Banking legal proceudre

1) If you are for the Bank then ask the Bank officials who have the rady made flow chart detailing does & donts related to SARFAESI Proceedings,

2) If you are for the defaulting borrower, send a representation immediately on receipt of the Demand Notice u/s13(2) of the SARFAESI Act,2002 &

3) File an Application u/s17(1) of the Act before the DRT within 45 days from the date of the Possession Notice issued by the Bank u/s13(4) of the Act finding faults of the Bank in following the steps ennumerated in SARFAESI Act,2002,

4) Engage a lawyer experienced in handling SARFAESI matters for the purpose. 

Please purchase and read a Bare Act book containg the DRT Act and SARFAESI Act and Rules.

When the recovery amount is below Rs.10 lakhs, the case has to be filed in civil court.  When the amount is above 10 lakhs it has to be filed in DRT.  The DRT is a tribunal not court.  

Regarding the SARFAESI Act, it is the act enacted for instant recovery of amount.  It mandates the banks to immediately bring the mortgaged property for sale and recover the same.  The case will be continued in the Civil court/DRT.  If the case goes in favour of Bank it is ok.  But when the case goes in fvour of borrower, the bank is liable to repay the amount to the borrower. Earlier the procedure was that after getting the decree from the Civil court/DRT then only the property can be auctioned and sold.