SARFAESI · 13(2)
Demand notice
Where a borrower's account is classified as NPA, the secured creditor may require the borrower by notice in writing to discharge the liabilities within sixty days, failing which it may exercise the s. 13(4) rights.
Library
Civil & Commercial
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
2002 · Ministry of Finance · 42 sections
Lets banks and financial institutions enforce security interests in NPAs without court intervention, subject to a right of appeal to the Debts Recovery Tribunal.
Most-invoked sections
SARFAESI · 13(3A)
Borrower's representation
On receipt of the borrower's representation or objection, the secured creditor must consider it and communicate reasons for non-acceptance within fifteen days.
SARFAESI · 13(4)
Measures after notice period
The secured creditor may take possession of the secured asset, take over management, appoint a manager, or require debtors of the borrower to pay it directly.
SARFAESI · 14
Chief Metropolitan Magistrate / District Magistrate to assist
The secured creditor may apply to the CMM or DM to take possession of the secured asset and forward it to the creditor; the magistrate's function is ministerial.
SARFAESI · 17
Application to the Debts Recovery Tribunal
Any person aggrieved by measures under s. 13(4) may apply to the DRT within forty-five days; the DRT may restore possession if the measures were not in accordance with the Act.
The text shown is a working summary used inside Nyaya for grounding and UI preview. For verbatim reproduction, refer to the bare Act published on indiacode.nic.in.