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Sec 19, SARFAESI Act 2002: Borrower's Right - Compensation & Costs

Section 19 (Right of borrower to receive compensation and costs in certain cases) under Chapter III (Enforcement of security interest) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 —

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 thereunder 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.




Extra Notes for Readers

(1) Section 19 of SARFAESI Act, 2002 was substituted by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 (Act 30 of 2004), sec. 14, (w.e.f. 11-Nov-2004).

(2) Section 19 of SARFAESI Act, 2002 was modified by the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (Act 44 of 2016), sec. 15, (w.e.f. 1-Sep-2016).

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