Procedure and Stages at DRT Court for SA & OA Application By Advocate Paresh M Modi – Ahmedabad Gujarat
OA Case & SA Case before DRT — Complete Practical Guide
(1) What is OA Case at DRT? (Original Application)
Meaning
OA (Original Application) is filed by Banks / Financial Institutions before DRT for recovery of loan dues.
👉 Governing Law:
- Recovery of Debts and Bankruptcy Act, 1993 (RDB Act)
- Earlier known as RDDBFI Act.
Filing Reasons (બેંક OA કેમ ફાઈલ કરે?)
Bank files OA when:
- Loan becomes NPA (Non-Performing Asset)
- Borrower fails to repay dues
- Bank wants recovery certificate through tribunal
Gujarati:
👉 લોન NPA બને પછી બેંક દેવું વસૂલ કરવા DRT માં OA ફાઈલ કરે છે.
Relevant Sections
- Section 19 – Filing of OA before DRT
- Section 19(4) – Issue of summons
- Section 19(20) – Recovery Certificate
Step-by-Step OA Case Stages
Bank Side Procedure
- Loan default occurs
- Bank classifies account as NPA
- OA filed u/s 19 RDB Act
- Documents filed (loan agreement, statement, mortgage)
Gujarati:
➡️ બેંક લોન દસ્તાવેજો સાથે OA કરે છે.
Borrower Side Procedure
- Summons received from DRT
- Written Statement / Reply filed
- Raise objections:
- Wrong calculation
- Illegal interest
- No proper sanction
- Limitation issue
Gujarati:
➡️ લોન લેનાર Written Statement આપી શકે છે.
Trial Stage
- Evidence affidavit
- Cross examination (rare but possible)
- Final arguments
Final Order
DRT issues:
✅ Recovery Certificate → Sent to Recovery Officer for attachment.
Gujarati:
➡️ અંતે Recovery Certificate આપવામાં આવે છે.
(2) What is SA Case at DRT? (Securitisation Application)
Meaning
SA is filed by borrower / guarantor / aggrieved person challenging bank action under SARFAESI.
👉 Governing Law:
- SARFAESI Act, 2002
- Section 17 – Right to approach DRT.
Gujarati:
➡️ SARFAESI હેઠળ બેંકે લીધેલા પગલાં સામે SA થાય છે.
Filing Reasons (SA કેમ થાય?)
Borrower files SA when bank takes measures under:
- Section 13(4) possession notice
- Symbolic possession
- Physical possession
- Auction notice
Important SARFAESI Sections
- 13(2) – Demand Notice
- 13(4) – Possession / Enforcement
- 14 – Magistrate assistance
- 17 – SA before DRT
Step-by-Step SA Case Stages
👤 Borrower Side
- Receive 13(4) notice
- File SA u/s 17 within limitation
- Seek interim stay
Gujarati:
➡️ 13(4) પછી DRT માં SA ફાઈલ કરી શકાય.
Bank Side
- File reply affidavit
- Produce valuation report
- Produce auction documents
Hearing Stage
- Interim stay hearing
- Arguments on legality of SARFAESI action
Final Order
DRT may:
✅ Set aside bank action
✅ Modify measures
❌ Or dismiss SA
Gujarati:
➡️ DRT બેંકની કાર્યવાહી રદ પણ કરી શકે.
(3) Defence of Loan Borrowers — After 13(4) Notice
When borrower receives Section 13(4) notice:
✔️ Strong Defences (Borrower Side)
- Improper service of 13(2) notice
- 60 days not completed
- Wrong valuation
- Secured asset agricultural land
- Limitation expired
- Account wrongly classified NPA
Gujarati:
➡️ 13(4) પછી SA કરી શકાય અને ઉપરના બચાવ લઈ શકાય.
(4) Defence After Section 14 Magistrate Order
👉 Section 14 = Physical possession through DM / CJM.
Borrower Remedies
- Challenge order before DRT in SA
- Argue no application of mind by Magistrate
- Procedural defect in affidavit
Gujarati:
➡️ કલમ 14 નો ઓર્ડર પણ DRT માં ચેલેન્જ કરી શકાય.
(5) Defence Against Auction Publication by Bank
If bank publishes auction notice:
Borrower Can Challenge:
- Undervaluation
- No reserve price transparency
- 30 days notice violation
- Rule 8 & Rule 9 violation (Security Interest Rules)
Gujarati:
➡️ ઓક્શન નોટિસ ખોટી હોય તો સ્ટે મેળવી શકાય.
(6) After Auction & Sale Deed to Third Party — What Remedy Left?
This is the MOST IMPORTANT practical question.
Even after auction sale deed executed, borrower still has remedies.
Legal Remedies Available
✔️ Remedy 1 — Continue SA Case
If SA already filed:
- Challenge sale confirmation
- Challenge fraud or undervaluation
Gujarati:
➡️ SA ચાલુ રાખી શકાય છે.
✔️ Remedy 2 — File Appeal before DRAT
Against DRT order:
- Appeal under Section 18 SARFAESI.
✔️ Remedy 3 — Civil Suit (Limited Grounds)
If:
- Fraud
- Collusion
- Title issue
(Note: Civil jurisdiction limited due to Section 34 bar.)
✔️ Remedy 4 — Writ Petition (High Court)
If:
- Violation of natural justice
- Jurisdictional error
Gujarati:
➡️ હાઈ કોર્ટમાં રિટ પણ કરી શકાય.
✔️ Remedy 5 — Redemption Rights (Before Sale Confirmation)
Borrower has right to redeem property before sale completion.
(7) After Registered Sale Deed — Practical Position
If sale deed completed:
👉 Third party rights become stronger.
BUT borrower can still challenge if:
- Fraud
- Material irregularity
- Gross undervaluation
- Non-compliance of SARFAESI rules
Gujarati:
➡️ સેલ ડીડ પછી પણ ગંભીર ખામી હોય તો કેસ કરી શકાય.
(8) Full Litigation Flow — From Bank Action to Final Stage
Bank Side Timeline
- 13(2) Notice
- 13(4) Possession
- Section 14 Magistrate Order
- Auction Publication
- Auction Sale
- Sale Certificate / Sale Deed
Borrower Side Defence Timeline
- Representation to 13(2) notice
- File SA after 13(4)
- Seek interim stay
- Challenge auction
- Appeal to DRAT
- High Court Writ (if required)
(9) Practical Litigation Strategy
✔️ Early SA filing gives strongest defence.
✔️ Delay reduces chances after sale deed.
✔️ Procedural violations under SARFAESI Rules are strongest grounds.
Gujarati:
👉 વહેલી SA સૌથી મજબૂત બચાવ છે.
👉 સેલ ડીડ પછી કેસ મુશ્કેલ બને છે.
The Debt Recovery Tribunal (DRT) 1 in Ahmedabad covers specific areas in Gujarat, primarily catering to cases related to debt recovery filed by banks and financial institutions under the Recovery of Debts and Bankruptcy Act. The areas under the jurisdiction of Ahmedabad DRT 1 include the entire Ahmedabad district and surrounding regions, along with specific cases from other major cities and districts in Gujarat.
In addition to his work at DRT-1, Advocate Modi also takes on cases at DRT-2, which encompasses areas such as Ahmedabad, Surat, Vadodara, and Rajkot. His deep understanding of the legal framework and keen insight into the complexities of financial legislation make him a valuable asset for individuals and businesses navigating the intricacies of debt recovery.
Advocate Modi is committed to providing tailored legal solutions that meet the unique needs of his clients. His strategic approach and dedication to achieving favorable outcomes have earned him a reputation as a trusted advocate in the field. Whether dealing with individual debtors or corporate entities, he ensures that every case is handled with the utmost professionalism and diligence.[/vc_column_text][/vc_column][/vc_row]
The Debt Recovery Tribunal (DRT) 2 in Ahmedabad covers additional regions and cases in Gujarat, distinct from those managed by DRT 1. DRT 2 primarily deals with areas outside the main districts handled by DRT 1 and addresses cases involving debt recovery filed by banks and financial institutions.
Advocate Paresh M Modi is a seasoned legal professional specializing in handling cases at the Debt Recovery Tribunals (DRT). Currently, he manages cases at DRT-1, which covers the jurisdiction of key cities such as Mumbai, Thane, Nashik, and Pune. His extensive experience in this tribunal allows him to effectively represent clients in matters related to debt recovery, financial disputes, and insolvency proceedings.
In addition to his work at DRT-1, Advocate Modi also takes on cases at DRT-2, which encompasses areas such as Ahmedabad, Surat, Vadodara, and Rajkot. His deep understanding of the legal framework and keen insight into the complexities of financial legislation make him a valuable asset for individuals and businesses navigating the intricacies of debt recovery.
Advocate Modi is committed to providing tailored legal solutions that meet the unique needs of his clients. His strategic approach and dedication to achieving favorable outcomes have earned him a reputation as a trusted advocate in the field. Whether dealing with individual debtors or corporate entities, he ensures that every case is handled with the utmost professionalism and diligence.
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Debt Recovery Tribunal
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Home Loan
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Mortgage Loan
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Bankruptcy
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Defaulters
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NPA
Non-Performing Assets (NPA) refer to loans or advances where the borrower has defaulted or missed repayments for over 90 days. NPAs impact a lender’s profitability and are critical indicators of financial health.
CIBIL
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Contact Advocate Paresh M Modi
In Ahmedabad, Gandhinagar, Gujarat, Mumbai, Maharashtra, Pune, Delhi, For legal consultation or representation in matters of DRT Court -Tribunal Matters, Anticipatory bail, Regular bail, Discharge Applications, Special Act Cases, FIR Quashing, Cheque Return Cases, or Criminal Appeals and For expert legal advice and services, Advocate Paresh M Modi can be contacted during office hours.
- Office Landline: 079-48001468 (Time 10:30 AM to 6:30 PM, Monday to Saturday).
- WhatsApp SMS: 9925002031 (Time 9:00 AM to 9:00 PM).
- Email: advocatepmmodi@gmail.com.
- Website: www.advocatepmmodi.in.
- Office Address: Office No. C/112, Supath-2 Complex, Opp. Kohinoor Plaza Hotel, Near Old Wadaj Bus Stand, Ashram Road, Ahmedabad – 380013, Gujarat, India.
