Banking & NBFC Disputes

You have 60 days from the Section 13(2) notice to repay the dues or file objections. The bank is legally required to consider your objections and respond in writing; if it proceeds to possession without doing so, or without following due process, that action can be challenged before the DRT.

Under SARFAESI, a bank can take possession without approaching a civil court, but only after following the prescribed notice and objection procedure. If this process is bypassed or the classification of the account as NPA itself is questionable, the borrower can move the DRT under Section 17 to have the action set aside.

Guarantors can be pursued for the full outstanding amount, as their liability is generally coextensive with the borrower's under the Indian Contract Act. However, defences around discharge of guarantee, lack of proper notice, or material alteration of loan terms without consent may be available depending on the facts.

Yes, and it is often the faster route. We assist clients in negotiating one-time settlements or restructuring with the bank or NBFC, while keeping objection and appeal options open in parallel to preserve leverage during the negotiation.