Section 13
Assignor to be trustee of assignee.
The Factoring Regulation Act, 2011
About this Act
An Act to provide for and regulate assignment of receivables by making provision for registration there for and rights and obligations of parties to contract for assignment of receivables and for matters connected therewith or incidental thereto.
Notwithstanding anything to the contrary contained in any
other law for the time being in force, where a debtor makes any payment to an assignor which represents
payment due on an assigned receivable, such payment shall be deemed to be for the benefit of the
assignee, and the assignor shall be deemed to have received the amount of such payment as a trustee of
the assignee and the assignor shall make payment of such amount to the assignee.