Banking, Finance & Recovery

In detail:

The Firm has a well-established Banking, Finance & Recovery practice, advising and representing banks, financial institutions, and non-banking financial companies (NBFCs) in complex recovery, enforcement, and financial dispute matters. The practice is defined by a strong understanding of financial systems, regulatory frameworks, and creditor rights.

The Firm regularly acts in proceedings before Debt Recovery Tribunals (DRT), Debt Recovery Appellate Tribunals (DRAT), and other judicial forums, handling high-value recovery actions, enforcement of security interests, and borrower disputes. Its experience extends to proceedings under the SARFAESI Act, 2002, as well as parallel civil, criminal, and insolvency actions arising from financial defaults.

Scope of Practice

Debt Recovery & Enforcement
Representation of banks and NBFCs in recovery proceedings before DRT/DRAT, including claims arising out of loan defaults, secured lending, and financial transactions.

SARFAESI Proceedings
Advising and acting in enforcement of security interests without court intervention, including possession, auction, and defence against borrower challenges under Section 17 of the SARFAESI Act.

Insolvency-Linked Recovery
Strategic advice and representation in matters where recovery overlaps with insolvency proceedings before NCLT, ensuring alignment of creditor interests.

Borrower & Guarantor Disputes
Handling disputes involving loan agreements, guarantees, restructuring arrangements, and enforcement actions.

Typical Legal Process & Procedure

1. Pre-Default & Advisory Stage
   The Firm advises lenders on structuring transactions, securing interests, and mitigating risk at the documentation stage. In case of stress, it assists in restructuring strategies and pre-recovery planning.
2. Classification of Default
   Upon default, accounts may be classified as Non-Performing Assets (NPAs) in accordance with regulatory norms. The Firm advises on compliance and next steps for enforcement.
3. Initiation of Recovery Proceedings

• SARFAESI Route:
  Issuance of demand notice under Section 13(2), followed by enforcement measures under Section 13(4), including possession and sale of secured assets.
• DRT Proceedings:
  Filing of Original Application (OA) before the DRT for recovery of outstanding dues, leading to adjudication and issuance of Recovery Certificate.

4. Borrower Challenges & Defence
   Borrowers may challenge enforcement actions before DRT under Section 17 of SARFAESI or contest recovery proceedings. The Firm represents lenders in defending such actions and securing continuity of enforcement.
5. Enforcement & Realisation
   Execution of recovery certificates through attachment, auction, and sale of assets, ensuring actual realisation of dues.
6. Parallel Proceedings
   Strategic handling of overlapping actions, including:

• Insolvency proceedings under IBC
• Criminal complaints in cases of fraud or wilful default
• Civil proceedings for additional remedies

Approach

The Firm adopts a creditor-centric, strategy-led approach, focusing not merely on obtaining orders but on effective recovery and realisation. It combines procedural expertise with commercial awareness to navigate complex, multi-forum disputes.

With extensive experience in handling high-value financial disputes and enforcement actions, the Firm ensures swift, legally sound, and commercially effective outcomes for its clients.