Section 15: Manner and effect of take over of management.

Q: What does Section 15 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) deal with?

Section 15 SARFAESI pertains to "Manner and effect of take over of management.". It is part of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a legislation enacted by the Parliament of India. Section 15 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs manner and effect of take over of management. As verified on 22 May 2026.

Q: Is Section 15 SARFAESI still in force?

Yes, Section 15 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is currently in force across the Republic of India.

Q: What is धारा 15 SARFAESI?

धारा 15 SARFAESI is the Devanagari Hindi reference for Section 15 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Section 15 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs manner and effect of take over of management. As verified on 22 May 2026.

Q: What is Dhara 15 SARFAESI?

Dhara 15 SARFAESI is the Roman Hindi reference for Section 15 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. "Dhara" means "Section" in Hindi. Section 15 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs manner and effect of take over of management. As verified on 22 May 2026.

Q: How to cite Section 15 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002?

Cite as: "Section 15, The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)" in legal briefs. For academic writing, use the BlueBook format: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, 2002, § 15 (India).

Law on Tips Editorial Board

(1) 1[When the management of business of a borrower is taken over by a 2[asset reconstruction companyunder clause (a) of section 9 or, as the case may be, by a secured creditor under clause (b) of sub-section (4) of section 13], the secured creditor may, by publishing a notice in a newspaper published in English language and in a newspaper published in an Indian language in circulation in the place where the principal office of the borrower is situated, appoint as many persons as it thinks fit—

(2) On publication of a notice under sub-section (1),—

(3) Where the management of the business of a borrower, being a company as defined in the Companies Act, 1956 (1 of 1956), is taken over by the secured creditor, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such borrower,—

(4) Where the management of the business of a borrower had been taken over by the secured creditor, the secured creditor shall, on realisation of his debt in full, restore the management of the business of the borrower to him.

3[Provided that if any secured creditor jointly with other secured creditors or any asset reconstruction company or financial institution or any other assignee has converted part of its debt into shares of a borrower company and thereby acquired controlling interest in the borrower company, such secured creditors shall not be liable to restore the management of the business to such borrower.] 1. Subs. by Act 30 of 2004, s. 9, for "When the management of business of a borrower is taken over by a secured creditor " (w.e.f. 11-11-2004). 2. Subs. by Act 44 of 2016, s. 3, for "securitisation company or reconstruction company " (w.e.f. 1-9-2016) 3. Ins. by Act 44 of 2016, s. 13 (w.e.f. 1-9-2016).