Home  /  Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002  /  Section 24

Section 24: Modification of security interest registered under this Act

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2002
Section 23 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 25

Legal Commentary & Landmark Judgments: Section 24

Section 24 of the SARFAESI Act, 2002 governs the mandatory filing of particulars of any modification in the terms, conditions, extent, or operation of any security interest registered with the Central Registry.

  • Mandatory Modification Filing: Whenever credit limits are enhanced, mortgaged assets substituted, or terms modified, particulars must be filed with CERSAI within thirty days.
  • Application of Section 23 Timelines: Condonation of delay up to thirty additional days applies identically under the proviso to Section 24 upon payment of late fees.
  • Preservation of Priority Date: Failure to register modifications can relegate the enhanced or modified portion of the charge to a subordinate rank behind intervening creditors.
Key Landmark Precedents:
  • Axis Bank Ltd. v. State of Maharashtra, 2021 SCC OnLine Bom 312: The Bombay High Court held that enhancement of credit facilities requires prompt modification filing under Section 24 to preserve priority over intervening state tax claims.
  • Canara Bank v. Regional Provident Fund Commissioner, 2018 SCC OnLine Kar 3942: The Karnataka High Court noted that mortgage priority extends to enhanced limits only if modification was registered under Section 24 before an attachment was levied.
Courtroom Practice & Strategic Litigation Guidance:

When credit limits are enhanced or additional properties substituted into the security pool, verify that Section 24 modification is uploaded to CERSAI; in consortium lending, every change in inter-se sharing must be recorded under Section 24.

Section 23 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 25