Multiple choice

Under which of the following Acts can the bank sell security charged to it without court intervention?

  1. Indian Contract Act, if it is pledged

  2. SARFAESI Act, if it is hypothecated or mortgaged

  3. Companies Act, if charge is registered with Registrar of Companies

  4. Options (1) and (2) both

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The banks can sell security charged to it without court intervention under Indian Contract Act, if it is pledged, and under SARFAESI Act, if it is hypothecated or mortgaged.