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A.Dear Sir,
The said provisions are very serious in nature and empowers the Bankers. If such notice is issued to you approach Debt Recovery Tribunal and try to get a stay order.
The said provisions are very serious in nature and empowers the Bankers. If such notice is issued to you approach Debt Recovery Tribunal and try to get a stay order.
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A.Dear Client,
Section 13(2) of the Sarfaesi Act provides that if a borrower who is under liability to a secured creditor, makes any default in repayment of secured debt and his account in respect of such debt is classified as a non-performing asset(NPA), then a secured creditor may require the borrower by notice in writing to discharge his liability within sixty days from the date of notice with an indication that if he fails to do so, the secured creditor shall be entitled to exercise all or any of its rights in terms of section 13(4) of the Act. The borrower can challenge the notice u/s. 13(2) of Act in the Civil Court as well as in the High Courts by way of writ jurisdiction to defend his case. However, that is hardly sustainable as because the borrower cannot approach the court or any other forum at the interlocutory stage of the proceedings that is from the issue of notice u/s. 13(2) till the final action taken u/s. 13(4) of the Act. On receipt of possession notice u/s. 13(4) the borrower can prefer to appeal before DRT u/s. 17 within 45 days, seeking stay of proceedings and to set aside the action initiated. Reach out to an Advocate for guidance and steps.
Section 13(2) of the Sarfaesi Act provides that if a borrower who is under liability to a secured creditor, makes any default in repayment of secured debt and his account in respect of such debt is classified as a non-performing asset(NPA), then a secured creditor may require the borrower by notice in writing to discharge his liability within sixty days from the date of notice with an indication that if he fails to do so, the secured creditor shall be entitled to exercise all or any of its rights in terms of section 13(4) of the Act. The borrower can challenge the notice u/s. 13(2) of Act in the Civil Court as well as in the High Courts by way of writ jurisdiction to defend his case. However, that is hardly sustainable as because the borrower cannot approach the court or any other forum at the interlocutory stage of the proceedings that is from the issue of notice u/s. 13(2) till the final action taken u/s. 13(4) of the Act. On receipt of possession notice u/s. 13(4) the borrower can prefer to appeal before DRT u/s. 17 within 45 days, seeking stay of proceedings and to set aside the action initiated. Reach out to an Advocate for guidance and steps.
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