(3) Notwithstanding anything containing in Sub-section (1) and In case the collateral is sold at a price higher than the amount to be recovered, the excess amount shall be refunded to the debtors.
(2) In case the property kept as collateral is sold at a price lesser than the amount to be realized from the debtor by the person who has the collateral under Sub-section (1), the shortfall may be recovered form other assets of the debtors. (1) In case a credit has been obtained by pledging any property as collateral and the debtor fails to repay the credit or interest thereon, if any, within the prescribed period, the person who has taken the collateral may initiate action according to, law and realize the amount to be realized in consideration of that credit by selling or auctioning the collateral according to current market price or transfer the title to such collateral subject to law in case it can not be sold or auctioned. Rights of person obtaining collateral or deposit : (2) In case the collateral or deposit kept under Sub-section (1) has been or can be divided into different parts, the collateral or deposit may be returned to the extent covered by the portion of the credit repaid or work performed.ģ7. (1) Except when otherwise provided for in the contract, the collateral obtained for a credit shall be returned after the repayment of the credit, or the deposit obtained for a work shall be refunded to the concerned person after the completion of that work. (2) In case a collateral has been obtained while supplying a credit, the credit and interest thereon, and incase any deposit has been obtained to perform any work the other expenses relating to that work, as well as the expenses incurred for looking after the collateral or deposit, shall also be deemed to have been included in the contract relating to collateral or deposit.ģ6. Explanation: For the purpose of this Chapter, the term ‘property’ shall denote any movable or immovable property, and title or document establishing title to that property. (1) In case any person has obtained a collateral while supplying credit to anybody as a security for that credit, or obtained any property as a deposit in the form of a guarantee to perform the concerned work while having any work performed a contract relating to collateral or deposit shall be deemed to have been concluded. Contracts relating to collateral or deposit :
Contracts relating to Collateral and Depositģ5.
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