Section 26A of the SARFAESI Act empowers the Central Government to rectify any omission or mis-statement in the registration of a security interest. The Central Government can also extend the time for registration of a security interest.
The following are some of the key aspects of Section 26A of the SARFAESI Act:
- The rectification can be done on the application of the secured creditor, asset reconstruction company, or any other person interested.
- The rectification can be done only if the omission or mis-statement is accidental or due to inadvertence or some other sufficient cause.
- The rectification cannot prejudice the position of any creditor.
Here are some MCQs on the rectification by Central Government in matters of registration of security interest under the SARFAESI Act:
- Which of the following persons can apply to the Central Government for rectification of an omission or mis-statement in the registration of a security interest?
- Secured creditor
- Asset reconstruction company
- Any other person interested
- All of the above
- The answer is All of the above. Any person, including the secured creditor, asset reconstruction company, or any other person interested, can apply to the Central Government for rectification of an omission or mis-statement in the registration of a security interest.
- The rectification can be done only if the omission or mis-statement is:
- Intentional
- Accidental
- Due to inadvertence
- None of the above
- The answer is Accidental. The rectification can be done only if the omission or mis-statement is accidental or due to inadvertence.
- The rectification cannot prejudice the position of any creditor:
- True
- False
- Cannot be said
- Partially true
- The answer is True. The rectification cannot prejudice the position of any creditor. This means that the rectification cannot affect the rights of any other creditor who has already registered a security interest over the same asset.