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Section 41: Amendments of certain enactments

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

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Act 2002
Section 40 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 42

Legal Commentary & Landmark Judgments: Section 41

Section 41 of the SARFAESI Act, 2002 enacts comprehensive statutory amendments to existing financial and corporate enactments specified in the Schedule, integrating the SARFAESI recovery mechanism into the broader Indian legal architecture.

  • Statutory Consequential Amendments: Amends specified enactments including the Banking Regulation Act, 1949, the Companies Act, 1956, and the RDDBFI Act, 1993 as set out in the Schedule.
  • Harmonization of Recovery Regimes: Seamlessly aligns the jurisdiction of Debts Recovery Tribunals under RDDBFI with SARFAESI Section 17 Securitisation Applications.
  • Elimination of Statutory Inconsistencies: Reconciles banking regulatory definitions, loan classification standards, and corporate registration requirements with the new securitisation regime.
Key Landmark Precedents:
  • Transcore v. Union of India (2008) 1 SCC 125: The Supreme Court highlighted that Section 41 read with the Schedule systematically amended RDDBFI and Banking Regulation Act to weave an integrated statutory tapestry for expeditious NPA resolution and security enforcement.
  • Allahabad Bank v. Canara Bank (2000) 4 SCC 406: Laid down foundational principles on inter-statute harmonization between special debt recovery enactments and general company laws, as formalized via Section 41.
Courtroom Practice & Strategic Litigation Guidance:

In multi-jurisdictional proceedings where conflict is alleged between the SARFAESI Act and the Banking Regulation Act or RDDBFI Act, cite Section 41 to establish that Parliament consciously harmonized these enactments to operate cooperatively.

Section 40 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 42