How can banks recover debt from a borrower?
- 1 Views
Recovery of money by banks from the borrower can be done under SARFAESI Act. It involves a two-step process. Firstly, securitisation and reconstruction of financial assets; secondly, enforcement of security interest. Whenever, a bank gives financial assistance to a person, the assistance is termed as a loan to the borrow against any security. In case of default of payment by the borrower, a legal notice is served because of existence of security interest for repayment of debt. If the default persists, the security is sold off to Securitisation and Reconstruction Companies (SCOs and RCOs). The bank in turn receives money and its Non-Performing assets or NPAs are converted into liquid money.
The borrower now becomes the borrower of SCOs and RCOs. Further, in a different scenario, banks can even opt for enforcement of security interest in a debt recovery tribunal (DRT). A civil action for recovery of money is taken, wherein after the failure to comply with the legal notice, the Court is entitled to sell the security to recover money and to take other measures for the enforcement of this security interest.
Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!
You might like reading these
Most Consulted Default or Fraud Advocates
Choose from our most consulted lawyers across India and get instant legal advice.
Advocate Amaresh Singh
- Saket, Delhi
- 19+ Years Of Exprience
- User Rating N/A
Advocate Amaresh Singh is a qualified legal professional, having obtained his law degree from University of Allahabad, in the year 1999. He has been practicing and handling cases independently with a result oriented approach, both professionally and ethically and has now acquired many years of professional experience in providing legal consultancy and advisory services. Advocate Amaresh provides services in various field of Criminal Litigation, Civil Litigation, Arbitration Matters, Consumer Disputes, Labour Disputes, Service Matters, Property Disputes, Environmental Law and Drafting of Legal Documents. The courts he practices in includes Supreme Court of India, High Court of Delhi, Delhi & NCR District Courts, Debt Recovery Tribunals, National Consumer Forum, Delhi State Consumer Forum, Delhi & NCR District Consumer Forums, Central Sales & Excise Tax Tribunal, Central Administrative Tribunal, National Green Tribunal. Advocate Amaresh enrolled with the Bar Council of Delhi in 2000. He is a member of the Delhi High Court Bar Association.
Read MoreAdvocate Vivek Srivastava
- Sector 12, Noida, Noida
- 18+ Years Of Exprience
- User Rating N/A
Advocate Vivek Srivastava is a Noida based lawyer and has been practising law since 2001. He has been providing legal and advisory services as an independent lawyer. Advocate Vivek Srivastava got enrolled with the Bar Council in the year 2001. He has acquired his legal education at Chaudhary Charan Singh University and holds extensive experience in working in the most complex areas of Arbitration, Banking, Civil Litigation, Divorce & Alimony, Labour & Service and Marriage Registration. He holds experience in efficiently handling varied cases and often makes appearances across Delhi High Court and District Consumer Forums Delhi. He avidly believes in achieving the objectives of his client with compassion and accurate advocacy. Advocate Vivek Srivastava is known for providing timely and responsive legal services for his clients by providing them with the most expeditious legal course of action.
Read MoreAdvocate Ganesh Kumar Sharma
- Sector 23, Panchkula
- 20+ Years Of Exprience
- User Rating N/A
Advocate Ganesh Kumar Sharma is an intellectual, skilled and experienced lawyer based out of Panchkula, Haryana and has been a part of the legal fraternity for over 18 years. He possesses excellent arguing abilities and research skills for which he is well known. Ganesh Kumar Sharma's legal services span from Armed Forces Tribunal, Labour & Service and Debt Recovery. Being an excellent researcher, he also offers his services in Documentation and drafting of legal agreements and documents. Ganesh Kumar practices at the Hon’ble Punjab, Haryana High Court, Debt Recovery Tribunal and the Armed Force Tribunal. He got himself enrolled with the Bar Council in 2014.
Read MoreAdvocate Hemant Jadhav
- Bhusawal, Jalgaon
- 11+ Years Of Exprience
- User Rating N/A
Advocate Hemant Jadhav is a Jalgaon based lawyer and has been practising law since 2008. He has been providing legal and advisory services as an independent lawyer. Advocate Hemant Jadhav got enrolled with the Bar Council in the year 2008. He holds extensive experience in working in the most complex areas of Divorce, Family Law, Criminal Defence, Consumer Protection, Property Real Estate Law, Default or Fraud, General Legal and Traffic Violations. He holds experience in efficiently handling varied cases and often makes appearances across District Court Jalgaon and Motor Accident Claims Tribunal, Mumbai. He avidly believes in achieving the objectives of his client with compassion and accurate advocacy. Advocate Hemant Jadhav is known for providing timely and responsive legal services for his clients by providing them with the most expeditious legal course of action.
Read MoreAdvocate Jitendra Ahuja
- Crawford Market, Mumbai
- 10+ Years Of Exprience
- User Rating N/A
Advocate Jitendra Ahuja has been providing legal advice and services for over 8 years and pertains to matters of Civil, Criminal, Matrimonial, Property, Arbitration laws, Consumer protection, Cheque Bounce and General Legal. He specialises in Property laws as well as money recovery matters. He possess sound knowledge of law and sharp legal skills in application of law. Advocate Jitendra is enrolled with the Bar Council of Maharashtra & Goa in 2009. He appears before the Bombay High Court, Civil Court, Consumer Court, etc.
Read MoreAdvocate SANJAY THAMPI
- Ernakulum, Ernakulam
- 9+ Years Of Exprience
- User Rating N/A
Advocate SANJAY THAMPI is a Ernakulam based lawyer and has been practising law since 2010. He has been providing legal and advisory services as an independent lawyer. Advocate SANJAY THAMPI got enrolled with the Bar Council in the year 2010. He has acquired his legal education at Mahatma Gandhi University and holds extensive experience in working in the most complex areas of Arbitration, Cheque Bounce, Criminal Defense, Debt Recovery, Immigration, Marriage Registration, Property/Real Estate. He holds experience in efficiently handling varied cases and often makes appearances across City Civil Court Bengaluru, Debts Recovery Tribunal (DRT) Ernakulam, District Court Ernakulam, District and Sessions Court Ernakulam, Family Court Bangalore, Karnataka High Court, Kerala High Court. He avidly believes in achieving the objectives of his client with compassion and accurate advocacy. Advocate SANJAY THAMPI is known for providing timely and responsive legal services for his clients by providing them with the most expeditious legal course of action.
Read MoreTop Consulted Default or Fraud Advocates
Choose from our most consulted lawyers across India and get instant legal advice.
Advocate Amaresh Singh
- Saket, Delhi
- 19+ Years Of Exprience
- User Rating N/A
Advocate Vivek Srivastava
- Sector 12, Noida, Noida
- 18+ Years Of Exprience
- User Rating N/A
Advocate Ganesh Kumar Sharma
- Sector 23, Panchkula
- 20+ Years Of Exprience
- User Rating N/A
Advocate Hemant Jadhav
- Bhusawal, Jalgaon
- 11+ Years Of Exprience
- User Rating N/A
Advocate Jitendra Ahuja
- Crawford Market, Mumbai
- 10+ Years Of Exprience
- User Rating N/A
Advocate SANJAY THAMPI
- Ernakulum, Ernakulam
- 9+ Years Of Exprience
- User Rating N/A