Symbolic Possession Meaning?

Wondering what is symbolic possession? Symbolic possession refers to attaching meaning and value to objects beyond their physical utility. It holds cultural, psychological, and social implications. When we talk about symbolic possession, we’re exploring more than just the tangible aspects of ownership. Read on to delve into it further.

What is Symbolic Possession Under SARFAESI Act?

Symbolic possession is a procedure under the SARFAESI Act that permits financial institutions and banks to acquire physical ownership of an asset that is secured without dismissing the borrower. 

1. Cultural Significance:

   • Objects as Symbols: Certain objects become symbols that represent deeper cultural meanings. For example:

     • Religious Artifacts: A sacred idol or religious text may hold symbolic possession for believers.

     • National Flags: Flags symbolize a nation’s identity, history, and values.

     • Family Heirlooms: Passed down through generations, these objects carry family history and traditions.

2. Psychological Impact:

   • Emotional Attachment: Symbolic possession often involves emotional attachment. An old photograph, a childhood toy, or a handwritten letter can evoke powerful feelings.

   • Sense of Identity: Possessing certain items reinforces our sense of self. They become part of our personal narrative.

   • Comfort and Security: Familiar objects provide comfort and a sense of security, especially during challenging times.

3. Social Implications:

   • Status and Prestige: Owning specific items can signal social status. Luxury brands, designer clothing, or expensive cars serve as symbols of success.

   • Group Affiliation: Possession of group-specific symbols (team jerseys, fraternity pins) connects us to communities.

   • Gifts and Relationships: Gifts hold symbolic value, representing love, friendship, or gratitude.

4. Examples of Symbolic Possession:

   • Wedding Rings: Beyond their material value, wedding rings symbolize commitment, love, and partnership.

   • Artwork: Paintings, sculptures, or other art forms hold aesthetic and cultural significance.

   • Trophies and Awards: These represent achievements and recognition.

Moreover, the SARFAESI symbolic meaning is that the borrower or defaulter continues to reside in the property. I hope you found this answer helpful.

The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016, defines "symbolic possession." Now, what do you mean by symbolic possession? In simple terms, symbolic possession denotes the absence of a bank or other financial institution's custody of the property's key. 

In other words, the meaning of symbolic possession is that the borrower or defaulter is still residing on the property. However, under the SARFAESI Act, a secured creditor, such as a bank, can actually seize the asset, or collateral, in the event of a payment default. 

It is not always possible for the bank to take physical possession for a variety of reasons. The secured creditor issues a notice of symbolic possession and then conducts the auction based on that notice.

I hope this helps you to understand what symbolic possession means.

Additionally, Banks favours the symbolic possession because it has a demonstrative effect.

When the main entrance of a building or residence is marked with a notice and photographs taken in front of four or five bankers documenting the symbolic possession, the secured debtor is typically under pressure to present the outstanding balance or request a settlement with the bankers.

Hope this clarifies what do you mean by symbolic possession.

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Sometimes people fail to pay back the loan they have taken from the bank as a result of which, they have to give up their property and the bank takes charge of it. I have seen a bank taking charge of the house where one of my neighbours used to live for more than a decade. The bank has gained legal right over that property. Sometimes the owner refuses to vacate the house but in that case the bank can take physical action against him and transfer the property rights to a new buyer. This is the simple symbolic possession of property meaning. 

Symbolic possession means that the bank might have rights over the property but it does not have the key to the property. Banks get the possession notice under section 13 (4) and If there happens to be no further proceedings, the bank has the right to take physical possession of the property under Section 14 of the Act through District Magistrate or Chief Metropolitan Magistrate. 

The bank needs to gain physical rights over the property and then only can they transfer the rights to the buyer. Nowadays, banks do transfer or complete transactions without formal physical possession but the buyer must look after such crucial matters. 

I hope now you have understood symbolic possession of property meaning

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