Defending Your Rights at the Debt Recovery Tribunal

Receiving a notice from the Debt Recovery Tribunal (DRT) feels like the walls are closing in, but the law provides specific tools to push back. The DRT is not just a place for banks to recover dues; it is a forum where your defense matters. Under the SARFAESI Act, banks must follow a rigid procedure. When they fail—whether by issuing an improper notice, miscalculating the NPA date, or skipping mandatory valuation steps—the entire recovery process can be challenged.

Why Your Initial Response Matters

Many clients come to us after they have already inadvertently admitted liability through poorly drafted replies. A SARFAESI 13(2) notice is not just a letter; it is a statutory trigger. If you do not file a formal Section 13(3A) objection, you lose your right to contest the bank’s claims later. We meticulously audit your account against RBI IRAC (Income Recognition and Asset Classification) norms to see if the bank’s NPA tagging is even valid.

Our Strategic Approach

• Stopping Auctions: If you are facing an imminent property auction, we file Section 17 applications in the DRT to seek an immediate Stay Order.
• Procedural Defense: We look for lapses in notice affixation, valuation errors, or non-compliance with the Securitisation Act.
• Negotiation over Litigation: Sometimes, a One-Time Settlement (OTS) is the smartest exit. We handle the intense negotiations with Zonal Managers to secure debt closure at a discount, ensuring you get a clean No Dues Certificate without hidden liabilities.
• Guarantor Protection: If you are a director or personal guarantor, your assets are in the crosshairs. We challenge the invocation of personal guarantees, especially when the principal borrower's case is still in dispute.

Don't let the 45-day appeal window or the 60-day SARFAESI clock run out. Time is the most expensive commodity in a DRT case.