(1) Without prejudice to the provisions contained in any other law for the time being in force, an asset reconstruction company may, for the purposes of asset reconstruction, having regard to the guidelines framed by the Reserve Bank in this behalf, provide for any one or more of the following measures, namely:—
(a) the proper management of the business of the borrower, by change in, or take over of, the management, or by conversion of any part of debt into shares of a borrower company;
(b) the sale or lease of a part or whole of the business of the borrower;
(c) rescheduling of payment of debts payable by the borrower;
(d) enforcement of security interest in accordance with the provisions of this Act;
(e) settlement of dues payable by the borrower;
(f) taking possession of secured assets in accordance with the provisions of this Act;
(g) conversion of any portion of debt into shares of a borrower company.
Legal Commentary & Landmark Judgments: Section 9
Section 9 enumerates the statutory measures an Asset Reconstruction Company may take for the purpose of asset reconstruction and bad-debt resolution.
Section 9 provides ARCs with wide corporate turnaround and debt restructuring tools. Beyond mere liquidation or asset auction, it empowers ARCs to rehabilitate viable underlying businesses through management changes and debt rescheduling.