Banking & Finance Lawyers

Banking and finance disputes cover loan recovery actions by banks and NBFCs, challenges to a loan being classified as a non-performing asset (NPA), action under the SARFAESI Act for secured loans, guarantor liability, loan restructuring, and complaints against banks through the RBI's Banking Ombudsman scheme. The core statutes are the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, which lets banks seize and sell secured collateral without going to court in many cases, and the Recovery of Debts and Bankruptcy Act, 1993, under which specialised Debt Recovery Tribunals (DRTs) hear bank recovery suits.

If a loan account is classified as NPA (typically after 90 days of non-payment), the bank can issue a demand notice under SARFAESI giving 60 days to repay before moving to take possession of secured assets — this notice can be challenged before the DRT if the classification or amount is disputed. Guarantors can also be pursued for the full outstanding amount, independent of action against the primary borrower, unless the guarantee terms say otherwise. For larger corporate defaults, proceedings may shift to the Insolvency and Bankruptcy Code, 2016 before the NCLT instead.

If you've received a SARFAESI notice, are being pursued as a guarantor, or believe your account has been wrongly classified as NPA, timing is important — SARFAESI and DRT proceedings move on strict statutory timelines, and options narrow considerably once assets are actually taken into possession.