SARFAESI Act & NPA Legal Services
Objective legal consulting and litigation advisory rooted in 35+ years of institutional banking operations and active advocate practice. We advise on accounts with exposure of ₹5 Crore and above.
1. Legal Defense & Strategy for NPA Borrowers (₹5 Cr+)
When a corporate borrower receives a Section 13(2) notice, the immediate 60-day window is critical for preserving rights and preventing precipitate action under Section 13(4) or Section 14. We provide statutory procedural analysis and representation.
Section 13(2) Notice Scrutiny & 13(3A) Objections
Audit of demand notice for statutory jurisdictional defects: correct Authorised Officer delegation, calculation of contractual vs. penal interest, verification of 90-day NPA classification date under RBI IRAC norms, and drafting comprehensive objection representations under Section 13(3A) compelling a reasoned reply as mandated by the Supreme Court in Mardia Chemicals (2004).
Section 17 DRT Securitisation Applications (S.A.)
Drafting and filing Securitisation Applications under Section 17 of the SARFAESI Act before Debt Recovery Tribunals (DRT-1, DRT-2, DRT-3 Chandigarh and across India) within the mandatory 45-day statutory limitation period. Seeking interim injunctions against possession notices and auction sales on verified procedural grounds.
Section 14 DM / CMM Possession Defense
Scrutinizing Section 14 applications filed by secured creditors before District Magistrates (DM) and Chief Metropolitan Magistrates (CMM). Auditing compliance with the mandatory 9-point affidavit requirements under Section 14(1-A) and representing borrower interests before appellate forums.
One-Time Settlement (OTS) Structuring
Formulating realistic, bank-compliant One-Time Settlement (OTS) proposals aligned with the RBI Circular on Compromise Settlements (June 2023) and bank board-approved recovery policies. Evaluating security realisable values to structure defensible waiver hierarchies for penal interest and unapplied contractual interest.
2. Recovery Advisory & Procedural Audit for Banks & NBFCs
High-value recovery litigations frequently fail or get stayed in DRT due to technical flaws in the initial SARFAESI documentation. Drawing on 35+ years inside SBI SAM Branch, we assist institutional lenders in ensuring bulletproof statutory compliance.
Pre-Enforcement Statutory Defect Audit
Auditing loan recall, NPA intimation, and Section 13(2) notices before issuance to eliminate procedural vulnerabilities that borrowers typically exploit in DRT. Ensuring proper calculation of dues, service proofs, and statutory notice wording.
Section 14 Affidavit & Police Assistance Filings
Preparation of rigorous Section 14 applications with all 9 statutory clauses meticulously substantiated to avoid delays before District Magistrates, ensuring lawful and prompt physical possession of secured assets.
Auction Process Compliance (Rule 8 & 9)
Ensuring strict adherence to Security Interest (Enforcement) Rules 2002 — securing valuations from two independent IBBI-approved valuers, setting realistic reserve prices, drafting 30-day / 15-day public auction notices, and managing sale certificate issuance.
NPA Portfolio Resolution Strategy
Assisting banks, asset reconstruction companies (ARCs), and NBFCs in triaging complex stressed loan portfolios, evaluating feasibility between SARFAESI enforcement, IBC Section 7 proceedings, and bilateral compromise settlements.
3. Legal Due Diligence for SARFAESI Auction Purchasers
SARFAESI properties are sold on "as is where is, whatever there is" basis. A successful bid does not ensure immediate possession if the title is clouded or if the borrower has obtained an interim order. We conduct thorough pre-bid and post-sale legal verification.
Pre-Auction Legal & Title Verification
Examining chain of title documents, prior mortgages, municipal tax and electricity liabilities, revenue record entries (Jamabandi / Fard), and determining if the mortgage created with the bank is an equitable, registered, or defective charge.
DRT & High Court Litigation Search
Searching tribunal records to verify whether any Securitisation Application (S.A.) under Section 17, caveat, or writ petition is pending before the DRT or High Court challenging the auction, and assessing the risk of sale cancellation.
Physical Possession Facilitation
Advising auction purchasers when banks have only obtained "symbolic possession" under Section 13(4), and navigating the Section 14 DM proceedings necessary to deliver vacant physical possession of the purchased asset.
Sale Certificate & Sub-Registrar Registration
Guiding auction buyers through the legal requirements for registration of the SARFAESI Sale Certificate under the Registration Act 1908, stamp duty computations, and mutation entries in revenue and municipal records.
High-Value Accounts Consultation Criteria
Due to the specialized nature of our banking advisory and DRT litigation practice, we accept matters involving total loan exposure of ₹5 Crore and above. Consultations are scheduled strictly on prior request.
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