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Sec 31, SARFAESI Act 2002: Provisions Of This Act Not To Apply In Certain Cases

Section 31 (Provisions of this Act not to apply in certain cases) under Chapter VI (Miscellaneous) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 —

The provisions of this Act shall not apply to—

 (a) a lien on any goods, money or security given by or under the Indian Contract Act, 1872 (9 of 1872) or the Sale of Goods Act, 1930 (3 of 1930) or any other law for the time being in force;

 (b) a pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872 (9 of 1872);

 (c) creation of any security in any aircraft as defined in clause (1) of section 2 of the Aircraft Act, 1934 (24 of 1934);

 (d) creation of security interest in any vessel as defined in clause (55) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958);

 (f) any rights of unpaid seller under section 47 of the Sale of Goods Act, 1930 (3 of 1930);

 (g) 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 (5 of 1908);

 (h) any security interest for securing repayment of any financial asset not exceeding one lakh rupees;

 (i) any security interest created in agricultural land;

 (j) any case in which the amount due is less than twenty per cent. of the principal amount and interest thereon.




Extra Notes for Readers

(1) Section 31 of SARFAESI Act, 2002 was modified by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 (Act 30 of 2004), sec. 17, (w.e.f. 11-Nov-2004).

(2) Section 31 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. 22, (w.e.f. 1-Sep-2016).

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