Provisions of this Act not to apply or affect in certain cases
Section 31 of the Factoring Regulation Act, 2011 deals with provisions of this Act not to apply or affect in certain cases. The provisions of this Act shall not apply to any assignment of receivables arising under or from the following transactions, namely:— (a) any merger, acquisition or amalgamation of business activities or sale or change in the ownership or legal status of the business; The Act came into force on 02 Apr 2012.
(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, acquisition or amalgamation of business activities or sale or change in the ownership or legal status of the business;
(b) transactions on any stock exchange or commodities exchange regulated by the Securities and Exchange Board of India constituted under the provisions of the Securities and Exchange Board of India Act, 1992(15 of 1992) or by the Forward Markets Commission under the Forward Contracts (Regulation) Act, 1952 (74 of 1952), respectively;
(c) financial contracts governed by netting agreements, except a receivable owed on the termination of all outstanding transactions;
(d) foreign exchange transactions except receivables in any foreign currency;
(e) inter-bank payment systems, inter-bank payment agreements or clearance and settlement systems relating to securities or other financial assets or instruments;
(f) bank deposits;
(g) a letter of credit or independent guarantee;
(h) rights and obligations of any person under the law governing negotiable instruments, negotiable warehouse receipts under the Warehousing (Development and Regulation) Act, 2007 (37 of 2007) or to instruments which are for the time being, by law or custom negotiable or any mercantile document of title to goods;
(i) sale of goods or services for any personal, family or household use;
(j) any assignment of loan receivables by a bank or non-banking financial company to another bank or non-banking financial company;
(k) securitisation transactions (including assignment of receivables to special purpose vehicles or trusts that issue securities against such receivables, bought from a single debtor or single group of debtors).
(2) Nothing contained in this Act shall affect the rights and obligations of a consumer, manufacturer, trader or service provider under the provisions of the Consumer Protection Act, 1986 (68 of 1986).
Section 31, The Factoring Regulation Act, 2011 (Act 12 of 2012).
Questions about Section 31
What does Section 31 of the Factoring Regulation Act deal with?
Section 31 of the Factoring Regulation Act is headed "Provisions of this Act not to apply or affect in certain cases". The provisions of this Act shall not apply to any assignment of receivables arising under or from the following transactions, namely:— (a) any merger, acquisition or amalgamation of business activities or sale or change in the ownership or legal status of the business;
How do I find court cases under Section 31 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 31, section 31 Factoring Regulation Act, section 31 of the Factoring Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 31 of the Factoring Regulation Act come into force?
Section 31 of the Factoring Regulation Act, cited as Factoring Regulation Act 31, 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
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 15 Oct 2026. This page is not a substitute for legal advice.