Section 26E: Priority to secured creditors.

Q: What does Section 26E of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) deal with?

Section 26E SARFAESI pertains to "Priority to secured creditors.". It is part of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a legislation enacted by the Parliament of India. Section 26E of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs priority to secured creditors. As verified on 19 May 2026.

Q: Is Section 26E SARFAESI still in force?

Yes, Section 26E of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is currently in force across the Republic of India.

Q: What is धारा 26E SARFAESI?

धारा 26E SARFAESI is the Devanagari Hindi reference for Section 26E of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Section 26E of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs priority to secured creditors. As verified on 19 May 2026.

Q: What is Dhara 26E SARFAESI?

Dhara 26E SARFAESI is the Roman Hindi reference for Section 26E of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. "Dhara" means "Section" in Hindi. Section 26E of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs priority to secured creditors. As verified on 19 May 2026.

Q: How to cite Section 26E of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002?

Cite as: "Section 26E, The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)" in legal briefs. For academic writing, use the BlueBook format: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, § 26E (India).

Law on Tips Editorial Board

¹[26E. Priority to secured creditors.—Notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority.

Explanation.—For the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code.]

1. Ins. by s. 18, ibid. (w.e.f. 24-1-2020).