Itepns to be KM r>n the Table of Rai T '"'• bh«

sr^n^fg/AUTHENTICATED

THEGAZETIEOFINDIA: EXTRAORDINARY / S - ^ ^ A t f r H — § f c . 3(ii)]

MINlSTl^YOFFlfJANCEANDCOft'Q'ANri'AJJ'IAIRS (*W< ?T* / f ^ T " )
. _ . , . „ . .w . , (ANAND RA*t> ADSUL)
(Department of Economic Affairs) V __ . • VL .*
(BANKING DIVISION) ... , ._ , /. . . . , , _.
NOTIFICATION MwiIsfeX-m Stats .in OK Ministry c£ Fnwmce
New Delhi, the 20th September, 2002
S.O. 1020 (E), —In exercise, of the powers conferred by Sub-section (!) and clause (b) of Sub-section (2) of
Section 38 read with Sub-Sections (4), (10) and (12) of Section 13 of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Ordinance, 2002 (Ord. 3 of 2002), the Central Government hereby makes the
following rules, namely:—
1. Short title and commencement.— (1) These rules may be called the Security Interest (Enforcement) Rules, 2002.
(2) They shall come into force from the dale of their publication in the Official Gazette.
2. Definations.—In these rules, unless the context otherwise requires,—
(a) "authorised officer" means an officer not less than a chief manager of a public sector bank or equivalent, as
specified by the Board of Directors or Board of Trustees of the secured creditor or any other person or
authority exercising powers of superintendence, direction and control of the business or affairs of the ;.
secured creditor, as the case may be, to exercise the rights of a secured creditor under the Ordinance;
(b) demand notice means the notice in writring issued-by a secured creditor or authorised officer, as the case
may be, to any borrower pursuant to sub-Section-(2) of Section 13 of the Ordinance;
(c) "Ordinance" means the Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest (Second) Ordinance, 2002 (Ord. 3 of 2002);
(d) ''approved valuer" means a valuer as approved by the Board of Directors or Board of Trustees of the
secured creditor, as the case may be ;
(e) Words and expressions used and not defined in these Rules but defined in the Ordinance shall have the
meanings respectively assigned to them in the Ordinance.
3. Demand Notice:—(1) The service of demand notice as referred to .in Sub-section (2) of Section 13 of the
Ordinance shall be made by delivering or transmitting at the place where the borrower or his agent, empowered to accept the
notice or documents on behalf of the borrower, actually and voluntarily resides or carries on business or personally works
for gain, by registered post with acknowledgement due, addressed to the borrower or his agent empowered to accept the
service or by Speed Post or by courier or by any other means of transmission of documents like fax message or electronic
mail service:
Provided that where authorised officer has reason to believe that the borrower or his agent is avoiding the service
of the notice or that for any other reason, the service can not be made as aforesaid, the service shall be effected by affixing
a copy of the demand notice on the outer door or some other conspicuous part of the house or building in which the
borrower or his agent ordinarily resides or carries on business or personally works for gain and also by publishing the
contents of the demand notice in iwo leading newspapers, one in vernacular langauage, having sufficient circulation in that
locality.
(2) where the borrower is a body corporate, the demand notice shall be served on the registered office or any of the
branches of such body corporate as specified under sub-rule(l).
(3) Any other notice in writing to be served on the borrower or his agent by authorised officer, shall be Served in
the same manner as provided in this rule.
(4) Where there are more than one borrower, the derpand notice shaU be served on each borrower.
4. Procedure after issue of notice.—If the amount mentioned in the demand notice is not paid within the time
specified therein, the authorised officer shall proceed to realise the amount by adopting any one or more of the measures
specified in Sub-section (4) of Section 13 of the Ordinance for taking possession of movable property, namely:—
(1) Where the possession of the secured assets to be taken by the secured creditor are movable property in
possession of the borrower, the authorised officer shall take possession of such movable property in the
presence of two witnesses after a Panchanama drawn and signal by the witnesses as nearly as possible in
Appendix-I to these rules.
(2). After taking possession under sub-rule (I) above, the authorised officer shall make or cause to be made an
inventory of the property as nearly as possible in the form given in Appendix-II to these rules and deliver or
cause to be delivered, a copy of such inventory to the borrower or to any person entitled to receive on behalf
of borrower.
(3) The authorised officer shall keep the property taken possession under sub-rule (1) either in his own custody
or in the custody of any person authorised or appointed by him. who shall take as much care of the property
in his custody as an owner of ordinary prudence would, under the similar circumstances, take of such
property:
 Til—i°rgg.3(ji)] mm •SCT Tfym : areigOT i9
Provided that if such property is subject lo speedy or natural decay, or the expense of keeping such property
in custody is likely to exceed its value, the authorised officer may sell it at once.
(4) The authorised officer shall take steps for preservation and protection of secured assets and insure them, if
necessary, till they are sold or otherwise disposed of.
(5) In case any secured asset is :—
(a) a debt not secured by negotiable instrument; or
(b) a share in a body corporate;
(c) other movable properly not in-the possession of the borrower except the property deposited in
the custody of any court or any like authority, the authorised officer shall obtain possession or
recover the debt by service of notice as under:—
(i) in the case of a debt, prohibiting the borrower from recovering the debt or any interest thereon,
and the debtor from making payment thereof and directing the debtor to make such payment to
the authorised officer; or
(ii) in the case of the shares in a body corporate, directing the borrower to transfer the same to the
secured creditor and also the body corporate from not transferring such shares in favour of any
person other than the secured creditor. A copy of the notice so sent may be endorsed to the
concerned body corporate's Registrar to the issue or share transfer agents, if any;
(iii) in the case of other movable.property (except as aforesaid), calling upon the borrowers and the
person in possession to hand over the same to the authorised officer and the authorised officer
shall take custody of such movable property in the same manner as provided in Sub-rule (1) to
(3) above;
(iv) movable secured assets other than those covered in this rule shall be taken possession of by
the authorised"officer by taking possession of the documents evidencing title to such secured
assets.
5. Valuation of movable secured assets.— After taking possession under sub-rule (I) of rule 4 and in any case-
before sale, the authorised officer shall obtain the estimated value of the movable secured assets and thereafter, if considered
necessary, fix in consultation with the secured creditor, the reserve price of the assets to be sold in realisation of the dues
of the secured creditor.
6. Sale of movable secured assets.—(I) the authorised officer may sell the moveable secured assets taken
possession under sub-rule (I) of rule 4 in one or more lots by adopting any of the following methods to secure maximum sale
price for the assets, to be so sold—
(a) obtaining quotations from parties dealing in the secured assets or otherwise interested in buying such
assets; or
.(b) inviting tenders from the public; or
(c) holding public auction; or
(d) by private treaty.
(2) The authorised officer shall serve to the borrower a notice of thirty days for sale of the movable secured assets.
under sub-rule (1) :
Provided that if the sale of such secured assets is being, effected by either inviting tenders from the public or bv
holding public auction, the secured creditor shall cause a public notice in two leading newspapers, one in vernaeulu
language, having sufficent circulation in that locality by setting out the terms of sale, which may include.—
(a) details about the borrower and the secured creditor;
(b) description of movable secured assets to be sold with identification marks or numbers, if any. on them;
(c) reserve price, if any, and the time and manner of payment;
(d) time and place of public auction or the lime after which sale by any other mode shall be completed;
(e) depositing earnest money as may be stipulated by the secured creditor;
(0 any other thing which the authorised officer considers it material for a purchaser to know in order to judge
the nature and value of movable secured assets.
(3) Sale by any methods other than public auction or public lender, shall be on such terms as may be settled
between the parties in writing.
7. Issue of certificate of sale.—(I) Where movable secured assets is sold, sale price of each lot shall be paid as pel
the lerms of the public notice or on the terms as may be settled hetwgen the parties, as the case may be, andan the event i f
default of payment, the movable secured assets shall be liable to be o£fe#ed for sale again.
(2) On payment of sale price, the authorised officer shall issue a certificate of .sale in the present i #orm as give"
Appendix-Ill to these rules specifying the movable secured assets sold, price paid and the name of the ,>i :b,.-ser and thercal'ic
the sale shall become absolute. The certificate of sale so issued shall be prima fa ••«' evidence of title of the purchaser.
 20_ THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—SEC. 3(H)]

(3) Where the movable secured assets are those referred in sub clauses dii) to (v) of clause (I) of sub-section (I)
of s 'dion 2 of the Ordinance, the provisions contained in these rule and rule 7 dealing with the sale of movable secured
as?- rs shall, mutatis mutandis, apply to such assets.
X Sale of immovable secured assets.—(1) Where the secured asset is an immovable property, the authorised
ofi er shiill take or cause to be taken possession, by delivering a possession notice prepared as nearly as possible in
Ap >endix IV to these rules, to the borrower and by affixing the possession notice on the outer door or at such conspicuous
pla e ot the property.

(2) The possession notice as referred to in sub-rule (I) shall also be published in two leading newspaper, one in
vei acular language having sufficient circulation in that locality, by the authorised officer.
(3) In the event of possession of immovable property is actually taken by the authorised officer, such property
shall be kept in his own custody or in the custody of any person authorised or appointed by him, who shall take as much
care of the properly in his custody as a owner of ordinary prudence would, under the similar circumstances, lake of such
pro; erty.
(4) The authorised officer shall take steps for preservation and protection of secured assets and insure them, it
ne> sary. till they are sold or otherwise disposed off.
(5) Belore effecting sale of the immovable property referred to in sub-rule (I) of rule 9, the authorised officer shall
obi. «n valuation of the property from an approved valuer and in consultation with the secured creditor, fix the reserve price
of the property and may sell the whole or any part of such immovabnie secured asset by any of the following methods:—

(a) by obtaining quotations from the persons dealing with similar secured assets or otherwise interested in
buying the such assets; or
(b) by inviting tenders from the public;
(c) by holding public auction; or
(d) by private treaty.
(6) the authorised officer shall serve to the borrower a notice of thirty days for sale of the immovable secured
asset , under sub-rule (5):
Provided that if the sale of such secured asset is being effected by either inviting tenders from the public or by
holding public auction, the secured creditor shall cause a public notice in two leading newspapers one in vernacular
language having sufficient circulation in the locality by setting out the terms of sale, which shall include, -
(a) the description of the immovable property to be sold, including the details of the encumbrances known to
the secured creditor;
(b) the secured debt for recovery of which the property is to be sold;
(c) reserve price, below which the property may not be sold;
.(d) tune and place of public auction or the time after which sale by any other mode shall be completed;
(e) depositing earnest money as may stipulated by the secured creditor;
(:; any other thing which the authorised officer considers it material for a purchaser to know in order to judge
ihe nature and value of the property.
(7 > Iv. cry notice of sale shall be affixed on a conspicuous part of the immovable property and may, if the authorised
officer tee :iis a fit. put on the web-site of the secured creditor on the Internet.
(X) Sale by any methods other than public auction or public tender, shall be on such terms as may be settled
belwec the parties in writing.
9. Time of sale, Issue of sale certificate and delivery of possession, etc.— (I) No sale of immovable property under
these rules shall lake place before the expiry of thirty days from the dale on which the public notice of sale is published in
newspapers as referred to in the proviso to sub-rule (6) or notice of sale has been served to the borrower.
(2 i The sale shall be confirmed in favour of the purchaser who has offered the highest sale price in his bid or tender
'. •; ipioiation or oiler to the authorised officer and shall be subject to confirmation by the secured creditor:
Provided that no saie under this rule shall be confirmed , if the amount offered by sale price is less than the reserve
;TJ C. specified tinder .sub-rule (5) of rule 9:
 »?Rcf ^ ! TOTO : 3THI«flFf 21

Provided further that if the authorised officer fails to obtain a price higher than the reserve price, he may, with the
consent oi the borrower and the secured creditor effect the sale at such price,
(3) On even,' sale of immovable property, the purchaser shall immediately pay a deposit of twenty five percent of
the amount of the sale price, to the authorised officer conducting the sale and in default of such deposit, the property shall
, 'ith be sold again.

>'4) The balance amount of purchase price payable shall be paid by the purchaser to the authorised officer on or
before the fifteenth day of confirmation of sale of the immovable property or such extended period as may be agreed upon
in writing between the parties.

(5) In default of payment within the period mentioned m sub-rule (4), the deposit shall be forfeited and the property-
shall be resold and the defaulting purchaser shall forfeit all claim to the property or to any part of the sum for which it may-
be subsequently sold.
(6) On confirmation of sale by the secured creditor and if the terms of payment have been complied with, the
authorised officer exercising 4fee power of sale shall issue a certificate of sale of the immovable property in favour of the
purchaser in the Form given in Appendix V to these rules.

(7) Where the immovable property sold is subject to any encumbrances, the authorised officer may, if he thinks fit,
allow the purchaser to deposit with him the money required to discharge the encumbrances and any interest due thereon
together with such additional amount that may be sufficient to meet the contingencies or further cost, expenses and interest.
as may be determined by him.

(8) On such deposit of money for discharge of the encumbrances, the authorised officer may issue or cause the
purchaser to issue notices to the persons interested in or entitled to the money deposited with him and take steps to make
the payment accordingly.

(9) The authorised officer shall deliver the property to the purchaser free from encumbrances known to the secured
creditor on deposit of money as specified in sub-rule (7) above.
(10) The certificate of sale issued under sub-rule (6i shall specifically mention that whether the purchaser has
purchased the immovable secured asset free from any encumbrances known to the secured creditor or not.
10. Appointment of Manager.— (1) The Board of Directors or Board of Trustees, as the case may be, may appoint
in consultation with the borrower any person (hereinafter referred to as the Manager) to manage the secured assets the
possession of which has been taken over by the secured creditor.
(2) The Manager appointed by-the Board of Directors or Board of Trustees, as the case may be, shall be deemed
to be an agent of the borrower and the borrower shall be solely responsible for the commission or omission of acts of the
Manager unless such commission or omission are due to improper intervention of the secured creditor or the authorised
officer. %-
(3) The Manager shall have power by notice in writing to recover any money from any person who has acquired
any of the secured assets from the borrower, which is due to may become due to the borrower.
(4) The Manager shall give such person who has made payment under sub-rule (3) a valid discharge as if he has
made payments to the borrower.
(5) The Manager shall apply all the monies received by him in accordance with the provisions contained in sub-
section (7 ' of Section 1 3 of the Ordinance.
11. Procedure for Recovery of shortfall of secured d e b t — (1) An application for recovery of balance amount by
any secured creditor pursuant to sub-section (10) of Section 13 of the Ordinance shall be presented to the Debts Recovery
Tribunal in the form annexed as Appendix VI to these rules by the authorised officer or his agent or by a duly authorised
legal practitioner, to the Registrar of the Bench within whose jurisdiction his case fails or shall be sent by registered post
addressed to the Registrar of Debts Recovery Tribunal.
(2) The provisions of the Debts Recovery Tribunal (Procedure) Rules, 1993 made under Recovery of Debts Due to
Banks and Financial Institutions Act, 1993 (51 of 1993), shall mutatis mutandis apply to any application filed by under sub-
rule CI).
(3) An application under sub-rule (1) shall be accompanied with fee as provided in rule 7 of the Debts Recovery
Tribunal (Procedure) Rules, 1993.
[F.No. I/3/2002-B.O.I]
SHEKHAR AGARWAL, Jt. Secy.
 22 THE GAZETTE OF INDIA : EXTRAORDINARY [PART D—SEC. 3(ii)]

APPENDIX-I
[rule-4(l)]
PANCHNAMA
WHERE AS;
We

Sr. NameofPanch Address Age Occupation

No. and
Father's/ Husband's
Name

The above mentioned Panchs on being called by Shri- . the authorised officer of-
(name of the Institution), under the Secuntisation and Reconstruction of Financial Assets and Enforcement of Security
(Second) Interest Ordinance, 2002 (Ord. 3 of 2002) and in exercise of the powers under Section 13(4) of the said Ordinance
today entered the premises of Shri/M/s at , and demanded the payment of the dues mentioned in
the demand notice dated in respect of Loan Account bearing No. and on its non-payment, taken over possession
of movable properties as detailed in the inventory attached to this Panchnama between the hours M and
M in our presence.
We also hereby state that during take over of possession -(to be filled in case of occurrence of any
incidence)
Therefore, we declare that the facts of the Panchnama mentioned herein are true and correct to the best of our
observations and knowledge.
1. Signature Date Time
Name
Address

2. -do-
Drawn before me Authorised Officer

APPENDDC-D
^ [rule-4(2)]
INVENTORY
Inventory of movables taken possession in Loan Account bearing No. Inventory of
movable properties taken possession of at the premises of Shri/M/s- Plot No. -/Gala N o . —
H.no, , Street No. of —under Section 13(4) of the Secuntisation and Reconstruction of
Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002 and the Security Interest (Enforcement)
Rules. 2002 made thereunder, on this -day of 20—by Shn , authorised officer of
(name of the Institution) under the said Ordinance, between the hours — M.

Sr. Description of article Estimated Place where kept for safe

No. value custody (Name of the person
if necessary)
 ' ''TMIi— ^aT"g3(ii)] Wxl *FI T!'5rq3. : aTOTmi0! 23
Panchas:

Sr. Name and Address of Panch Signatures

No.

Drawn by me today the 20 at M.

Signature of Borrower/Representative
Signature of Authorised Officer

APPENDK-m
[rule-7(2)]
CERTTHCATE OP SALE
(for movable property)
Whereas
The undersigned being the authorised officer of the — (name of the institution) under the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002 and
in exercise of the powers conferred under Sub-section (12) of Section 13 read wilh rule 8 of the Security Interest (Enforcement)
Rule, 2002 has in consideration of the payment of Rs. (Rupees ) sold on behalf of the
• (name of the secured creditor/institution i n favour of (purchaser), the following movable
property secured in favour of the -(name of the secured creditor) by (the names of the
borrowers) towards the financial facility (description) offered by (secured creditor). The
undersigned acknowledge the receipt of the sale price in full and hand over the delivery and possession of the items listed
below.
Description of the movable property.
Sd/-
Authorised Officer
Date:
Place:

APPENDIX-IV
[rale-8(l)]
POSSESSION NOTICE ''
(for Immovable property)
Whereas
The undersigned being the authorised officer of the >
(name of the Institution) under the Securitisation and .Reconstruction of Financial Assets and Enforcement of
Security Interest (Second) Ordinance, 2002 (Ord. 3 of 2002) and in exercise of powers conferred under Section 13(12) read
with rule 9 of the Security Interest (Enforcement) Rules, 2002 issued a demand notice dated -calling upon the
borrower Shri /M/s to repay the amount mentioned in the notice being Rs.
(in words ) with in 60 days from-the date of receipt of the said notice.
The borrower having failed to repay the amount, notice is hereby given to the borrower and the public in general
that the undersigned has taken possession of the property described herein below in exercise of powers conferred on him/
her under Section 13(4) of the said Ordinance read with rule 9 of the said rules on this — day of of
the year .
 24 ^ THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]

The borrower in particular and the public in general is hereby cautioned not to deal with the property and any
dealings with the property will be subject to the charge of the (name of the Institution) for an amount Rs.—
—and interest thereon.

Description of the Immovable Property

All that part and parcel of the property consisting of Flat No. /Plot No. In Survey No. /City or Town
Survey No. /Khasara No. Within the registration Sub-district and District
Bounded;
On the North by
On the South by
On the East by
On the West by

Sd/-
Authorised Officer
(Name of the Institution)

Date :

Place;

APPENDK-V

[rule-9(6)l
SALE CERTIFICATE

(for Immovable property)

Whereas
The undersigned being the authorised officer of the (name of the Institution) under the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance. 2002 (Ord.
3 of 2002) and in exercise of the powers conferred under Section 13 read with rule 12 of the Security Interest (Enforcement)
Rules, 2002 sold on behalf of the • (name of the secured creditor/institution) in favour of (purchaser),
the immovable property shown in the schedule below secured in favour of the (name of the secured creditor)
by- • (the names of the borrowers) towards tlrcHnancial facility —• (description) offered by
(secured creditor). The undersigned acknowledge the receipt of the sale price in full and handed over the
delivery and possession of the scheduled property. The sale of the scheduled property was made free from all encumbrances
known to the secured creditor listed below on deposit of the money demanded by the undersigned.

DESCRIPTION OF THE MOVABLE PROPERTY

All that part and parcel of the property consisting of Flat No. /Plot No.
In Survey No.— /City or Town Survey No. /Khasara No.

Within the registration sub-district and District

Bounded;
On the North by
On the South by
On the East by
On the West by-
 'Hirer SR TFSPTS -
List of encumbrances

:
Authorised Officer
(Name of the Institution)
Date :
Place :

APPENDIX VI
FORM
[Sec ruie 11(1)]
Application under sub-section (10) of Section 13 of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (Second) Ordinance, 2002
For use in Office.
Date of ftfi n s
Date of receipt by post—
Registration No.

Signature
Registrar

IN THE. DEBTS RECOVERY TRIBUNAL

[Name of the place]
BETWEEN
A.B. APPLICANT

AND
CD. DEFENDANT

Delete whichever is not applicable.

DETAILS OF APPLICATION:
1. Particulars of the applicant
(i) Name of the applicant
(ii) Address of Registered Office :
(iii) Address for service of all notices:
2, Particulars of the (defendant):
(i) Name of the (defendant;:
(ii i Office address of the (defendant) :
i iii; Address for service of ail notices:
3. Jurisdiction of the Tribunal:
The applicant declares that the subject-matter of the
recovery of debt due falls within the jurisdiction of
the Tribunal.
26 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(H)]

4. Limitation :

The applicant further declares that the application is

within the limitation prescribed in section 24 of the
Recovery of Debts Due to Banks and Financial
Institutions (Act), 1993.
». Facts of the case :
The facts of the case are given below: -[Give-here a
concise statement of facts in a chronological order,
each paragraph containing as nearly as possible a
separate issue, fact or otherwise].
(\ Details of recoveries made by sale of securities :
[Give here security wise details of saie/s conducted
and realizations, appropriations of sale proceeds
towards, costs interest and principal amount and the
balance amount to be recovered.]

'. Relies sought :

In view of me facts mentioned in para 5 above, the
applicant prays for the the following relief(s) :-
[Specify below the relief(s) sought explaining the
ground for relief(s) and the legal provisions (if any
relief upon).]
Iterim order, if prayed for:
Pending final decision on the application, the
applicant seeks issue of the following interim order—
[Give here the nature of the interim order prayed for
with reasons,]
9. Matter not pending with any other court, etc :
The applicant further declares that the matter
egarding which this application has been made is
not pending before any court of law or any other
luthority or any other Bench of the Tribunal.
10. Particulars of Bank Draft/Postal Order in respect
.if the application fee :
I) Name of the Bank on which drawn :
'2) Demand Draft No :
or

1) Number of Indian Postal Order(s):

2) Name of the issuing Post Office :
v
) Date of issue of Postal Order(s):
4) Post Office at which payable :
11. Details of Index:
An index in duplicate containing the details of the
documents to be relied upon is enclosed.
[Such documents should include copies of sale
certificates or any other documents relating to sale
of secured assets and sale proceeds realised],
[HPT II— Tgtrg3(ii)j MR?f ^ Tim? : smmw
12. List of enclosures :
Verification
(Name in full and block letters) spn/daughter/wife of Shri
-being the- —(designation) (name of
the company) holding a valid power of attorney from- --(name of the company) do hereby verify
that the contents of paras 1 to ! ! are true to my personal knowledge and belief and that I have not suppressed any material
facts.

Signature of the applicant

Place:
Date :

To
The Registrar

Printed by the Manager, Govt, of India Press. Ring Road. Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
16 THEGAZETTEOFINDIA:EXTRAORDINARY [PART II—SEC. 3(ii)]

[•qn. u 1/10/2005-^rM-I]

ftrxroT :~TJeT Ff*R, m^T ^ UWH "3 U ^T.3TL 1020(5q), cTKHsT 20-9-2002 ?RT y<*>ifem fen*

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION •
New Delhi, the 2nd February, 2007
S.O*. 103(E).— In exercise of the powers conferred by sub-section (1) and clauses
(b), (ba), (bb) and (be) of sub-section (2) of section 38 read with sections 17,18 and
sub sections (4), (10) and (12) of section 13 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
(54 of 2002), the Central Government hereby makes the following rules to amend
the Security Interest (Enforcement) Rules, 2002, namely:-

1. (1) These rules may be called the Security Interest (Enforcement)

. , Amendment Rules, 2007
(2) They shall come into force on the date of their publication in the
Official Gazette

2. (1) In the Security Interest (Enforcement) Rules, 2002 (herein after

referred to as "the said rules") for the word "Ordinance", wherever
they occur, the word "Act" shall be substituted.

(2) In the said rules, in rule 2, for clause (c), the following clause shall
be substituted, namely:-

" 'Act' means the Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act,
2002 (54 of 2002)";

3. In the said rules, after rule 3, the following rule shall be inserted, namely:-

"3A. Reply to Representation of the borrower

QTFTII—7aTjg3(ii)l *ng ^T jim^ •. arerrwi 17

(a) After issue of demand notice under sub-section (2) of section

13, if the borrower makes any representation or raises any
objection to the notice, the Authorized Officer shall consider
such representation or objection and examine whether the
same is acceptable or tenable.

(b) If on exaniining the representation made or objection raised

by the borrower, the secured creditor is satisfied that there is
a need to make any changes or modifications in the demand
notice, he shall modify the notice accordingly and serve a
revised notice or pass such other suitable orders as deemed
necessary, within seven days from the date of receipt of the
representation or objection.

(c) If on exanvining the representation made or objection raised,

the Authorized Officer comes to the conclusion that such
representation or objection is not acceptable or tenable, he
shall communicate within one week of receipt of such
representation or objection, the reasons for non-acceptance of
the representation or objection, to the borrower".

4. In the said rales, after rule 11, the following shall be inserted, namely:-
"12. Application to the Tribunal / Appellate Tribunal -
1) Any application to the Debt Recovery Tribunal under
sub-section (1) of section 17 shall be, as nearly as possible, in
the form given in Appendix VII to the rules.
2) Any application to the Appellate Tribunal under sub-
section (6) of section 17 of the Act shall be, as nearly as
possible, in the form given in Appendix VIII to tire said rules.
Any appeal to the Appellate Tribunal under section 18 of the
Act shall be, as near!}' as possible, in the form given in
Appendix IX to the said rules.

"13. Fees for applications and appeals under section 17 and 18 of

the Act-

(1) Every application under sub section (1) of section 17

or an appeal to the Appellate Tribunal under sub-section (1)
of section 18 shall be accompanied by a fee provided in the
sub-rule (2) and such fee may be remitted through a crossed
demand draft drawn on a bank or Indian Postal Order in
favour of the Registrar of the Tribunal or the Court as the
case may be, payable at the place where the Tribunal or the
Court is situated.

S
3 M GT/zJ -
18 THE GAZETTE OF INDIA; EXTRAORDINARY [PART II—SEC. 3 (it)j

(2) The amount of fee payable shall be as follows:

No. Nature of Application Amount of Fee payable
1 Application to a Debt Recovery
Tribunal under sub-section (1)
of section 17 against any of the
measures referred to in sub-
section (4) of section 13
(a) Where the applicant is a Rs.500 for every Rs.l lakh or part thereof
borrower and the amount of
debt due is less than Rs.lO
lakhs
(b) Where the applicant is a Rs.5000 + Rs.250 for every Rs.l lakh or
borrower and the amount of part thereof in excess of Rs.lO lakhs
debt due is Rs.lO lakhs and subject to a maximum of Rs. 1,00,000
above
(<0 Where the applicant is an Rs.125 for every Rupees One lakh or part
aggrieved party other than the thereof
borrower and where the
amount of debt due is less than
Rs.lO lakhs
(d) Where the applicant is an Rs.1250 + Rs.125 for every Rs.l lakh or
aggrieved party other than the part thereof in excess of Rs.lO lakhs
borrower and where the subject to a maximum of Rs.50,000/
amount of debt due is Rs.lO
lakhs and above
(e) Any other application by any Rs.200/-
person
2 Appeal to the Appellate Same fees as provided at clauses (a) to (e)
Authority against any order of serial number 1 of this rule
passed by the Debt Recovery
Tribunal under section 17

5. In the said rules, -

(i) in Appendix-Ill, for the words "receipt of the sale price", the words
and letters "of Rs. (Rupees . only"
shall be inserted;.

,(ii) in Appendix V, after the words "receipt of the sale price", the
words and letters "ofRs. . (Rupees only"
shall be inserted;
(iii) after Appendix VI, the following shall be inserted, namely:-
 *FRCT PRT Tpsm •. aRnwrn 19

'APPENDIX-VII

[See rule 12(1)]

Application under sub-section (1) of Section 17 of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

For use in Tribunal's Office

Date of filing

Date of receipt by post

Or

Registration No

Signature
Registrar

In the Debts Recovery Tribunal

(Name of the place)
Between
B Applicant(s)

and
C D Defendant(s)
"Delete whichever is not applicable,

Details of application:

1. Particulars of the applicant:—

(i) Name of the applicant:
(ii) Address of Registered Office :
(iii) Address for service of all notices

Particulars of the defendant:

(i) Name of the defendant:

(ii) Office address of the defendant:
(iii) Address for service of all notices

??4JA?-4
20 THEGAZETTEOF INDIA: EXTRAORDINARY [PART II—SEC. 3(ii)]

3. Jurisdiction of the Tribunal :--

The applicant declares that the subject matter
of this application falls within the jurisdiction
of the Tribunal.

4. Limitation: —
The applicant further declares that this
application is filed within the limitation
prescribed in sub-section (1) of Section 17 of
the Securitisation and Reconstruction of the
Financial Assets and Enforcement of Security
Interest Act, 2002.

5. Facts of the case :—

The facts of the case are given below :--
(Give here a concise statement of facts in a
chronological order, each paragraph
containing as nearly as possible a separate
issue, fact or otherwise as to how the applicant
is aggrieved).
6. Relief (s) sought :—
In view of the facts mentioned in paragraph 5
above, the applicant prays for the following
relief(s) :-
[Specify below the relief(s) sought explaining
the ground for relief(s) and the legal provisions
(if any) relied upon]
7. Interim order, if prayed for :--
Pending final decision on the application, the
applicant seeks issue of the following Interim
Order:- •
(Give here the nature of the interim order
prayed for with reasons).

8. Matter not pending with any other court, etc. :

The applicant further declares that the matter

regarding which this application has been
made is not pending before any court of law or
any other authority or any other Bench of the
Tribunal.

9. Particulars of Bank Draft/ Postal Order in

respect of the application fee in terms of rules
13 of these rules :-
(1) Name of the Bank on which drawn :
(2) Demand Draft No.:
Or
 (1) Number of Indian Postal Order(s):
(2) Name of the issuing Post Office :
(3) Date of Issue of Postal Order (s):
(4) Post Office at which payable :
10. Details of Index :-
An index in duplicate containing the details of
the documents to be relied upon is enclosed.

11. List of enclosures :—

Verification

son/daughter/wife
(Name in full and block letters)

of Shri , , the applicant / for and on behalf

of the applicant hereby solemnly verify that the contents of paras 1 to 11 are true
to my personal knowledge and belief and that I have not suppressed any
material facts.

Place :
Signature of the applicant
Date:

To
The Registrar.
22 THEGAZETTEOFINDIArEXTRAORDINARY [PART II—SEC. 3(ii)J

APPENDIX-VIII

[See rule 12(2)]

Application under sub-section (6) of Section 17 of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

For use in Appellate Tribunal's Office

Date of filing

Date of receipt by post

Or

Registration No.

Signature
Registrar

In the Debts Recovery Appellate Tribunal

(Name of the place)
Between
A B Applicant(s)

And

C D Defendant(s)

'Delete whichever is not applicable.

Details of application:

1. Particulars of the applicant :—

(i) Name of the applicant:
(ii) Address of Registered Office :
(iii) Address for service of all notices :

2. Particulars of the defendant :—

(i) Name of the defendant:

(ii) Office address of the defendant:
(iii) Address for service of all notices :
[TRii—w^3(ii)] nm ~m jr*m •. smwvn 23

3. Jurisdiction of the Appellate Tribunal :—

The applicant declares that the subject matter
of this application falls within the jurisdiction
of the Appellate Tribunal.

4. Facts of the case :-

The facts of the case are given below :--
The applicant submits that the
applicant/defendant had filed an application
under sub-section (1) of Section 17 of the of-the
Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest
Act, 2002, before the Hon'ble Debt Recovery
Tribunal (Place) on (date), which was
registered as , and is
still pending. The aforesaid application ought
to have been disposed off on or before

5. Relief (s) sought :-

In view of the facts mentioned in para 5 above,
the applicant prays for the following relief(s) :-
Direct the Hon'ble Debt Recovery Tribunal
(Place) to dispose of the said application
No at the earliest a n d / o r
pass any other suitable order in the interest of
justice and equity.
24 1HEGAZETTE0FINDIA:EXTRA0RDINARY [PART II—SEC. 3(ii)]

6. Matter not pending with any other court, etc.:-

The apphcant further declares that the matter
regarding which this application has been
made is not pending before any court of law or
any other authority or any other Bench of the
Tribunal.
7. Details of Index :-
An index in duplicate containing the details of
the documents to be relied upon is enclosed.
8. List of enclosures :-

Verification
I s o n / daughter/ wife
(Name in full and block letters)

of Shri the applicant

hereby solemnly verify that the contents of paras 1 to 7 are true to m y personal
knowledge and belief and that I have not suppressed any material facts.

Place : Signature of the applicant

Date:
To
The Registrar.

APPENDIX-IX

[See Rule 12(2)]

Appeal under Section 18 of the Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002

For use of Tribunal's office

Date of filing
Date of receipt by post .
Registration No. .
Signature
Registrar
 IN THE DEBTS RECOVERY APPELLATE TRIBUNAL
(Name of place)
Between
Appellant(s)/Judgement-Creditor(s)
and
Respondent(s)/Creditor (s) ;/i
Details of appeal:
I. Particulars of the Appellant(s)
(i) Name of the Appellant:
(ii) Address of the Registered office of the appellant:
(iii) Address for service of all notices:
II. Particulars of the respondent(s)
(i) Name(s) of respondent:
(ii) Office address of the respondent:
(iii) Address for service of all notices:
III. Jurisdiction of the Appellate Tribunal:
The appellant declares that the subject matter of the appeal falls within the
jurisdiction of the Appellate Tribunal.
IV. Limitation:
The appellant declares that the appeal is within the limitation prescribed
in sub-section (1) of Section 18 of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002.
V. Facts of the case:
(give here a concise statement of facts and grounds of appeal against the
specific order of DRT passed under * sub-section (3)/sub-section (4) of
Section 18 of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002.
VI. Relief(s) sought:
In view of the facts mentioned in paragraph V above, the appellant prays
for the following relief(s)
(Specify below the relief(s) sought explaining the grounds of relief(s) and
the legal provisions (if any) relied upon).
VII. Interim order, if prayed for-
Pending final decision on the appeal the appellant seeks issue of the
following interim order:
(Give here the nature of the interim order prayed for with reasons)
VIII. Matter not pending with any other court, etc.:
The Appellant further declares that the matter regarding which this appeal
has been made is not pending before any court of law or any other
authority or any other Tribunal(s).
IX. Particulars of Bank draft/Postal Order in respect of the deposit of debts
due in terms of sub-section (1) of Section 18 of the Act:
(1) Name of the bank on which drawn
(2) Demand Draft number
or
(1) Number of Postal Order(s)
:>f THF.rTA7F.TTF.OF INDIA: EXTRAORDINARY [PAKTII—SEC.3(ii)]

(2) Name of Issuing Post Office

(3) „ Date of Issue of Postal Order(s)
(4) Post Office at which payable
X. Particulars of bank draft, postal order in respect of the fee paid in terms of
rule 13 of these rules:
(1) Name of the bank on which drawn
(2) Demand Draft number
or
(1) Number of Postal Order(s)
(2) Name of Issuing Post Office
(3) Date of Issue of Postal Order(s)
(4) Post Office at which payable
XL Details of index-An index in duplicate containing the details of the
documents to be relied upon is enclosed.
XI. List of enclosures:
Verification
I (name in full block letters) son/ daughter /wife of the
appellant do hereby verify that the contents of paragraphs I to IX are true to my
personal knowledge and belief and that I have not suppressed any material
fact(s).
Signature of the Appellant
Place:
Date:
To
Registrar
Debts Recovery Tribunal
* Delete whichever is not applicable

[F. No. 1/10/2005-BO-I]

AMITABH VERMA, Jt. Secy.

Note : —The Principal rules were published in the Gazette of India vide S.O. number 1020(E),
dated 20-9-2002.

Printed by the Manager, Govt, of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.