Section 18C of the SARFAESI Act (inserted by Act 30 of

Solution

Section 18C(1) provides that where an application or appeal is expected to be made or has been made under Section 17(1), Section 17A, Section 18(1), or Section 18B, the secured creditor or any person claiming a right to appear before the Tribunal, Court of District Judge, Appellate Tribunal, or High Court on the hearing of such application or appeal may lodge a caveat in respect thereof. Under Section 18C(2), the caveator must serve notice of the caveat by registered post (acknowledgement due) on the person by whom the application has been or is expected to be made. The caveat ensures that the caveator is notified and heard before any ex-parte interim order is made in the proceedings.