Explain the right of borrower to receive compensation and costs as per provision of the section 19 of Securitisation and Reconstruction of Financial Assets and Reinforcement of Security Interest (SARFAESI) Act., 2002.
CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · June 2025
Explain the right of borrower to receive compensation and costs as per provision of the section 19 of Securitisation and Reconstruction of Financial Assets and Reinforcement of Security Interest (SARFAESI) Act., 2002.
Answer & Explanation:
Section 19 of the SARFAESI Act, 2002 deals with Right of borrower to receive compensation and costs in certain cases. It states that: Section 19 provides that if the Debts Recovery Tribunal or the Court of District Judge, on an application made under section 17 or section 17A or the Appellate Tribunal or the High Court on an appeal preferred under section 18 or section 18A, holds that the possession of secured assets by the secured creditor is not in accordance with the provisions of this Act and rules made there under and directs the secured creditors to return such secured assets to the concerned borrowers or any other aggrieved person, who has filed the application under section 17 or section 17A or appeal under section 18 or section 18A, as the case may be, the borrower or such other person shall be entitled to the payment of such compensation and costs as may be determined by such Tribunal or Court of District Judge or Appellate Tribunal or the High Court referred to in section 18B.
Topics: Securitisation and Reconstruction of Financial Assets
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