DRT Consultation for Bank Recovery and Loan Disputes
When you receive a bank recovery notice everything can seem confusing for a borrower. Maybe yesterday you had an EMI delay or were struggling with your business loan. Today you are receiving a recovery notice / possession notice / recovery proceeding / auction worry. Most people don't know what the bank recovery notice means and what to do.
Once you receive a recovery notice against you it is good to take a DRT Legal Consultation. So that you are aware of the legal position you are in. Before the due date is passed we can review your documents. Be it Loan Agreement, Account Statement, Security Document, Guarantee, Communication from Bank, SARFAESI Notice, Possession Notice, Auction Document or any ongoing DRT Proceeding.
BK Singh Advocate practices in DRT / DRAT / SARFAESI / Bank Recovery of secured asset and loan default disputes for Borrowers, Guarantors and MSME's / Business. Our Practice is based on reviewing documents. Representing clients in Tribunals, challenging actions under SARFAESI Act, resolving bank recovery disputes and negotiating settlements.
Please keep in mind that just because you consult with us does not mean we will be able to stay a recovery action. Similarly if a borrower challenges the bank in a legal forum does not mean the loan will be wiped out. Every case will be different based on loan documents, security provided, stage of recovery and lenders conduct.
Some borrowers only take legal advice once a possession notice or auction notice is served. At which point we may need to urgently act before a court or tribunal. BK Singh Advocate will be able to advise you on what forum to approach and what documents you will need to have reviewed. As well as limitation period and remedies that may be available.
Why Should You Take A DRT Legal Consultation?
If you are a borrower who has been served a recovery action. You will want to know where your case stands legally. The bank may have filed for recovery under the Recovery of Debts and Bankruptcy Act, 1993. In addition to initiating measures under the SARFAESI Act 2002. There are different forums that handle each statute.
Your case may be at the stage of serving a demand notice under section 13(2) of SARFAESI. Or it could be at the stage of initiating various measures under section 13(4). Or perhaps your secured asset has been taken possession of or an auction is being conducted. Section 17 provides you with a remedy to challenge any measure initiated u/s 13(4) of SARFAESI before the Debt Recovery Tribunal. Depending on what action was taken and the facts of your case.
Consulting us at the right time can allow you to figure out which DRT you need to file your case in. Or which other forum may be applicable to your situation.
Business owners should also note that the secured asset may be used for there office, factory, warehouse or shop. Having your debt in a legal dispute may effect your business as well.
BK Singh Advocate will look into your case based on the documents we have available to review. We do not assume how your case will play out. This will be beneficial if the borrower believes the bank is wrong on the amount owed. The borrower did not receive a notice or notice was not sent correctly. Payments were made and not adjusted towards the loan. The borrower believes the security was not proper or has any other reason to challenge the recovery action.
Quick Facts
The Debt Recovery Tribunal is a court that hears matters regarding debt recovery. Under the Recovery of Debts and Bankruptcy Act 1993.
Under the SARFAESI Act the secured creditor can initiate measures against a defaulting borrower.
Borrower can file a remedy with the DRT to challenge certain measures taken u/s 13(4) of the SARFAESI Act.
The DRT and SARFAESI proceedings can happen simultaneously.
You can appeal the order passed by DRT before the Debt Recovery Appellate Tribunal. Subject to the statute.
Loan documents will be very helpful when representing a borrower. Sanction letter, account statement, notice served, security provided, payment made etc.
There are many ways to resolve your debt with a bank. It will depend on what facts you have and the law.
DRT Legal Consultation For Borrowers
If you want to take legal advice on your debt. A DRT legal consultation can help you understand your case. We can advise you on what your options are before or after a legal dispute has occurred.
A borrower may want to know if they received a demand notice from the bank. If the bank has initiated possession proceedings. If an auction notice has been served. Or if there is already a legal dispute filed by the bank against the borrower in the DRT.
Are you a borrower or guarantor on a loan. What is your dispute with the bank? Is it regarding the amount owed, security provided, procedure followed by the bank, payment, classification of loan or something else.
We will also let you know what your options are legally and commercially. You may want to file a case against a bank for a recovery action taken. You may also want to discuss a settlement with your bank. Both options can exist together.
BK Singh can review your documents and let you know what your position is legally. This can be helpful if you have never dealt with a tribunal. DRT cases are usually very document/statute heavy compared to other types of consumer cases.
When To Consult With A DRT Lawyer?
A borrower should consult a lawyer as soon as they think their case is in trouble. There are many reasons to consult with us regarding your debt with the bank.
If you have received a SARFAESI demand notice from your bank. You should consider consulting with a lawyer.
You may also want to consult with us if you have received a possession notice, proposed auction notice, recovery certificate, DRT or DRAT notice.
If you believe the bank owes you money or money you paid has not been credited towards your loan you should speak with us as well.
If you are a guarantor you should also be aware of what action is being taken by your bank. Depending on the documents provided by the bank you may want to speak with us.
MSME's should also speak with us if there assets have been attached to a loan. If the bank is taking action against your company we can help.
If an auction is happening or hearing date is near. You will want to take legal advice as soon as possible. Based on the documents and stage of your case we can advise you what steps need to be taken.
Can You File A Case In The DRT If SARFAESI Action Has Been Taken?
Yes you can file a case in the DRT if the bank has taken measures against you under SARFAESI. You would typically file a case under section 17 of SARFAESI if your bank has initiated measures u/s 13(4). Again this will depend on what measures were taken against you and what you want to challenge.
You may challenge if the measures were taken correctly. The bank followed proper procedure. You may have a dispute regarding the amount owed. Or there may be an issue with the security provided. Any other legal remedy available to you.
The DRT will not automatically grant you relief. After hearing your case and the documents filed we can let you know if there is merit to your case.
Consulting with BK Singh Advocate will allow us to look at what measures your bank took. And what documents you have to back up your claim.
One thing to remember is that if you are disputing your loan in a legitimate manner. The DRT is not going to help you avoid paying your debts.
What Are DRT And DRAT?
The DRT is a tribunal that hears cases regarding debt recovery. You can appeal an order from the DRT before the DRAT.
If you lose your case in the DRT you will not be able to appeal in a civil court. Depending on what statute your case falls under will determine if you can appeal.
If you wish to appeal an order from the DRT you must follow section 18 of the SARFAESI Act.
Since there is a time limit and money that needs to be deposited before an appeal can be heard. You should speak with us as soon as you receive an order from the DRT.
BK Singh Advocate has been handling DRT and DRAT cases for borrowers across India. If you want to learn more about our practice areas please visit our practice area page. We handle cases in DRT across India and DRAT.
DRT Lawyer For Borrowers
We offer Borrowers, Guarantors, MSME's and other parties legal services when facing a bank recovery action. We specialize in representing clients before the Debt Recovery Tribunal ("DRT") and Debt Recovery Appellate Tribunal ("DRAT").
Our firm handles cases before the DRT. SARFAESI Act related cases, Possession/Auction, Loan Defaults, Guarantor cases and many more. We can also help you discuss your options for a settlement.
If you are looking for a DRT Lawyer. Our website can help you get started with a consultation. We will look at your documents and let you know if we can assist you. We can tell you where you stand legally with your bank. If we need to represent you in a legal forum or help you negotiate a settlement.
Our website has more information on DRT cases. We have a service page that explains what happens when a bank files a section 17 case with the DRT. What you can expect and what documents will be required.
FAQ
1. What is a DRT Legal Consultation?
If you want to take legal advice regarding your bank debt. A DRT legal consultation will allow us to look at your documents. Typically loan agreement, demand notice, account statement, security document and what stage your case is at. We can then tell you what your options are.
2. Can I go to the DRT to stop my bank from recovering my loan?
The DRT can help you in certain situations. If your bank has initiated measures against you u/s 13(4) of the SARFAESI Act. You may be able to file a case under section 17 of SARFAESI.
3. Will the DRT stop my bank from taking possession of my assets?
If the law allows for it and your case has merit. The DRT can grant you relief. Just because you file a case with the DRT does not mean you will receive relief.
4. What documents do I need to bring to my DRT Consultation?
Loan documents, sanction letter, account statement, payment history, guarantee, security documents, SARFAESI notices, possession/auction documents and any other correspondence with the bank.
5. Can I speak with a lawyer about my guarantor case?
If you are a guarantor and your bank has initiated recovery action against you. Yes you can take legal advice. You may want to speak with us if you are unsure what your liability is on a loan.
6. Can I settle my loan if I have filed a case in the DRT?
You can always settle your loan with the bank. Even if you have a case pending with the DRT. Make sure you know what your rights are before paying a bank. Or waiving your right to sue.
7. I received a possession notice from my bank what do I do?
If you have received a possession notice you should look into what your options are. Speak with a lawyer about what your remedy may be under the SARFAESI Act. You will want to act quickly when you receive a notice under SARFAESI.
8. Is the DRT considered a civil court?
No the DRT is not a civil court. It is a tribunal created by the government to hear debt recovery cases.
9. Can I appeal an order from the DRT?
Yes you can appeal an order from the DRT. Depending on the law your case falls under. You will need to file an appeal with the DRAT. If your case is under the SARFAESI Act you would follow section 18.
10. Can BK Singh Advocate represent me in my state?
Yes we represent borrowers in DRT/DRAT cases across India. If you are unsure please reach out to us and we can let you know if we can represent you.
Conclusion
If your bank has initiated recovery action against you you should learn about your rights. What notice you received, what the bank has done and what your options are.
Speaking with a lawyer can help you understand your case. Maybe you have a legal dispute with your bank or maybe you just need to pay your debt.
If you need legal assistance with your bank debt contact BK Singh Advocate. We represent borrowers across Delhi NCR (Delhi, Noida, Ghaziabad, Gurugram, Faridabad, Meerut & Hapur) and other areas of India.
Every case is different. So when you speak with us we will want to see your documents and notices. Not just tell you what we think you should do based on another clients case.
