Overview
When a loan account turns into a non-performing asset, banks and financial companies can enforce their security under the SARFAESI Act, 2002 without going to court, or file an Original Application before the Debts Recovery Tribunal under the RDB Act, 1993.
The law gives borrowers and guarantors defined opportunities to respond: a representation against the demand notice, an application to the DRT against measures taken, and an appeal to the DRAT. Each step has a short deadline.
Matters handled
- Replies and representations under Section 13(3A)
- Securitisation applications under Section 17
- Stay of possession and auction
- Written statements in Original Applications
- Challenges to valuation and auction process
- One-time settlement negotiations
- Co-operative bank recovery writs
- Appeals before the DRAT
How a matter proceeds
Frequently asked questions
How long do I have after a Section 13(2) notice?
The notice gives 60 days to pay. Within that period you can send a representation under Section 13(3A), which the lender must answer within 15 days.
When can I approach the DRT?
Any person aggrieved by measures under Section 13(4), such as possession, can file a securitisation application under Section 17 within 45 days.
Can the auction be stopped?
The DRT can grant interim relief in appropriate cases, often on conditions such as a deposit. Acting early improves the chances.
Discuss your matter
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