Featured · Legal overview
Banking Recovery Proceedings
A focused introduction to the statutory framework for enforcement of security interests under the SARFAESI Act.
This is a general statutory overview, not a report of a particular recent decision or a claim of representation in any matter. The Featured listing overlaps in title and date with an Insights card; this page focuses on the secured-creditor route and does not reproduce that article.
A specific route for secured-creditor enforcement
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) provides a framework for enforcement of security interests by secured creditors, subject to the Act’s scope and requirements. It is one route within the wider field of recovery law; it should not be treated as the process for every bank debt or every borrower.
Sections 13 and 17
Section 13 sets out the statutory framework for enforcement of security interests. Section 17 provides a remedy before the Debt Recovery Tribunal for a person aggrieved by measures taken under Section 13(4), subject to the terms of the Act.
The availability and application of this framework depend on the nature of the security, the creditor, the measure taken and the facts of the matter. This overview does not set out notice deadlines, exemptions, eligibility thresholds or tribunal procedure.
A matter-specific assessment
Banking and recovery disputes can involve different legal routes and documents. A general description of SARFAESI cannot establish that it applies in an individual dispute or determine what remedy may be available. The governing legislation and case-specific facts should be considered together.
