An Act to provide for and regulate assignment of receivables by making provision for registration therefore and rights and obligations of parties to contract ...
Short title, extent and commencement
1. This Act may be called the Factoring Regulation Act, 2011. 2. It extends to the whole of India. 3. It shall come into force on such date as...
In this Act, unless the context otherwise requires, a. assignment means transfer by agreement, of undivided interest of any assignor in any receivable d...
|Chapter II||Registration of Factors|
Registration of factors
1. No factor shall commence or carry on the factoring business unless it obtains a certificate of registration from the Reserve Bank to commence or carry...
Provisions of nonbanking financial companies apply to factor
All provisions of Chapter IIIB of the Reserve Bank of India Act, 1934 relating to non-banking financial companies which have been granted a certificate of reg...
Requirement for registration as a factor not to apply to bank or Statutory corporation or Government company
Nothing contained in section 3 shall apply to a bank or any corporation established under an Act of Parliament or State Legislature, or a Government Company a...
Powers of Reserve Bank to give directions and to collect information from factors
1. The Reserve Bank may, at any time by general or special order, direct that every factor shall furnish to it, in such form, at such intervals and withi...
|Chapter III||Assignment of Receivables|
Assignment of receivables
1. Any assignor may, by an agreement in writing, assign any receivable due and payable to him by any debtor, to any factor, being the assignee, for a con...
Notice to debtor and discharge of obligation of such debtor
Any assignee of a receivable shall not be entitled to demand payment of the receivable from the debtor in respect of such receivables unless notice of such as...
Discharge of liability of debtor on payment to assignee
Where a notice of assignment of receivable is given by the assignor or the assignee, as the case may be, under section 8 the debtor on receipt of such notice,...
Payment made by debtor to assignor to be held in trust for benefit of assignee in certain cases
Where no notice of assignment of receivables is given by the assignor or under his authority by the assignee, any payment made by the debtor in respect of suc...
|Chapter IV||Rights and Obligations of Parties to Contract for Assignment of Receivables|
Rights and obligations of parties to contract for assignment of receivables
Without prejudice to the provisions contained in any other law for the time being in force, the debtor shall have the right to notice of assignment under sect...
Liability of debtor
Where a notice of assignment as referred to in section 8 is served, the debtor shall,a. Intimate the assignee the details of the deposits or advance or p...
Assignor to be trustee of assignee
Notwithstanding anything to the contrary contained in any other law for the time being in force, where a debtor makes any payment to an assignor which represe...
Liability of debtor in case of an assignor being micro or small enterprises
1. If the assignor of receivables is a micro or small enterprise, the liability of the debtor to make payment due on assigned receivables shall be subjec...
Principle of debtor protection
1. Save as otherwise provided in this Act, any assignment of the receivable shall not, without the express consent of the debtor in writing, affect the r...
Defences and right of set off of debtor
In a claim by the assignee against the debtor for payment of the assigned receivable, the debtor may raise against the assignee, a. all defences and rig...
Modification of original contract
1. Any agreement made before service of notice, under section 8, of the assignment of a receivable between the assignor and the debtor that affects the a...
Breach of contract
If the assignor commits any breach of the original contract with the debtor, such breach shall not entitle the debtor to recover from the assignee any sum pai...
|Chapter V||Registration of Assignments|
Registration of certain assignments of receivables transactions
1. Every factor shall file, for the purposes of registration, the particulars of every transaction of assignment of receivables in his favour with the Ce...
1. The particulars of transactions of assignment of receivables entered in the Central Register of such transactions under section 19 shall be open durin...
|Chapter VI||Offences and Penalties|
If a default is made in filing under section 19 the particulars of any transaction of assignment of receivables and realisation of receivables by a factor, su...
Penalties for non
1. If any factor fails to comply with any direction issued by the Reserve Bank under section 6, the Reserve Bank may impose a penalty which may extend to...
If any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules made there under, for which no sp...
Cognizance of offences
1. No Court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by an officer of the Reserve Bank, gen...
Offences by factors
1. Where an offence under this Act has been committed by a factor, every person who at the time the offence was committed was in charge of, and was respo...
Provisions of this Act to override other laws
The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any in...
Application of other laws not barred
The provisions of this Act or the rules made there under shall be in addition to and not in derogation of the Negotiable Instruments Act, 1881 (26 of 1881), t...
No assignee of any receivable shall be entitled to take any measures for recovery of any assigned receivable, through any court or Tribunal unless his claim i...
Confidentiality of information
Save as otherwise provided in this Act, or unless required to do so by an order passed by any Court or Tribunal or any other statutory authority under any pro...
Power to exempt
1. The Central Government may, by notification in the public interest, direct that any of the provisions of this Act,a. shall not apply to such clas...
Provisions of this Act not to apply or affect in certain cases
1. The provisions of this Act shall not apply to any assignment of receivables arising under or from the following transactions, namely:a. any merger...
Power of Central Government to make rules
1. The Central Government may, in consultation with the Reserve Bank, by notification and in the Electronic Gazette as defined in clause (5) of sub-secti...
Laying of rules
Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period ...
Power to remove difficulties
1. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in Official Gazette, make such...
Amendments to certain enactments
The enactments specified in the Schedule shall be amended in the manner specified therein....
(See section 35) Year Act No. Short Title Amendment1899 The Indian After section 8C, the following section Stamp Act, shall be inserted, namely: 1899 8D....