JAIIB LRAB Unit 25 - Miscellaneous Provisions

Non-applicability of SARFAESI Act

(i) A lien, on any goods, money or security given by or under the Indian Contract Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force.
(ii) A pledge of movable, within the meaning of Section 172 of the Indian Contract Act, 1872. (iii) Creation of security interest in any vessel as defined within the meaning of Section 3(55) of the Merchant Shipping Act, 1958.
(iv) Creation of security in any aircraft as defined in Section 2 of Aircraft Act 1934.
(v) Any conditional sale, hire-purchase or lease or any other contract in which no security Interest has been created.
(vi) Any rights of unpaid seller under Section 47 of the Sale of Goods Act, 1930.
(vii) Any properties not liable for attachment or sale under the first proviso to Section 60(1) of the Civil Procedure Code, 1908.
(viii) Any security interest for securing repayment of any financial asset not exceeding one lakh rupees
(ix) Any security interest created in agricultural land
(x) Any case, in which the amount due is less than twenty per cent of the principal amount and
interest thereunder.

• Securities not in possession of the bank or financial institutions are only covered by this act.
• Civil courts not to have jurisdiction, jurisdiction has conferred to DRT and AT.
• Section 36 SARFAESI Act :The action has to be taken within 3 years from date on which a cause of action arose.