'No recovery under section 31, sub-section (10) of the SARFAESI Act shall be enforced by an other of the Bank authorised in this behalf certifying that the person in default has failed to pay the recoverable sum.' Explai

Section 30D of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) relates to recovery of penalties. Section 30D (10) of the SARFAESI provides that the Reserve Bank may enforce recovery of recoverable sum through the principal civil court having jurisdiction in the area where the registered office or the head office or the principal place of business of the person in default or the usual place of residence of such person is situated as if the notice issued by the Reserve Bank were a decree of the Court. Further, Section 30D (11) of the SARFAESI provides that no recovery under sub-section (10) shall be enforced, except on an application made to the principal civil court by an officer of the Reserve Bank authorised in this behalf certifying that the person in default has failed to pay the recoverable sum. However, Section 31 of the SARFAESI provides that provisions of this Act not to apply in certain cases. In terms of Section 31 of the SARFAESI, the provisions of this Act shall not apply to- a lien on any goods, money or security given by or under the Indian Contract Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force; a pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872; creation of any security in any aircraft as defined in clause (1) of section 2 of the Aircraft Act, 1934; creation of security interest in any vessel as defined in clause (55) of section 3 of the Merchant Shipping Act, 1958; any rights of unpaid seller under section 47 of the Sale of Goods Act, 1930; any properties 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 the Code of Civil Procedure, 1908; any security interest for securing repayment of any financial asset not exceeding one lakh rupees; any security interest created in agricultural land; any case in which the amount due is less than twenty per cent of the principal amount and interest thereon.