Multiple choice

Recovery of debt due to banks and Financial Institutions Act, 1993 Section 2 (g) provides definition of ‘debt’. It does not include any liability

  1. inclusive of interest which is secured

  2. inclusive of interest which is not secured

  3. payable under a decree or order of a civil court

  4. recoverable by the bank from its employee who committed a fraud
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Recovery of debt due to banks and Financial Institutions Act, 1993 Section 2(g) states that "debt” means any liability (inclusive of interest) which is claimed as due from any person by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application.

Thus, option 4 is the most suitable option. 

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