Legal Question in Securities Law in India
Can a Mumbai based Asset reconstruction company can enforce the title based Mortgage Deed & Deed of Hypothecation against a Chennai-based Public Limited Company in order to secure its debts by using the property which is registered in Chennai? If yes, then which rules and regulation will assist the asset reconstruction company?
1 Answer from Attorneys
Why you think they cannot ?
A company based in any part of India can enforce their security interest in any other part of the India, without any restrictions.
So a mumbai based ARC can enforce its security interest in Chennai based property. There is no embargo.
However, if you are asking about territorial jurisdiction of the court, then yes, mumbai company will have to go to Chennai court to enforce the recovery. Such proceedings have to be filed in Chennai only and not mumbai.
However this is subject to following (1) Cause of action, (2) Regd. office of Chennai Company is based, (3) Place were Loan transactions being executed.
Feel free to contact
Vivek N Mapara
www.vnmlaws.com
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