Rights and obligations of parties to contract for assignment of receivables
Section 11 of the Factoring Regulation Act, 2011 deals with 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 section 8 before any demand is made on it by the assignee and until notice is served on the debtor, the debtor shall be entitled to make payments The Act came into force on 02 Apr 2012.
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 section 8 before any demand is made on it by the assignee and until notice is served on the debtor, the debtor shall be entitled to make payments to the assignor in respect of assigned receivables in accordance with the original contract and such payment shall fully discharge the debtor from corresponding liability under the original contract.
Explanation.—For the removal of doubts, it is hereby clarified that nothing contained in this section shall affect the rights of debtor to make payment to the assignee under section 9.
Section 11, The Factoring Regulation Act, 2011 (Act 12 of 2012).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Questions about Section 11
What does Section 11 of the Factoring Regulation Act deal with?
Section 11 of the Factoring Regulation Act is headed "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 section 8 before any demand is made on it by the assignee and until notice is served on the debtor, the debtor shall be entitled to make payments
How do I find court cases under Section 11 of the Factoring Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Factoring Regulation Act 11, section 11 Factoring Regulation Act, section 11 of the Factoring Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 11 of the Factoring Regulation Act, and has it changed?
Its own text turns on section 8 (Notice to debtor and discharge of obligation of such debtor), section 9 (Discharge of liability of debtor on payment to assignee), so none of them can safely be read on its own.
When did Section 11 of the Factoring Regulation Act come into force?
Section 11 of the Factoring Regulation Act, cited as Factoring Regulation Act 11, came into force on 02 Apr 2012, having been enacted on 22 Jan 2012. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1098 words
- 19. Registration of certain assignments of receivables transactions307 words
- 31. Provisions of this Act not to apply or affect in certain cases298 words
- 22. Penalties for non-compliance of direction of Reserve Bank296 words
- 7. Assignment of receivables247 words
- 25. Offences by factors226 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.