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    Question

    Under Section 14 of the SARFAESI Act, 2002, when a

    secured creditor applies to the Chief Metropolitan Magistrate (CMM) or District Magistrate (DM) for assistance in taking possession of secured assets, within what time must the CMM/DM pass an order after receiving the affidavit from the secured creditor?
    A Within 15 days, extendable to 30 days Correct Answer Incorrect Answer
    B Within 30 days, extendable up to a maximum of 60 days Correct Answer Incorrect Answer
    C Within 45 days, extendable up to 90 days Correct Answer Incorrect Answer
    D Within 60 days, extendable up to 4 months Correct Answer Incorrect Answer

    Solution

    Detailed Explanation:
    Section 14 of the SARFAESI Act, 2002 provides a mechanism for secured creditors to seek the assistance of the  Chief Metropolitan Magistrate (CMM) or District Magistrate (DM)  (within whose jurisdiction the secured asset is located) for taking possession or control of the secured asset. The CMM/DM, upon receiving the application accompanied by an affidavit from the secured creditor, is required to: ​

    • Pass an order within  30 days  of the date of application, and
    • The total time period shall  not exceed 60 days , the period can be extended for reasons to be recorded in writing, but the cap is 60 days in all

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