Recovery and banking (SARFAESI and DRT)

Published by Master Legal Work · Sources and use of this guide

Stage by stage

1. Demand notice — 60 days

   The secured creditor issues a notice under s.13(2) SARFAESI asking the borrower to pay within 60 days. The borrower may object, and the bank must reply (s.13(3A)).

   SARFAESI Act, 2002

2. Possession measures

   If payment is not made, the bank may take possession or other measures under s.13(4), with the help of the Magistrate where needed (s.14).

   SARFAESI Act, 2002

3. Borrower's remedy — 45 days

   An aggrieved borrower may apply to the DRT under s.17 within 45 days of the measure.

   United Bank of India v. Satyawati Tondon, (2010) 8 SCC 110, Supreme Court of India, decided 26.07.2010 · Mardia Chemicals Ltd. v. Union of India, AIRONLINE 2004 SC 948, Supreme Court of India, decided 08.04.2004 · SARFAESI Act, 2002

4. Original application

   For debts of the threshold amount and above, banks file an original application before the DRT (s.19 RDB Act).

   Recovery of Debts and Bankruptcy Act, 1993

5. Appeal

   Appeals lie to the Debts Recovery Appellate Tribunal (DRAT), subject to pre-deposit requirements.

   SARFAESI Act, 2002 · Recovery of Debts and Bankruptcy Act, 1993

Frequently asked questions

Official sources

• Recovery of Debts and Bankruptcy Act, 1993 (India Code)
• SARFAESI Act, 2002 (India Code)
• United Bank of India v. Satyawati Tondon, (2010) 8 SCC 110, Supreme Court of India, decided 26.07.2010 (Indian Kanoon)
• Mardia Chemicals Ltd. v. Union of India, AIRONLINE 2004 SC 948, Supreme Court of India, decided 08.04.2004 (Indian Kanoon)

General information only, not legal advice. Statutory references show BNSS / BNS / BSA with the earlier CrPC / IPC / Evidence Act where relevant. Check the precise commencement notification and savings: pending proceedings may remain governed by the earlier procedural law, and the offence date determines the applicable substantive penal law. Judgments are linked as reported; check the full text and any later decisions. Last reviewed 9 October 2026.