How Can a DRT Lawyer in Chandigarh Help With Loan Recovery Cases?
One bank recovery notice can take a borrower’ s situation from bad to worse overnight. Maybe your commercial loan is overdue and has now been pushed into formal recovery. Perhaps you have a secured loan and are suddenly unsure if your home will be auctioned or repossessed. As a borrower, guarantor or business in Chandigarh, it’ s vital to know where you stand legally so you can take appropriate action.
At BK Singh Associates our DRT Lawyers in Chandigarh can guide you with respect to issues pertaining to bank recovery, secured assets, SARFAESI actions, DRT hearings and all relevant negotiations. Specialized to deal with bank recovery matters, the Debt Recovery Tribunal deals with the recovery of claims filed by banks and financial institutions under Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
BK Singh Advocate can assist borrowers, guarantors and MSMEs as well as businesses with DRT matters and disputes with banks. The initial step involves a thorough analysis of your loan documents, account information, guarantee, security and any correspondence received from the bank.
Why Does Loan Recovery Need Timely Legal Attention in Chandigarh
Loan borrowers in Chandigarh include salary persons to professionals, businessmen,property dealers to secured loans borrowers and unsecured loans borrowers. One can get into financial troubles overnight when the payments are delayed and the bank starts recovery procedures from court.
BK Singh Advocate helps those persons who are either already entangled in DRT recovery proceedings or SARFAESI action or faced with eviction/ auction notice or are still in a position to settle the matter through commercial discussion.
BK Singh Advocate Client Base is not restricted to presence in Chandigarh only. Jurisdiction of DRT forum is decided depending upon the statute and facts of the loan. We at DRT Lawyer accept cases from all over India including Chandigarh.
Quick Facts About DRT Loan Recovery
- Law and jurisprudence covering DRT proceedings for recovery of debts due to banks and Financial Institutions is Recovery of Debts and Bankruptcy Act, 1993.
- SARFAESI proceedings run parallel to the normal DRT recovery proceedings.
- Section 17 (Remedy before DRT) Remedies available to borrowers aggrieved by actions taken by secured creditor u/s 13(4).
- Appeals against orders of DRT are covered under Section 20 of Recovery of Debts and Bankruptcy Act.
- Normally an appeal will lie before Appellate Tribunal within 30 days from the date of receipt of order passed by DRT.
- Under Section 21 statutory pre deposit required to be submitted by borrowers filing appeals is 50% which may be reduced by Tribunal to not below 25% for reasons to be recorded.
- Directions have been issued to all RBI regulated lenders and their agents for fair practices during recovery, without resorting to coercion or harassment.
What Is a Loan Recovery Case in DRT?
DRT loan recovery cases primarily involve a bank or financial institution’ rights to recover the debt. The matter involves loan agreements, guarantees, account statements, securities documents, certified recovery of debts or enforcement of secured assets recovery.
BK Singh Advocate analyses the particular case to determine the appropriate solution rather than assuming every bank notice has a same solution. The solution may vary depending on whether it is regarding DRT application, SARFAESI Enforcement, Possession/Auction, Guarantee Liability or Order Pending.
Which Act governs Loan Recovery?
The Recovery of Debts and Bankruptcy Act, 1993 also known as RDDBFI Act, covers all aspects of pending recovery proceedings before DRTs. Appeal to Appellate Tribunal is covered under Section 20 and deposit of prescribed amount in certain appeals is covered under Section 21.
In case of secured loans SARFAESI Act also becomes applicable. SARFAESI means Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Enforcement of security interest is covered under Section 13 and remedy by way of DRT proceeding against action covered under Section 13 is covered under Section 17. Supreme Court has ruled that DRT remedy is available for people affected by certain actions of SARFAESI.
BK Singh Advocate can guide you whether talk of settlement or OTS is commercially viable for you. Settlement is not your legal right and no lawyer can guarantee you that bank will accept your proposal.
Which Documents Should a Borrower Keep Ready
Documents which should be safely kept by the borrower include the loan agreement, sanction letter, amortization schedule, account statements, security and guarantee related documents and correspondence with the bank.
Copies of demand notices, possession notices, auction notices, DRT petitions, interim orders and compromise proposals may also become useful. BK Singh Advocate usually begins a consultation by identifying the document that gave rise to the present legal problem and verifying the dates.
When Should You Consult a DRT Lawyer
Legal help can be thought of when you receive a legal notice for recovery, SARFAESI notice, possession notice/ auction notice letter. It would also be logical to think about legal help when a DRT case has been initiated against you or when you have received an adverse order.
You should not wait till the date of auction is very close. Upon seeing the papers received by you, your DRT Lawyer in Chandigarh can advise you about the appropriate legal course of action, if any limitation issues are there, what documents & what remedies are available to you after considering the real facts.
How Can DRT Lawyer Help in Chandigarh
DRT Lawyer Provides assistance in DRT, DRAT, SARFAESI and loan recovery cases, possession, auction cases and other bank litigation matters. DRT Lawyer listing on this website also provide information on DRT Lawyers if you are facing Loan Recovery cases as loan borrower.
BK Singh Advocate handles matters pertaining to scrutiny based on documents and presentation in legal forum. Matters will be handled by discussing the settlement or any other legal option possible.
Recovery harassment of borrowers in Chandigarh has nothing to do with whether the bank can recover the money back or not. Rather it is a question of what has been done, under which law has been done and what legal recourse is available at that stage.
Frequently Asked Questions
Q1. Can a DRT Lawyer in Chandigarh defend a bank recovery case against me?
Ans. Yes. Depending on jurisdiction and facts DRT lawyers can represent borrowers, guarantors and other impacted parties in appropriate proceedings. BK Singh Advocate will review loan agreements and proceedings (if any) before advising on what reliefs are available to you.
Q2. Can guarantors also be impleaded in DRT proceedings?
Ans. Yes. Guarantor’ liability would depend on the terms of guarantee and applicable law. Based on the facts and documents specific to the loan taken.
Q3. Can someone who has borrowed money oppose SARFAESI action through DRT?
Ans. Yes. Persons aggrieved by any measures taken u/ s 13(4) of SARFAESI Act, 2002 have recourse against the measures under Section 17 of SARFAESI Act.
Q4. Can borrower stop bank auction of property via DRT?
Ans. Yes. Interim relief can be sought depending on facts. Interim relief is not granted automatically on filing a case before Tribunal. Tribunal will allow the parties to be heard, go through documents and evaluate law & facts before entertaining any prayer for interim relief.
Q5. Can borrower negotiate loan settlement during bank recovery process?
Ans. Yes. Settlement is always an option and terms can be negotiated on commercial basis with the lender. Lenders willingness would depend on facts and circumstances. BK Singh Advocate can review terms lenders send for settlement before you take any decision to accept.
Q6. What should I do after receiving SARFAESI notice from bank?
Ans. It would depend what type of notice is received and what stage the lender has started enforcing its remedies. Borrower should preserve the notice received, mark the dates upon which bank can take action against him and consult a lawyer at the earliest.
Q7. Can recovery agents enter my house forcefully?
Ans. RBI has issued Directions wherein it restrictded entities from allowing their recovery agents to indulge in acts / conduct that can be viewed as coercive / intimidatory while carrying out recovery of debts. RBI has also issued slew of Directions on fair practices like respecting privacy of borrowers.
Q8. What is the time limit to file appeal against order of DRT?
Ans. Section 20 Recovery of Debts and Bankruptcy Act allows a period of 30 days from date of receipt of the order of the DRT to file an appeal before the Appellate Tribunal. This is subject to the various statutory provisions speak specifically about condonation of delay in filing appeals.
Q9. Do I have to deposit 50% of the amount claimed as appeal fee in DRAT?
Ans. Section 21 provides for deposit of 50% in specified appeals to be filed before Appellate Tribunal. Appellate Tribunal has powers to reduce the amount of deposit for reasons to be recorded on the record to even 25% of the debt claimed.
Q10. Why choose BK Singh Advocate to help me with my loan recovery problem in Chandigarh?
Ans. BK Singh Advocate can assist you with any matters which fall within the jurisdiction of DRT banking disputes after reviewing the relevant documents, stage of recovery process already started and evaluating the possible legal remedies. Meeting Advocate BK Singh will help you understand whether your matter needs initiation of DRT proceedings, oppose SARFAESI enforcement, file an appeal against orders of DRT / DRAT, negotiation of settlement or any other remedy. You can also hire BK Singh Advocate after exploring other DRT lawyers in Chandigarh. Please explore this website to understand our fee structure.
Conclusion
Don’t let bank settlement threats or loan recovery notices get resolved by simply ignoring them and rashly promising to make a ‘delayed payment settlement’. Whether you are a borrower, guarantor or a business owner involved in a loan recovery dispute, take charge of the situation by educating yourself about where you stand in the legal process, preserve all your documents and finally talk to a lawyer to understand which remedy makes sense for you.
BK Singh Advocate and DRT Lawyer work with borrowers, guarantors and businesses on DRT, DRAT, SARFAESI and loan recovery issues across India, including those based in Chandigarh. By knowing and getting involved early, we can help you understand your legal options before the matter goes to a more advanced level in the recovery cycle.
Read more about DRT Lawyer in Chandigarh for handling loan recovery related issues.
