CAIIB Paper 4 Module C Quiz 5

The Act’s delayed-payment protections apply to qualifying micro and small suppliers as defined by the statute. Registration status and the relevant statutory definitions should be verified for the facts.

The appointed day is defined by the Act and is central to calculating the statutory payment timeline and interest where the agreement does not provide a valid earlier date.

The Act includes acceptance/deemed acceptance concepts and a specialised dispute-resolution route. The existence and timing of a dispute can matter, but it does not automatically extinguish the supplier’s statutory rights.

The Act provides for deemed acceptance where the buyer fails to make a written objection within the prescribed period after delivery of goods or rendering of services.

Receivables finance requires diligence on supplier eligibility, invoice acceptance, disputes, due dates and enforceability. MSMED protections can be relevant but do not guarantee collection.

A section 13(2) notice must demand discharge of the borrower’s liabilities within 60 days and contain the particulars required by law, including the amount payable and secured assets intended to be enforced.

Section 13(3A) requires consideration and communication of reasons for rejection. The Supreme Court has distinguished this response from measures under section 13(4); the section 17 remedy generally follows a section 13(4) measure.

Enforcement must comply with the Act and applicable rules, including prescribed notices, possession procedures and sale requirements. A default does not automatically transfer ownership to the bank.

The enforcement rules prescribe valuation and reserve-price procedures and other safeguards for sale. Compliance helps ensure lawful and transparent realisation of the security.

The secured creditor applies proceeds to costs and dues as permitted by law. Surplus is dealt with in accordance with the statutory framework and the rights of persons entitled to it.

SARFAESI section 31(i) excludes security interests created in agricultural land. Classification is fact-sensitive and does not necessarily eliminate all other lawful recovery remedies.

SARFAESI action is subject to applicable limitation law and judicial interpretation. Banks should carefully review accrual, acknowledgments, part-payments and the nature of the security/enforcement measure.

Section 31 contains specific exclusions, including security interests created in agricultural land. Other categories depend on the precise statutory conditions.

SARFAESI contains a minimum-amount restriction in section 31(h), with the relevant threshold and exceptions determined by the current statutory text. Verify the latest amendment/notification before relying on a figure.

Secured creditor status depends on a legally valid security interest and applicable creation, documentation and registration requirements, including CERSAI registration where required.

The DRT adjudicates recovery applications; the Recovery Officer executes the recovery certificate using the statutory machinery.

Creditors should file claims in the prescribed form and timeline under the IBC regulations. Late claims may be considered under applicable rules, but delay can create procedural and evidentiary difficulties.

The resolution plan must comply with section 30(2), including statutory requirements for operational creditors and other stakeholders. Their recovery is not invariably full or zero; the Code’s minimums and plan terms apply.

Section 53 establishes a priority waterfall for distribution of liquidation proceeds, including insolvency costs, specified secured/worker claims and other categories in the statutory order.

Under section 52, a secured creditor may choose to relinquish its security to the liquidation estate or realise it separately. If relinquished, its claim is treated within the section 53 distribution waterfall.