law: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  5. Acquisition of
  
  rights or interest in financial assets  .- 
  1.     
  
    Notwithstanding
  
  anything contained in any agreement or any other law for the time being in
  
  force, any securitisation company or reconstruction company may acquire
  
  financial assets of any bank or financial institution,-
  a.      by issuing a
  
  debenture or bond or any other security in the nature of debenture, for
  
  consideration agreed upon between such company and the bank or financial
  
  institution, incorporating therein such terms and conditions as may be agreed
  
  upon between them; or
  b.     by entering into an
  
  agreement with such bank or financial institution for the transfer of such
  
  financial assets to such company on such terms and conditions as may be agreed
  
  upon between them.
  1.     
  
  
  2.     
  
    If
  
  the bank or financial institution is a lender in relation to any financial
  
  assets acquired under sub-section (1) by the securitisation company or the
  
  reconstruction company, such securitisation company or reconstruction company
  
  shall, on such acquisition, be deemed to be the lender and all the rights of
  
  such bank or financial institution shall vest in such company in relation to
  
  such financial assets.
  3.     
  
    Unless
  
  otherwise expressly provided by this Act, all contracts, deeds, bonds,
  
  agreements, powers-of-attorney, grants of legal representation, permissions,
  
  approvals, consents or no-objections under any law or otherwise and other
  
  instruments of whatever nature which relate to the said financial asset and
  
  which are subsisting or having effect immediately before the acquisition of
  
  financial asset under sub-section (1) and to which the concerned bank or
  
  financial institution is a party or which are in favour of such bank or
  
  financial institution shall, after the acquisition of the financial assets, be
  
  of as full force and effect against or in favour of the securitisation company
  
  or reconstruction company, as the case may be, and may be enforced or acted
  
  upon as fully and effectually as if, in the place of the said bank or financial
  
  institution, securitisation company or reconstruction company, as the case may
  
  be, had been a party thereto or as if they had been issued in favour of
  
  securitisation company or reconstruction company, as the case may be.
  4.     
  
    If,
  
  on the date of acquisition of financial asset under sub-section (1), any suit,
  
  appeal or other proceeding of whatever nature relating to the said financial
  
  asset is pending by or against the bank or financial institution, save as
  
  provided in the third proviso to sub-section (1) of section 15 of the Sick
  
  Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) the same shall
  
  not abate, or be discontinued or be, in any way, prejudicially affected by
  
  reason of the acquisition of financial asset by the securitisation company or
  
  reconstruction company, as the case may be, but the suit, appeal or other proceeding
  
  may be continued, prosecuted and enforced by or against the securitisation
  
  company or reconstruction company, as the case may be.