Frequently asked questions

An application under Section 17 before the Debts Recovery Tribunal must ordinarily be filed within forty-five days from the date on which any measure under Section 13(4) is taken. Act early; delay can close the door.

The borrower is given sixty days from the notice to discharge the liability. Written objections to the notice should be made within that period, and the secured creditor must reply to them with reasons.

That depends on the facts. Courts and tribunals look at compliance with the notice and sale rules, the valuation and reserve price, and whether payment or settlement is offered. Interim relief is discretionary and often conditional on a deposit.

For an appeal before the Debts Recovery Appellate Tribunal under Section 18, the borrower must deposit fifty per cent of the debt due as claimed by the secured creditor or determined by the Tribunal, whichever is less. The Appellate Tribunal may reduce this to not less than twenty-five per cent, with reasons recorded.

The High Court has writ jurisdiction, but it generally expects borrowers to use the statutory remedy before the DRT. Writs are entertained only in limited situations, such as a manifest lack of jurisdiction or violation of fundamental rights.

Purchasers should verify the sale notice and its publication, the reserve price, encumbrances and any pending challenge before bidding, and must observe the payment timelines under the Rules. We advise on diligence and on securing possession afterwards.

No. The Act does not apply to certain categories, such as unsecured loans, security over agricultural land and some small-value dues. Whether it applies to your loan should be checked against the Act and the documents.