Under the SARFAESI Act, 2002, banks and financial institutions can recover secured debts without court intervention.
Types of SARFAESI cases:
• Demand Notice under Section 13(2)
• Possession Notice under Section 13(4)
• Auction of secured assets (land, house, machinery)
• Borrower appeals before DRT (S.17)
Commonly used when default amount is above ₹1 lakh, especially NPAs.
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DRTs handle:
• Bank loan recovery above ₹20 lakh
• Enforcement of security interest
• Recovery certificates (RCs)
• Appeals before DRAT
DRT proceedings are fast-track but often deal with large corporate NPAs.
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IBC, 2016 covers corporate insolvency and personal guarantor insolvency.
Key case types:
• Section 7: Financial creditor vs company
• Section 9: Operational creditor vs company
• Section 10: Company initiating insolvency
• CIRP cases before NCLT
• Liquidation cases
• Individual/partnership insolvency
IBC is widely used for big recoveries from defaulters.
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Used for recovery in:
• Business transactions
• Personal loans
• Vendor payments
These cases allow criminal prosecution + compensation, making recovery faster.
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Filed before District or High Courts:
• Money Recovery Suits
• Summary Suits under Order 37 CPC
• Civil execution cases
• Attachment & garnishee orders
Useful for private lenders, landlords, and businesses.
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Common in:
• Loan agreements
• Business contracts
• Builders–buyers disputes
Arbitral awards are enforceable like court decrees.
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Under the MSME Samadhaan Portal and MSME Act:
• Delayed payment cases
• Interest claims
• Recovery through MSEFC
MSMEs get priority and quick awards.
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For homebuyers:
• Refund with interest cases
• Delay compensation
• Recovery certificates (RC) against builders
RERA orders can be enforced through District Collectors.
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Applicable when fraud is involved:
• 406/420 IPC (breach of trust, cheating)
• Economic Offences Wing complaints
• Property attachment under CrPC
