"Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)" is a legislation for fast recovery of debt by the secured creditors but there are certain exceptions"-brie

Section 31 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) excludes the following for the purpose of attachment or enforcement under the said Act: A lien on any goods, money or security given by or under the Indian Contract Act, 1872 or Sale of Goods Act, 1930 or any law for the time being in force. A pledge of immovable within the meaning of Section 172 of Indian Contract Act, 1872. Creation of any security in any aircraft as defined in clause (1) of Section 2 of Air Craft Act, 1934. Creation of security interest in any vessel as defined in clause (55) of Section 3 of Merchant Shipping Act, 1958. Any rights of unpaid seller under section 47 of the Sale of Goods Act, 1930. Any property not liable to attachment (excluding the properties specifically charged with the debt recoverable under this Act) or sale under the first proviso to sub-section (1) of Section 60 of Code of Civil Procedure, 1908. Any security interest for securing repayment of any financial asset not exceeding one lakh rupees. Any security interest created on agricultural land. Any case in which the amount due is less than twenty per cent of the principal amount and interest thereon.