Section 54
Obligation Of Security Holder On Default In Performance Of Obligation
(1) Where the security holder fails to comply with the provisions of this Chapter, the Court may issue order allowing the disposal of collateral on such appropriate terms and conditions as specified by the Court or restraining the
disposal.
(2) In selling and disposing of collateral, the security holder shall sell and dispose of such collateral in a reasonable manner in consonance with commercial consideration.
(3) After the completion of sale and disposal of collateral, the security giver or any person entitled to be informed or whose security interest has been made known to the security holder prior to the sale and disposal shall
have a right to recover from the security holder any loss caused to him or her by the failure to comply with the provisions of this Chapter.
(4) A claim that a sale and disposal of collateral has not been made in a reasonable manner in consonance with commercial consideration shall not lie merely on the ground that a better price could have been obtained by a sale
and disposal at a different time or in a different method from the time and method selected by the security holder.
(5) A sale and disposal shall be deemed to have been made in a reasonable manner in consonance with commercial consideration if the security holder sells and disposes of the collateral in conformity with prevailing
commercial practices among dealers in that type of the collateral.
(6) If any specific method of sale and disposal of collateral has been approved in any legal proceeding, the disposal made in accordance with such method shall conclusively be deemed as a sale and disposal made in consonance with commercial consideration and in a reasonable manner.
disposal.
(2) In selling and disposing of collateral, the security holder shall sell and dispose of such collateral in a reasonable manner in consonance with commercial consideration.
(3) After the completion of sale and disposal of collateral, the security giver or any person entitled to be informed or whose security interest has been made known to the security holder prior to the sale and disposal shall
have a right to recover from the security holder any loss caused to him or her by the failure to comply with the provisions of this Chapter.
(4) A claim that a sale and disposal of collateral has not been made in a reasonable manner in consonance with commercial consideration shall not lie merely on the ground that a better price could have been obtained by a sale
and disposal at a different time or in a different method from the time and method selected by the security holder.
(5) A sale and disposal shall be deemed to have been made in a reasonable manner in consonance with commercial consideration if the security holder sells and disposes of the collateral in conformity with prevailing
commercial practices among dealers in that type of the collateral.
(6) If any specific method of sale and disposal of collateral has been approved in any legal proceeding, the disposal made in accordance with such method shall conclusively be deemed as a sale and disposal made in consonance with commercial consideration and in a reasonable manner.