Non-Applicability of SARFAESI ACT

Non-Applicability of Sarfeasi ACT in certain cases:

1. lien on any goods, money or security given by or under the Indian Contract Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force;

2. pledge of movable within the meaning of Section 172 of the Indian Contract Act, 1872;

3.creation of any security in any aircraft as defined in clause(1) of Section 2 of the Aircraft Act, 1934;

4.creation of security interest in any vessel as defined in clause (55) of Section 3 of the Merchant Shipping Act, 1958;

5.any conditional sale, hire-purchase or lease or any other contract in which no security interest has been created;
any rights of unpaid seller under Section 47 of the Sale of Goods Act, 1930;

6.any properties not liable to attachment or sale under Section 60 of the Code of Civil Procedure, 1908;

7.any security interest for securing repayment of any financial asset not exceeding one lakh rupees;

8.any case in which the amount due is less than 15% of the principal amount and interest thereon.

9. Agriculture Loans