security Interest (Enforcement) Rules, 2002 [‘2002 Rules’].In the event of a loan default and subsequent invocation of the Securitisation Act, 2002, Rule 8 (8) of the 2002 Rules effectively enables secured creditors to disregard methods such as a public auction/public tender and sell the immovable secured assets of the borrowed by means of a written settlement or a private treaty with the proposed purchaser. After a 2016 amendment, it states,

Loading content, please wait...
Bar and Bench - Indian Legal news
www.barandbench.com