Section 32 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
No suit, prosecution or other legal proceedings shall lie against 1[the Reserve Bank or the Central Registry or any secured creditor or any of its officers] for anything done or omitted to be done in good faith under this Act.
Summary
- This section protects certain authorities and people from being sued or prosecuted for doing their jobs.
- The protection covers the Reserve Bank, the Central Registry, secured creditors (lenders), and their officers.
- They are safe from legal proceedings as long as their actions, or failures to act, were done in good faith under this law.
- Good faith means they acted honestly and with the genuine belief that they were following the rules of this Act.
Practical examples
FAQ
1. Can a bank manager be sent to jail for taking over a business if they followed this law?
No. As long as the manager acted in good faith under the rules of this Act, they are protected from prosecution.
2. Does this mean a bank can do whatever it wants without consequences?
No. The protection only applies to actions taken in good faith. If a bank acts maliciously, fraudulently, or outside the powers of this Act, they can still be sued.
Test yourself
Q1.Under Section 32 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what is the primary condition for an officer to be protected from legal proceedings?
Q2.Under Section 32 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which of the following entities is explicitly protected from prosecution?
Q3.Under Section 32 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what type of legal actions are barred against a secured creditor acting properly?
Q4.Under Section 32 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, if a bank officer intentionally breaks the rules of the Act to harass a borrower, are they protected?