Banking & Finance

Overview

Our Banking & Finance practice provides end-to-end legal services to public and private sector banks, NBFCs, asset reconstruction companies, fintech and digital lending platforms, and borrowers across Delhi NCR and North India. We advise on the full regulatory framework governing lending and recovery, including the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, RBI Master Directions, the SARFAESI Act, 2002, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the Insolvency and Bankruptcy Code, 2016. Our work spans NPA resolution and loan recovery, SARFAESI possession and Section 14 District Magistrate applications, debt restructuring and one-time settlements, wilful defaulter and banking fraud proceedings, and digital lending compliance. We represent lenders and borrowers before the Debt Recovery Tribunals and DRAT at Delhi, the NCLT, and the High Courts across the region, combining transactional documentation with aggressive enforcement and recovery strategy.

1. 1

   Classify the account as NPA

   Identify the account as a Non-Performing Asset per RBI Income Recognition and Asset Classification (IRAC) norms — typically 90 days past due for term loans.

2. 2

   Issue Section 13(2) notice

   Serve a 60-day demand notice under Section 13(2) of the SARFAESI Act, 2002 calling upon the borrower to repay the entire outstanding within 60 days, failing which the secured creditor will exercise rights under Section 13(4).

3. 3

   Consider the borrower's representation

   If the borrower files a representation or objection under Section 13(3A), the secured creditor must respond within 15 days. The notice period continues to run.

4. 4

   Take symbolic possession under Section 13(4)

   After 60 days, take symbolic possession of the secured asset. Issue the possession notice as prescribed under Rule 8 of the Security Interest (Enforcement) Rules, 2002 and publish in two newspapers.

5. 5

   Obtain physical possession via the District Magistrate

   Where the borrower does not vacate, apply to the District Magistrate / Chief Metropolitan Magistrate under Section 14 for assistance in taking physical possession of the secured asset.

6. 6

   Conduct the sale

   Issue a sale notice (30 days' notice in two newspapers including one vernacular), conduct an e-auction or public auction per Rule 8/9, and apply the sale proceeds to the secured debt in the priority order under Section 13(7).

7. 7

   Pursue residual balance

   If the sale proceeds do not satisfy the entire dues, file a claim before the Debt Recovery Tribunal (DRT) under the RDDB Act, 1993 for the unsatisfied balance, supported by the SARFAESI sale account.

This is a general guide. For advice on your specific matter, speak to our Banking & Finance team.