Mere Possession Of Assets Of Corporate Debtor U/S 13(8) Of SARFAESI Act Does Not Confer Title On Creditor: NCLT Kochi

The NCLT (National Company Law Tribunal), Kochi, ruled that "mere possession over assets of corporate debtor under Section 13(8) of SARFAESI Act does not confer title on creditor." Section 13(8) allows secured creditors to take possession of secured assets. The tribunal clarified that while possession enables the creditor to enforce their security interest, it does not automatically transfer ownership of the asset to the creditor. Title can only be transferred through a proper sale or other legal means. This distinction is crucial for property rights and insolvency proceedings, ensuring due process in asset realization.