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      Question

      Section 26D of the SARFAESI Act (Chapter IVA) provides

      that the right of enforcement of securities is available to which category of creditors?
      A Any creditor who has registered its security interest under Chapter IVA Correct Answer Incorrect Answer
      B Any creditor holding a debt of more than Rs. 1 crore Correct Answer Incorrect Answer
      C Only a creditor who is a secured creditor as defined in Section 2(1)(zd) and has registered under Chapter IV Correct Answer Incorrect Answer
      D Any creditor who has obtained a recovery certificate from the DRT Correct Answer Incorrect Answer
      E Any debenture trustee registered with SEBI Correct Answer Incorrect Answer

      Solution

      Section 26D provides that the right of enforcement of securities under the SARFAESI Act is available to a creditor who is a 'secured creditor' as defined in Section 2(1)(zd) and who has registered the security interest under Chapter IV (Central Registry provisions). Other creditors who register under the extended framework of Chapter IVA get the benefit of public notice and priority under Section 26C, but they do NOT get the self-help enforcement rights of Section 13. This two-tier structure - registration open to all creditors but enforcement rights reserved for secured creditors - is a foundational design feature of Chapter IVA introduced by the 2016 Amendment Act.

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