High Court of Punjab and Haryana

Majestic Hotels Limited v. IFCI Ltd. and Ors.

MANU/PH/2188/2015

04.08.2015

Banking

Assignment is a transaction independent of sale of secured asset

The assignment of debt by a secured creditor is an independent transaction, which does not affect either the liability or the rights of the borrower. In a petition against transfer of debt by the secured creditor, the Court held it to be a separate issue to the challenge of notice of sale of property. It added that the transfer of debt was a commercial decision of the secured creditor and the borrower could not have any say in the same.

Relevant

Section 13 SARFAESI, 2002 Act ICICI Bank Limited vs. Official Liquidator of APS Star Industries Ltd. and Ors. MANU/SC/0782/2010

Tags : security assignment secured creditor transfer of debt

Share :