AG defends new Securitisation Act

8216;8216;Under Section 132, the secured creditors would give notice to the borrower and the notice would annex a statement furnishing details of the amounts due and payable by the borrower coupled with a demand to pay the amount specified in the notice,8217;8217; Sorabjee suggested.

Sorabjee said if the borrower disputed the liability specified in the notice, it would be open to him to make a representation to the secured creditor within 10 days from the receipt of the notice and the latter would decide the representation within 60 days. He suggested that the secured creditor should give intimation of the steps taken by it to the borrower and if the borrower was aggrieved by any such action, it would have a 8220;right to approach the debt recovery tribunal DRT under Section 17 of the Act.8221;

The court was hearing a bunch of petitions challenging the constitutional validity of the Act empowering financial institutions FIs to securitise assets of defaulting companies and making it easier for the lending companies to recover their dues without going through the slow judicial process.