Today banks and financial institutions have become more tyrannical than old Sahukars in the recovery of debts. Within 6 months they can sell the property of the defaulter if he fails to take any action through DRT. Find the Best Lawyers for DRT & DRAT Litigation Services in Chennai.
Best Law Firm in Chennai for Debt recovery tribunal
Appellate Lawyers Office is one of the best Law Firms in Chennai for the Debt Recovery Tribunal. Senior counsels offer Litigation services in the Debt Recovery Appellate Tribunal.
WHAT IS DRT & DRAT?
DRT and DRT came to effect under the Recovery of Debts Due to Banks and Financial Institutions Act. In short, it is RDDBFI Act 1993. This is the history of Debts Recovery Tribunals, DRTs, and Debts Recovery Appellate Tribunal, DRAT. In fact, DRT Attorneys in our Law firm will help you in solving issues in these tribunals. Moreover, The main goal of DRT AND DRAT is to provide speedy adjudication and recovery of debts due to Banks and Financial Institution. Specific rules and laws Govern DRT, of them, are as follows :
- RDDBFI Act, 1993
- SARFAESI Act, 2002
- The Enforcement of Security Interest and recovery of debt laws and miscellaneous provisions (Amendment) Act, 2016
DRT & DRAT LITIGATION SERVICES BY TOP LAW FIRMS
DRT deals with the cases related to NPAs (Non Performing Assets) of the secured creditors, mostly banks, under the SARFAESI Act . When recovering money from the customers, the banks need to follow the norms and guidelines stipulated by the RBI.
Top Law Firms, Legal consultants & Advocates are most important in dealing with DRT litigation.
Top Lawyers to file DRT cases in Chennai
A borrower can file an appeal with DRT and then with DRAT if he is into trouble due to the action of the Bank. But he cannot file an appeal with any civil court. The borrower needs to deposit 30 to 50 percent of the dues before an appeal with DRAT. The appeal is about challenging the action of the bank or financial institution. Our DRT Advocates in Chennai will help you to protect your rights and save your assets.
Find the Best DRAT Lawyers in Chennai
This SARFAESI Act is both blessing for bank and a huge problem for borrower. This is especially for those creditors or borrowers, who are not willful defaulter. It may be due to default in repayment of loan taken from Bank due to any genuine reason.
Notices under SARFAESI Act
In any case, it is of some personal or professional difficulty. Through this act, the banks have unfettered power to take possession of the property of unsuspected borrowers. They simply issue Notices under SARFAESI Act, without approaching the court. Find the best DRAT Lawyers in Chennai from Top law firms in Chennai.
Debt Recovery Advocates (DRT Lawyers)
One can Indeed challenge the Notices under SARFAESI Act in DRT & DRAT. Avoid auctions by availing of all DRT & DRAT legal services from our Debt recovery advocates. Most of all, Save your property from the bank auctions today.
Documents required for the case :
- Notice of the bank,
- Summons received by the DRT.
- Other important documents
Steps Followed By Banks and Financial Institutions in Recovery of Debts from Defaulters
STEP 1: Declaration of Account as Non-Performing Account:–
When a borrower fails to pay 3 loan EMIs consecutively, the bank or financial institution declares such account of the borrower as NPA – Non-Performing Account. By declaring as NPA the banks invoke the provisions of the SARFAESI Act.
STEP 2: Issuance of formal notice
A formal notice is issued to the borrower apprising him of the current loan position and asking the borrower to deposit the defaulted loan amount to regularize his account.
STEP 3: Issuance of Demand Notice under Section 13 (2) of the SARFAESI Act
If the borrower fails to deposit defaulted amount formal notice then the bank issues a Demand Notice under Section 13 (2) of the SARFAESI Act directing the borrower to pay the full outstanding amount within 60 days of the demand notice.
STEP 4: Chance for Borrower’s Legal representation
The borrower with legal representation can explain his position to the bank giving reasons for his account becoming NPA and can propose a one-time settlement or restriction of the loan. It is under the sole discretion of the bank to decide upon the settlement. Availing DRT & DRAT legal services would safeguard your assets in case of default on the loan. At this point, Our DRAT counsels help you to protect all your assets from these issues.
STEP 5: Issuance of Possession Notice under section 13 (4) of the SARFAESI Act
Subsequently, if the terms of legal representation are not favorable to bankers then they would further issue a Possession Notice under section 13 (4) of the SARFAESI Act, 2002 to take physical possession of the borrower’s property.
STEP 6: Borrower can challenge Possession Notice under section 13 (4)
This notice could be challenged before the Debt Recovery Tribunal by filling the Securitization Application under section 17 of the same act, accompanied by a fee.
STEP 7: Banks seek police help to take possession
Banks after issuing notice under section 13 (4) of the Act approach the Concerned District Magistrate to seek police help to take possession of the Borrower’s mortgaged property provided no stay is granted by DRT.
STEP 8: Notice for the sale of Borrower’s Assets
Banks with or without possession of the borrower’s property issue notice for the sale of the Borrower’s Assets. The notice contains a Description of assets, the time of Auction, the minimum reserve price for the mortgaged property, etc. The notice would be published in two newspapers, one in English Language and the other in Vernacular language. Banks sell the property of the borrower in the auction to recover their loan.
Contact No.1 DRT Lawyers in Chennai
The borrowers must be more vigilant and not sleep over their rights. He can raise disputes with any bank if any with the concerned DRT.
Contact No.1 DRT & DRAT Lawyers in Chennai. It is always advisable to approach the Debt Recovery Tribunal in the early stages. ie., before Bank or Secured Creditor, takes actual physical possession of the mortgaged property. This is because after possession it is difficult to repossess the property from the bank. You cannot get back without paying a large amount of loan at once.
What you must do if actual physical possession is not taken by a bank or Secured creditor? The answer is “the borrower can approach a Debt recovery tribunal at the earliest”.
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DRT & DRAT Legal Services for SARFAESI Act Legal Problems
The best advice would be to challenge the notices issued by the bank at the very earliest. They must get stay on further proceedings preventing the bank from taking any adverse steps. You would have time to think about options like a one-time settlement, restructuring of the loan, the hike of loan tenure, etc with legal help. DRT & DRAT Lawyers legal services are One stop solution to SARFAESI Act-related legal problems.
