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Debt Recovery Tribunal

Best DRT law firm Chandigarh high court
onlineadvocateindia.com > Debt Recovery Tribunal



At onlineadvocateindia law firm, Advocate Vikram singh, wished to provide relevant information to person who are in need of expert advocate on SARFAESI Act and related matters, it is specialized Act, promulgated by parliament of India to expedite recovery of loans given by bank to borrowers. This act is both blessing for bank and a huge problem for borrower, especially for those borrower, who are not willful defaulter and have committed default in repayment of loan taken from Bank due to any genuine reason or some personal or professional difficulty. This Act gave unfettered power to banks to take possession of property of unsuspected borrowers by simply issuing Notices under SARFAESI Act, without approaching the court. These Notice under SARFAESI Act could only be challenged before the Debt Recovery Tribunal and Debt recovery appellate Tribunal, New Delhi. Any state High court for that matter Punjab and Haryana High court at Chandigarh, would intervene only upto limited extent and civil courts can not intervene in SARFAESI Act notices, save except under very limited situations or circumstances. We are Operating Best law firm in Chandigarh for DRT and related matters and we had saved Number of Houses and industries from going in to bank’s hand.  


SARFAESI Act:-   This Act aims at speedy recovery of defaulting loans and to reduce the mounting levels of Non-performing Assets of banks and financial institutions. The provisions of the Act enables the banks to recover loan from borrower without an intervention from Court and by simply issuing notice under SARFAESI Act and to take possession of mortgaged Property. It further enables Bank to sell property of borrower in auction to recover its loan. To safeguard the interest of unsuspected borrower, proper mechanism of Debt Recovery Tribunals (DRT) and Debts Recovery Appellate Tribunals (DRAT) were constituted under the provisions of Act itself. we are one of top lawyers in Chandigarh for DRT cases

Step by step this Act empowered the Bank and Financial Institution and remedy for borrower is as under –

A) Declaration of Account as Non performing Account – if any borrower failed to pay three EMIs of loan taken consecutively then the Secured Creditor, bank or financial Institution, can declare such Account of borrower as Non Performing Account. It is important to mention here that by declaration of account of borrower as Non performing account, the provisions of SARFAESI Act come into operation.

B) That there after, Secured Creditor, bank or financial Institution would issue formal notices to borrower and apprise him of current position of his loan account  and asked him to regularized his account by depositing amount of default committed by him in repayment of loan. If borrower failed to do so then Bank would issue Demand Notice under Section 13 (2) of SARFAESI Act and direct borrower to Pay complete outstanding amount to Bank within 60 days of issuance of this notice. 

C) Thereafter, if the borrower failed to pay this whole amount within 60 days as directed in demand notice, then bank would further issue Notice under section 13 (4) of Act, But prior to this there is an safeguard provided to Borrower, he can gave a legal representation to Bank and tried to explain his position bank, regarding reason of his account becoming NPA and propose some One time settlement of loan or Restructuring of loan as well. The bank cannot issue Possession notice under section 13 (4) of SARFAESI Act, 2002 to took possession of Borrower’s property, unless bank decided this Legal representation. 

D) Thereafter, decision on legal representation of borrower, bank can issue Notice under section 13 (4) of SARFAESI Act, 2002 to take physical possession of borrower’s property. This notice could be challenged before Debt Recovery Tribunal by filling Securitization Application under section 17 of the same act, with accompanied fee.

E) That after issuance of this notice under section 13 (4) of Act, Bank or secured Creditor, would approach, Concerned District Magistrate to seek police help to take possession of Borrower’s mortgaged property, if no stay etc had been granted by concerned Debt Recovery tribunal.

F) Thereafter, with or without taking possession on borrower’s property, secured creditor, bank would issued a notice for sale of Borrower’s Assets, in this notice Description of assets, time of Auction, minimum reserved price for mortgaged property would be mentioned. This notice would be published in two Newspapers, one in English Language and other is Vernacular language.


Effect of this Act is that balance of power is heavily placed in favour of bank but it is not that the Borrower had been left on mercy of bank and bank had been permitted to sold borrower’s property at whatever price. It is expected from the borrower to be more vigilant and not sleep over his right, he can raised the dispute with bank if any, at Concerned Debt Recovery tribunal. For example borrower’s property and bank, which gave loan to borrower is situated in Chandigarh, then Concerned Debt recovery tribunal had the powers to set aside the Possession Notice or sale notice issued by Bank or secured Creditor under SRFAESI Act on application of borrower, under section 17 of SRFAESI Act.


Advocate Vikram singh is one of best advocate for DRT matters and had handled variety of cases before Debt recovery tribunal, Chandigarh and Debt recovery Appellate Tribunal, New Delhi. It is always good to approached Debt recovery Tribunal at early stages and before Bank or Secured Creditor took actual physical possession of mortgaged property because then it would be very difficult to re-possess the property from bank without paying substantial amount of loan at once. we also provide Online legal advice on these matters. If actual physical possession was not taken by bank or Secured creditor then borrower need to approached Debt recovery tribunal at the earliest. Our law firm is more then competent to handle this kind of dispute with bank and our seasoned and experienced advocates had tackle such numerous matters. Best option borrower had is to challenged the Notices issued by the Bank at earliest possible and obtain stay on further proceedings so that bank could not take any adverse step and sold mortgaged property at less price. Other option, which could be explored with time and possession of property in hand, would be One time settlement Scheme, Re-structuring of loan, enhancement of tenure of loan etc, with able assistance of expert legal guidance.  we provide One stop solution to SARFAESI Act related legal problems. 

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