Quick answer: DRT and SARFAESI
When a bank issues a demand notice under Section 13(2) of the SARFAESI Act, 2002, the borrower has 60 days to pay and can raise objections, which the bank must answer. If the bank takes possession or other measures under Section 13(4), the borrower can file a securitisation application before the Debts Recovery Tribunal under Section 17 within 45 days, with a further appeal to DRAT. Law Chambers of Mridul Jindal handles these matters in Ghaziabad, Noida and Delhi. Call +91-8800669834.
Bank Notice, Possession or Auction? Your Deadlines Have Already Started
A demand notice under Section 13(2) of the SARFAESI Act, 2002, a possession notice pasted on your home or factory, or an auction advertisement in the newspaper is a stressful moment for any borrower or guarantor. The SARFAESI process runs on short statutory timelines, and missing one of them can mean losing a remedy entirely.
The Law Chambers of Mridul Jindal represents borrowers, guarantors, MSMEs and homebuyers before the Debts Recovery Tribunals (DRT) and the Debts Recovery Appellate Tribunal (DRAT), and before the High Court in writ jurisdiction where appropriate. We act against banks, NBFCs, housing finance companies and asset reconstruction companies (ARCs).
We act early, read the bank's paperwork carefully, and use every procedural safeguard the law gives you. Often this creates the breathing room needed for a fair one-time settlement.
Stage by Stage: How We Defend You Under SARFAESI
Section 13(2) demand notice (60 days): We draft a detailed objection under Section 13(3A). The secured creditor must consider it and, if it rejects it, communicate reasons within 15 days. A well-built objection that questions the NPA classification, the amount claimed or the security often becomes the foundation of your DRT case.
Possession under Section 13(4) and Section 14: When the bank takes symbolic or physical possession, or obtains an order from the Chief Metropolitan Magistrate or District Magistrate under Section 14, we check every step for compliance with the Security Interest (Enforcement) Rules, 2002.
Securitisation application under Section 17 (45 days): Any measure under Section 13(4) can be challenged before the DRT within 45 days. Grounds include a defective notice, wrong NPA classification, a non-speaking rejection of objections, improper valuation, inadequate auction notice and agricultural land exemptions. We also seek interim stay of possession or auction where the facts justify it.
Redemption under Section 13(8): Before the auction notice is published, the borrower can tender the full dues with costs and redeem the property. We help you plan funding and negotiations around this window.
DRT Recovery Cases and DRAT Appeals
Banks and financial institutions can also file an Original Application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 for recovery of debts of ₹20 lakh and above. We file written statements, counter-claims and set-offs, challenge interest calculations and penal charges, and defend guarantors whose liability is being stretched beyond the guarantee.
If the DRT rules against you, an appeal under Section 18 of the SARFAESI Act lies to the DRAT within 30 days, subject to a pre-deposit of 50% of the debt, which the DRAT may reduce to 25%. For orders under the RDB Act, appeals are governed by Section 20 of that Act. We prepare appeals with a focus on getting the pre-deposit reduced and obtaining interim protection.
Where there is a jurisdictional error or a violation of natural justice that the tribunal cannot correct, a writ petition before the High Court may be possible. See our page on writ petitions.
Settlement, OTS and What to Bring
Litigation is often the tool, and a workable settlement is the goal. We help you negotiate and document one-time settlements (OTS) and restructuring proposals with banks and ARCs, so that pending DRT proceedings are closed properly and the security is released in writing.
For businesses that are owed money rather than owing it, see our money recovery and commercial arbitration services.
Documents to bring: the loan sanction letter and agreements, account statements, the Section 13(2) notice and your reply, any possession or Section 14 notice, the auction notice or newspaper cutting, valuation reports (if shared), and correspondence with the bank about restructuring or settlement.
Consultations are by prior appointment at our Indirapuram chamber or online. Please contact us as soon as you receive a notice. Territorial jurisdiction depends on where the branch or property is located, and we will confirm the correct DRT at the first meeting. This page is general information, not legal advice.
Frequently Asked Questions on DRT & SARFAESI
You have 60 days to pay or respond. Filing a detailed objection under Section 13(3A) is important: the bank must consider it and communicate reasons within 15 days if it rejects it. That reply often becomes the foundation of a later challenge before the DRT.
A securitisation application under Section 17 must be filed before the Debts Recovery Tribunal within 45 days of the measure taken under Section 13(4), such as possession or an auction notice. Delay can be fatal, so act quickly.
Yes. An appeal under Section 18 of the SARFAESI Act lies to the DRAT within 30 days, and the borrower must deposit 50% of the debt claimed or determined, which the DRAT may reduce to 25%.
Under Section 13(8), the borrower can redeem the secured asset by tendering the full dues with costs before publication of the auction notice. Procedural defects in the notice, valuation or auction process can also be challenged before the DRT.
Received a SARFAESI or DRT notice?
SARFAESI timelines are short. Speak to Adv. Mridul Jindal before the deadline to respond or challenge passes.
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