Answer: According to Rule 4(1) of the Security Interest (Enforcement) Rules 2002, where the possession of the secured assets to be taken by the secured creditor are movable property in possession of the borrower, the authorised officer shall take possession of such movable property in the presence of two witnesses after a Panchnama drawn and signed by the witnesses.

Answer: According to proviso to Rule 6(2) of the Security Interest (Enforcement) Rules 2002, if the sale of movable secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in the Form given in Appendix II-A to be published in two leading newspapers, including one in vernacular language having wide circulation in the locality.

Answer: According to Rule 6(2) of the Security Interest (Enforcement) Rules 2002, the Authorised Officer has to serve to the borrower a notice of thirty days for sale of the movable secured assets. However, the second proviso to Rule 6(2) of Security Interest (Enforcement) Rules 2002 provides that if sale of movable property by any one of the methods specified under sub-rule (1) fails and the sale is required to be conducted again, the authorised officer shall serve, affix and publish notice of sale of not less than fifteen days to the borrower for any subsequent sale.

Answer: According to Rule 7(2) of the Security Interest (Enforcement) Rules 2002, on payment of sale price, the authorised officer shall issue a certificate of sale in the prescribed form as given in Appendix III to Security Interest (Enforcement) Rules 2002, specifying the movable secured assets sold, price paid and the name of the purchaser and thereafter the sale shall become absolute. The certificate of sale so issued shall be prima facie evidence of title of the purchaser.