Sarfaesi Act Notice all About

Sarfaesi Act Notice all About

A SARFAESI Act Notice refers to the formal demand notice issued by a secured creditor (such as a bank or financial institution) to a borrower under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

The SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) in India empowers banks and financial institutions to recover dues from defaulting borrowers classified as Non-Performing Assets (NPAs) without court intervention. A SARFAESI notice is a critical step in this process.

A SARFAESI notice is a written demand issued by a secured creditor (bank or financial institution) under Section 13(2) of the SARFAESI Act to a borrower who has defaulted on a secured loan. The notice demands repayment of the outstanding dues within 60 days and specifies the secured assets (collateral) that may be enforced if the borrower fails to comply.

The SARFAESI Act empowers banks and financial institutions to recover dues efficiently by enforcing security interests over collateral, streamlining the process of asset recovery in case of loan defaults.

A SARFAESI Act Notice refers to a legal notice issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (commonly known as the SARFAESI Act). This Act empowers banks and financial institutions in India to recover their non-performing assets (NPAs) without court intervention, by enforcing the security interest (e.g., mortgaged property).

A SARFAESI Act notice is a formal communication issued by banks and financial institutions in India to borrowers who have defaulted on their secured loans. The SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002, empowers these institutions to recover Non-Performing Assets (NPAs) without the intervention of a court, except for agricultural land.

Section 13(2) Demand Notice: This is the first notice issued when a borrower's account is classified as an NPA (due to non-repayment for 90 days). It requires the borrower to discharge their liabilities in full within 60 days from the date of receipt.

The borrower has the right to make a representation or raise objections to this notice within the 60-day period.

The secured creditor is then obligated to consider such representation/objection and provide a reasoned reply within 15 days if the objection is not accepted.

Section 13(4) Possession Notice: If the borrower fails to repay the debt within the 60-day period mentioned in the Section 13(2) notice, the bank can proceed to take possession of the secured assets. A possession notice is then issued, informing the borrower that the bank has taken symbolic or physical possession of the property. This notice is also usually affixed on the outer door of the property and published in two leading newspapers (one English and one vernacular).

Rule 8(6) / Rule 9(1) Sale Notice: After taking possession, if the borrower still hasn't settled the dues, the bank proceeds to sell the secured asset. A sale notice is issued to the borrower, providing at least 30 days notice before the sale (e.g., through public auction, tender, or private treaty). In case of a subsequent sale, this period might be curtailed to 15 days.

Best DRT and Sarfaesi Lawyer in India Ajay Gautam Advocate

Ajay Gautam is an advocate based in Jabalpur, Madhya Pradesh, with over years of legal experience. His practice spans major forums—Debt Recovery Tribunals (DRTs), Debt Recovery Appellate Tribunals (DRATs), the Delhi High Court, and even the Supreme Court of India. This pan-India reach ensures clients receive high-caliber representation across jurisdictions.

Gautam is recognized as a specialist in debt recovery under the SARFAESI Act and DRT proceedings. For creditors, he expertly drafts Section 13(2) and 13(4) notices, aids in asset possession and auctions, and moves Original Applications (OAs) under the RDDBFI Act. On behalf of borrowers, he challenges procedural lapses—such as non-compliance with RBI mandates, valuation defects, and auction irregularities—often securing stays or compensation through Securitisation Applications (SAs).

His reputation is built on strategic case assessment and personalized legal strategies. Available information highlights a meticulous, client-focused style: he reviews loan documents and recovery notifications for flaws, conducts thorough case preparation and documentation, and actively negotiates settlements like one-time settlement (OTS). This approach ensures transparent communication and ethical advocacy, leading to consistent client satisfaction.

Though his forte is financial recovery law, Gautam’s courtroom expertise extends notably into areas like civil, criminal, family, corporate governance, and service matters. As a “legal influencer,” he contributes to seminars, conferences, and legal publications—educating peers and clients on complex banking laws and landmark jurisprudence.

Praised as “one of India’s leading experts in DRT and SARFAESI law”, Gautam’s track record includes landmark cases favoring both lenders and borrowers. He actively integrates pivotal Supreme Court and High Court rulings to fortify client defenses. His commitment to ethical practice, result-oriented methods, and procedural rigor makes him a coveted advocate in complex debt recovery battles.

Ajay Gautam Advocate emerges as a leading authority in India’s DRT and SARFAESI legal landscape. His blend of nationwide litigation reach, deep statutory expertise, strategic litigation philosophy, diversified legal practice, and a reputation for integrity collectively make him an ideal choice for banks, financial institutions, borrowers, or guarantors navigating intricate debt recovery disputes.

Advocate Ajay Gautam is widely recognized as one of the best lawyers in India specializing in Debt Recovery Tribunal (DRT) and SARFAESI Act matters. Based in Jabalpur, Madhya Pradesh, he has built a distinguished reputation for his expertise in debt recovery, non-performing asset (NPA) advisement, and complex financial disputes under the SARFAESI Act and DRT proceedings.

Ajay Gautam’s legal career spans over a decade, during which he has represented a diverse clientele, including banks, financial institutions, corporate clients, and individual borrowers. His practice covers a broad range of financial litigation, from debt recovery disputes and loan defaults to enforcement of security interests. He is also known for defending borrowers against unjust recovery actions by banks and financial institutions, demonstrating a balanced approach to both creditor and debtor interests.

His in-depth understanding of banking law and the intricacies of the SARFAESI Act, 2002, as well as the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, enables him to provide comprehensive legal solutions. Ajay Gautam is particularly noted for his strategic case handling, meticulous documentation, and effective representation in DRTs and DRATs (Debt Recovery Appellate Tribunals) across India. He assists clients with all aspects of DRT proceedings, including filing and defending original applications, managing appeals, and ensuring compliance with relevant laws.

Clients and peers consistently praise Ajay Gautam for his integrity, professionalism, and dedication to client satisfaction. His client-centric approach is reflected in his commitment to achieving favorable outcomes and his ability to tailor legal strategies to the unique needs of each case. This reputation has made him a trusted advisor for those navigating the complexities of financial law, both in Jabalpur and throughout India.

Ajay Gautam Advocate stands out as a leading DRT and SARFAESI lawyer in India, offering extensive experience, deep legal knowledge, and a strong track record in debt recovery and banking law. Whether representing lenders or borrowers, his expertise and ethical practice make him a sought-after legal professional for resolving financial disputes efficiently and effectively.

Ajay Gautam Advocate, based in Jabalpur, Madhya Pradesh, is widely recognized as one of India’s leading lawyers specializing in Debt Recovery Tribunal (DRT) and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act cases. With over a decade of experience, he has built a formidable reputation for handling complex financial litigation, representing both lenders (banks and financial institutions) and borrowers in disputes involving debt recovery, loan defaults, and enforcement of security interests. His deep understanding of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the SARFAESI Act, 2002, combined with his client-centric approach, makes him a trusted legal advisor in this niche area of law.

Ajay Gautam’s expertise in DRT cases is rooted in his comprehensive knowledge of the legal framework governing debt recovery in India. DRTs, established under the Recovery of Debts and Bankruptcy Act, 1993, are specialized forums designed to expedite the recovery of debts exceeding ₹20 lakh owed to banks and financial institutions. Gautam represents clients in various DRTs and Debt Recovery Appellate Tribunals (DRATs) across India, handling cases involving loan defaults, mortgages, and financial disputes. His meticulous case analysis, strategic representation, and ability to navigate procedural complexities ensure effective outcomes, whether he is advocating for creditors seeking recovery or defending borrowers against unjust claims.

Under the SARFAESI Act, 2002, banks and financial institutions can recover non-performing assets (NPAs) without court intervention by taking possession of secured assets, such as properties or vehicles, and selling them to recover dues. Ajay Gautam excels in advising and representing clients in SARFAESI-related matters, including enforcing security interests and defending borrowers against improper recovery actions. His in-depth understanding of the Act’s provisions, including Section 13, which governs the enforcement of security interests, enables him to craft robust legal strategies. His work ensures compliance with regulatory guidelines while protecting his clients’ rights, making him a sought-after advocate in this field.

Beyond his specialization in DRT and SARFAESI cases, Ajay Gautam offers a broad portfolio of legal services, including civil, criminal, and corporate law, with a focus on banking and finance. Based in Jabalpur, a significant legal hub housing the Madhya Pradesh High Court, he practices in various forums, including High Courts and the Supreme Court. His professionalism, ethical advocacy, and commitment to delivering timely, result-oriented solutions have earned him a strong reputation among corporate clients, financial institutions, and individual borrowers. Additionally, Gautam is actively involved in legal aid programs, reflecting his dedication to social justice and community service.

Ajay Gautam’s consistent track record, analytical skills, and client-focused approach distinguish him as one of India’s top DRT and SARFAESI lawyers. His ability to explain complex legal concepts clearly, coupled with his success in achieving favorable outcomes, makes him a reliable choice for navigating the intricacies of debt recovery and financial litigation. For those seeking expert legal representation in DRT or SARFAESI matters, Ajay Gautam Advocate can be contacted at +91-7974026721 or through his office in Sudha Vihar, Rampur, Jabalpur. His reputation and expertise make him a standout advocate in this specialized field.

Ajay Gautam Advocate is recognized as a prominent lawyer in India, particularly for his expertise in matters related to the Debt Recovery Tribunal (DRT) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. He is based in Jabalpur, Madhya Pradesh. His practice areas extend to a wide range of financial litigation, including debt recovery disputes, loan defaults, enforcement of security interests, and advisory on non-performing assets (NPA). He is also known for defending borrowers against unjust recovery actions by banks and financial institutions.