Labour and Industrial Law, Consumer Protection, SARFAESI/Debt Recovery
Scope
This composite domain covers labour and industrial law, consumer protection and secured-debt recovery. Key statutes are the labour codes, the Consumer Protection Act, 2019, the SARFAESI Act, 2002 and the DRT Act, 1993. Questions test definitions, thresholds, remedies and limitation.
Core rules
- The four labour codes consolidate wages, industrial relations, social security and occupational safety. They retain concepts such as minimum wages, standing orders, trade unions and employee compensation.
- Consumer Protection Act, 2019 covers goods, services and unfair trade practices. A complaint must be filed within two years of the cause of action. District, State and National Commissions have pecuniary limits.
- SARFAESI allows a secured creditor to issue a 60-day demand notice under Section 13(2), take possession and sell the secured asset after compliance. It does not apply to agricultural land.
- DRT adjudicates applications by banks and financial institutions for recovery of debts.
Worked example
A bank classifies a loan as NPA and issues a Section 13(2) notice demanding Rs 40 lakh within 60 days. The borrower does not pay. The bank may then take possession of the mortgaged commercial property and sell it, provided it follows the statutory procedure. It cannot use SARFAESI against the borrower's agricultural land.
Traps
Confusing the SARFAESI notice period with the DRT limitation period; assuming consumer commissions hear criminal cases; and forgetting the two-year consumer limitation.